Property magazine 2005 autumn

property

THE MAGAZINE OF THE INSTITUTE OF PROFESSIONAL AUCTIONEERS & VALUERS

The

AUTUMN 2005

PROFESSIONAL

OPEN DAY ON DEGREE COURSE

IPAV PUBLIC SEMINARS PURCHASING PROPERTY

FOR SALE M.I.P.A.V

contents W E L C O M E

T O

T H E

P R O P E R T Y

P R O F E S S I O N A L

Welcome to the Autumn edition of the Property Professional.

This is the first time that IPAV has produced an autumn edition of the magazine, making it a quarterly publication from this year on. I hope you find the articles and items covered of interest to you.

If, at any time, you wish to have a particular item covered or, indeed, would like to write an article of particular interest to you, please feel free to contact me.

Already we are into a hectic Autumn schedule. Our full and part-time classes recently commenced and I am glad to report that all were very heavily over-subscribed. This augurs well for the future of the auctioneering profession and shows that there continues to be a huge level of confidence in it.

For the first time, IPAV is organising a series of public seminars for home buyers and I look forward to them with interest. Home-buyers need truly independent advice on what is, for most people, the biggest investment of their life and I feel the Institute can fill that need ideally. Details of the seminars appear elsewhere in this issue.

Liam O’Donnell

THE PROPERTY PROFESSIONAL IS THE MAGAZINE OF THE INSTITUTE OF PROFESSIONAL AUCTIONEERS & VALUERS 129 LOWER BAGGOT STREET, DUBLIN 2.

TEL: 01 6785685 FAX: 01 6762890 E-mail: info@ipav.ie Website: www.ipav.ie CEI Website: www.web-cei.com

Chief Executive Officer Liam O’Donnell F.I.P.A.V.

Editor Tim Ryan Foley Ryan Communications Tel: 01 6624649

Advertising & Design Designroom info@designroom.ie

Publisher Designroom Tel: 01 497 9022 Design Room is a Member of Periodical Publishers’ Association of Ireland. www.ppa.ie

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AUTUMN 2005

PROFESSIONAL

Views expressed by contributors or correspondents are not necessarily those of IPAV or the publisher and neither IPAV nor the publisher accept any responsibility for them.

We are also organising a series of seminars for members on topics of interest and details will be circulated shortly.

In the meantime, those of you who have been to the capital may have noticed the scaffolding around our Headquarters! We recently had the entire outside repainted and all now look forward, literally, to a bright future on Baggot St.!

Warm regards

Liam O’Donnell Chief Executive

GETTING ABUSE FOR DOING YOUR JOB TOO WELL?

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LEARNING A DUTCH LESSON!

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A LETTING AGENT TO WHOM PROPERTY DEALINGS CAME NATURALLY!

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A NEW LEGAL GUIDE TO BUYING AND SELLING A HOME

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IPAV ORGANISES PUBLIC SEMINARS

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HELPING PROPERTY ACHIEVE ITS FULL POTENTIAL!

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TAX MATTERS

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DELIVERING QUALITY!

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DIARY 2006 The Property Dairy 2006 is about to go to print. This popular Diary, which contains the names and details of all members of the Institute, along with other useful information, will be slightly smaller in format this year and, therefore, easier to carry outside of the office.

Each paid up member will receive one complimentary copy. However, there will be a limited number of additional copies available for purchase by members. Each additional copy will cost €20 (to include P & P). Orders, inclusive of cheques, should be sent NOW to IPAV Headquarters, 129 Lower Baggot St., Dublin 2. the property professional

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MESSAGE FROM

THE PRESIDENT A chara By now you are all already into a very busy Autumn season and preparing for the challenges ahead. Despite the critics of doom, property prices have not collapsed and the sheer size of the property supplements in the national newspapers are testimony to the hectic activity in the marketplace.

However, prices have stabilised and with supply coming ever closer to meeting demand, young first-time buyers can look forward to an opportunity of owning a home within a reasonable timeframe.

There has been much talk recently in the media about one hundred per cent and even greater loans. I would simply urge mortgage brokers, lending agencies and young borrowers to act with extreme prudence and caution in regard to such products. My generation was always taught the good practice of savings and I think it is as good advice today as it ever was.

Willie Farrell President

As a basic rule, young purchasers should make sure they can meet all repayments and allow for a modest increase in interest rates before making a purchase. The frenzy that sometimes surrounds buying a house can lead to problems later on. However, I was glad to note in a recent survey by permanent tsb and the ESRI that, so far, there is no sign of any great rush into 100 per cent loans but it is early days yet.

This time of year is a very busy one for the Institute and I was delighted to see both our full and part-time courses so heavily subscribed. I wish all the students success in their studies and hope they find rewarding careers in auctioneering and estate agency or in parallel professions of which there are many from which to choose.

IPAV is currently in the process organising a series of seminars for the public on the main aspects of purchasing a property. This is a truly independent series and I hope they will all be well attended. As an initial project, the Institute has selected Dublin, Cork and Galway but we will review the venues in the light of their success.

Nor are we forgetting our existing members. The Institute is also organising a series of seminars at the same locations for our existing and practising members which will be more specialised and will focus on aspects of the newly introduced Residential Tenancies Bill and the increasingly important area of facilities management. I hope as many of you as possible will be able to attend these and benefit from them.

In the Spring of 2006, IPAV will also be organising another series of seminars for members at different venues to facilitate as many as possible.

As we go to print, the report of the Review Body on the auctioneering profession is imminent and I look forward to reading it with interest. The expected appointment in the not-toodistant future of a Regulator will radically alter the auctioneering profession and IPAV will have to be vigilant in ensuring that the interests of members are taken care of as we move forward.

No doubt, we are heading for a period of discussion on all aspects of the industry and I look forward to hearing your views in the months ahead.

Best wishes,

Willie Farrell President

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GETTING ABUSE FOR DOING YOUR JOB TOO WELL?

BY OVER-REGULATING THE AUCTIONEERING PROFESSION, THE MINISTER FOR JUSTICE MAY BE USING A BAZOOKA TO GET RID OF A FLY ARGUES PROPERTY ECONOMIST JAMES YOUNG. How many of you know of a situation where if someone does his/her job well, they get abuse for it? There may be a few circumstances where that is the case but it is difficult to think of more than perhaps a dozen.

Now estate agents are in the firing line for doing their jobs too well as the new regulatory body for estate agents is under consideration. Depending upon the outcome of the report and the implementation by the Minister for Justice, Equality and Law Reform, there may be some good things to come out of this process but more likely some bad outcomes for estate agents and the property market in general.

Before we analyse the policy responses to rapidly rising house prices, why don’t we look at why estate agents have come under fire of late.

Some commentators have been criticizing estate agents for providing guide prices at auction that do not reflect the final sale price of houses, inferring that estate agents are being ‘dishonest’ on guide prices in order to get more people into the auction room and create a bidding frenzy. House prices have been rising at double-digit levels in Greater Dublin for the past 10 years, especially in the second-hand house market, and these same commentators accuse estate agents of making huge fees by driving up the price of houses.

Then we have the issue of ‘gazumping’ and other practices that have been mentioned as a rationale for regulating how estate agents operate. In short, these commentators accuse estate agents of sharp practice in trying to ‘rip-off’ the house-buying public so that they can make bigger fees. In looking at these claims, it would appear that the biggest problem that these commentators have is that estate agents are actually doing their jobs well and are earning profits by doing so!

GAZUMPING More seriously, many of these claims have very little basis in fact. When asked about evidence for claims of ‘gazumping’ which these commentators claim is commonplace,

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they cannot provide any documentary evidence that it is either widespread or that the estate agents supposedly involved in this practice belong to any professional body such as IPAV, which would take action against them if proven true. This is not to say that ‘gazumping’ never happens, but if it is widespread enough to warrant Government action, then there should be some evidence, shouldn’t there? Furthermore, if these estate agents are members of professional bodies, then they will face disciplinary action to ensure that it does not happen again.

In terms of guide prices, there are many specific instances where properties sell at multiples of the advertised guide price. But the bigger picture paints an entirely different scene. In a study of over 5,000 auctions covering the past 10 years, it was found that the actual sale price at auction exceeded the guide price by an average of 26%. Looking at comparable data for private treaty sales, it was found that guide prices were exceeded by an average of 14% for the same period. This study adjusted for house quality and other property related characteristics, indicating that auctions are a better method for selling houses at a premium. But is this enough of a difference to justify regulation? Perhaps, but there are other issues with auction properties that suggest that guide and sale price differences only give a glimpse into what is actually happening.

There is also significant evidence that auctions can create higher prices for a variety of psychological reasons. Many economists have noted that the competitive nature of auctions creates an atmosphere where there are higher bids for an asset than would be the case in another sale method. Also, auctions are a more transparent sale method, where the success or failure of a particular bidder can be seen immediately and quickly. Experimental game theory suggests that where people have invested significant time and energy into a process, they are less likely to give up on the desired outcome in order to justify their pre-auction efforts.

All of these observed behaviours indicate that auctions are unique on several levels

and that they can take on a life of their own where you have two or more people competing for a particular house.

Additionally, sellers, not the estate agents, set the reserve as the minimum price that their house will sell for. While they may take the advice of their estate agent, it is ultimately the sellers who determine the minimum level that a house will sell for on the day. As further evidence of the special nature of auctions, just over 30% of all Dublin auction properties in the past 10 years were withdrawn before ever reaching the guide price. Similar results for private treaty sales found that less than 5% of properties were withdrawn from the market after the guide price had been reached.

GREATER DUBLIN It must be remembered that properties going to auction, more often than not, represent the higher end of the market in Greater Dublin. Just over 90% of properties going to auction are marketed towards those trading up rather than first time homebuyers. Outside Dublin, there are few auctions and most of these are reserved for large country houses with significant grounds. So, the logic goes that in order to protect experienced home purchasers from trading up to higher end properties in Greater Dublin, we need to regulate the entire industry throughout the entire country! It does not appear to matter that this could make transaction costs higher for everyone selling a home through an estate agent. It could also increase the cost for first-time buyers. We need to protect existing homeowners who want to trade up and first-time buyers from paying even higher transaction costs. The proposed idea sounds remarkably like a strategy of trying to get rid of a fly using a bazooka!

The allegation that estate agents are manipulating the property market in order to increase their fees is simply folly. This argument assumes that estate agents rather than the market set the prices for houses.

If that were the case, then estate agents were not doing a very good job in the late 1980s and early 1990s when they had little or no business because houses couldn’t be given away!

Agents work for sellers and if they can maximize the price, then they have a happy client. How many of you have had clients say that they would not accept a higher price once the guide had been reached if there was still interest by other parties?

Not many. After all, why should people use estate agents if they don’t feel that they assist in maximizing the price for their

properties? They should not, because it is possible, but not advisable, to sell a property privately without the use of an estate agent.

While the foundation for this debate on estate agent regulation is built on very shaky ground, there is a significant case for estate agent regulation and many reasons for estate agents and professional bodies to support it. For example, in a recent survey conducted in the UK, estate agents were rated just above used car salesmen at the bottom of a list of professions where the public was asked about trustworthiness.

Now Irish estate agents would possibly fare better, but there is a widespread perception that estate agents are simply ‘rogues and chancers,’ likely due to the rhetoric that commentators mentioned above make without challenge.

Licensing, based upon minimal educational criteria and an examination, could possibly go a long way in overcoming this perception. If regulation requires this, then it is good for the profession.

OTHER STUDIES It is not possible to know at present what will result from the deliberations on the report regarding estate agent regulation, but there are some directions that, based upon studies in other countries, should not be considered.

For example, licensing firms rather than individuals has the result of allowing individual agents to continue as usual in sharp practice and to hide their behaviour from their employer. It also hands incumbent advantages to firms that initially are granted licences and leads to less competition in the marketplace. Less competition usually means higher fees.

But before you start celebrating, it must be realised that high fees can be bad for

business, since it is the reasonable level of fees that ensure that estate agencies are used in a high percentage of all property transactions. In those countries where fees are high, estate agents are used in as few as 30% of all property transactions since their fee level does not represent value for money.

So how high should educational requirements be? It must be mentioned at this point that in an international survey of estate agency licensing and professional body membership requirements, the educational programme required for IPAV membership rates very highly as far as the time required and the skills taught. The IPAV educational programme should provide an example from international practice on how individuals should be educated prior to licensing, especially in relation to the Code of Conduct among members.

Based upon these findings, it would be wise for those involved in recommending a regulatory regime to the Minister to suggest individual agent licensing and use a stringent educational programme combined with experience similar to that done by the professional bodies that exist. The arguments on which this review of the estate agency business has been based are flimsy at best but it could result in an improved perception of estate agents and more business for all. However, if the recommendations act as a barrier to selling properties in the most efficient manner and significantly higher fees in the selling process, using estate agents, then the result could be that more people would decide to market their properties without estate agents and there would be more of a free for all in the unregulated marketplace.

It seems ironic that the critics attempting to penalise estate agents for marketing property effectively for their clients may be handing estate agents a golden opportunity to improve their image and continue doing their jobs better than before.

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LEARNING A DUTCH LESSON!

AFTER A RECORD-BREAKING BOOM THROUGHOUT THE 1990S, THE DUTCH ECONOMY CRASHED IN 2001. BUT, AGAINST THE ODDS, ITS PROPERTY MARKET HAS MANAGED A RELATIVELY SOFT LANDING. PETER CLUSKEY LOOKS AT THE LESSONS FOR IRELAND.

The Irish property market has begun to slow down. All the indications this Autumn are that the era of double-digit house price inflation is finally at an end, with Bank of Ireland Global Markets forecasting an average price increase of five percent during 2005. It’s clearly a slowdown, but will it all inevitably end in tears? Does burst inevitably follow boom? Not inevitably.

Three key economic factors continue to underpin the housing market in Ireland and, happily, none of those shows any sign of faltering as the year enters its final quarter: Demand for housing remains strong, employment growth remains healthy and wage inflation remains solid. Not exactly a recipe for a crash.

The problem is that there are no guarantees of a soft landing either. But what we can do - as an exercise in reassurance, perhaps - is look for evidence of a European precedent.

And in The Netherlands we may have found just that.

So, consider this: For more than a decade Holland experienced some of the biggest house price increases in Europe, powered by record economic growth and rapidlyexpanding private consumption. Sound familiar?

Then, just as predicted, the boom ended.

And now the economy is in the doldrums, with growth at a virtual standstill for the third year running. Evidence, yet again, that every economic up-cycle is invariably followed by a down-cycle and that every economic miracle finally runs into the sand…

GROUND TO A HALT Ask a statistician and he’ll tell you the great Dutch house price boom ground to a halt

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officially in 2001. Since then, the country’s economic performance has been the mirror image of the first years of the ‘Nineties.

Instead of being amongst the best, it’s been amongst the worst in the EU, dogged by falling competitiveness and an unexpected burst of inflation.

Not surprisingly, the ‘Nineties’ boom was greatest in Amsterdam, which accelerated away from cities like Rotterdam and The Hague. The parallels with Dublin are clear.

But by 2003, the Amsterdam market was one of the softest and prices nationally have converged slightly as a result.

Unemployment has risen by an astounding two-thirds in just three years. After such good times, the Dutch find it difficult to believe.

Dutch economists and estate agents predicted last year that the country was beginning to climb out of the slump.

Nonetheless, the Central Bank of the Netherlands was still highlighting the potential risk to financial institutions of consumer mortgage defaults late in 2004 – indicating that the housing market remained in uncertain territory.

The slump has awakened memories of the long decline in the housing market from the mid ‘Seventies to the mid ’Eighties, when prices plunged by 15 percent in real terms.

Home-owners were caught in the negative equity trap and market transactions in many areas came to a virtual standstill. As with windmills, what goes around comes around.

But one thing is different this time. Despite the desperate economic decline, property prices have managed to buck the trend … just about. They’ve continued to rise gently in nominal terms. When inflation is taken into account, there was a slight drop in 2003, but not in 2004, and for the rest of this year both the economy and house prices are expected to remain “slack” - and things could be a lot worse than “slack”.

So, instead of the nightmare scenario, it’s been the least-worst outcome. It’s been the “soft landing” that Ireland is hoping to emulate.

LOW INTEREST RATES As in Ireland, low interest rates were the key factor in Holland in sustaining a high level of housing demand. At the same time, in the mid ‘Nineties, the Netherlands switched to a planning policy which severely restricted suburban growth. The result was countercyclical: It reduced housing supply at a time when demand was growing rapidly, encouraging even greater price increases.

That policy has now been eased slightly. But the Dutch government’s budget statement this year forecast that 420,000 homes will have to be built between 2005 and 2009, and so, once again, the pressure is on to find suitable land.

However, scanning the agency windows and talking to the estate agents themselves, it’s clear that prices for the majority of apartments or suburban houses haven’t been knocked down to ensure a quick sale.

Because the Dutch market has never known over-supply, vendors would rather sit and wait than take a hit where it hurts – in their pockets.

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local insurance executive, Hans de Vlam.

“For most people it’s normal to drive an hour-and-a-half to work but any more and it’s a problem. It’s the same in any country.”

The Dutch property market may be slumped but even so it’s still a better bet than most other investments, according to the ROZ/.IPD Index. It shows that, over the past nine years, property has delivered average annual returns of 11.9 percent – comfortably ahead of equities and bonds at 9.5 percent and 7.9 percent respectively. The message is clear: Even when times are tough, it’s hard to beat bricks and mortar.

LIVING IN D 4!

‘TE KOOP’ AND ‘TE HUUR’!

Driving through the Dutch countryside, one is struck by the number of “Te Koop” and “Te Huur” (For Sale and To Rent) signs.

“Verkocht” (Sold) is relatively rare.

“In the south of the country, prices have remained relatively stable, though a sale may take quite a bit longer”, says Aart Hordijk of ROZ/IPD Dutch Property Index.

The average price of building land is still very high, about €300 a square metre. And a luxury apartment in one of the more sought-after areas, where land is extremely scarce, can easily cost around €10,000 a square metre.

TE KOOP (FOR SALE)

In the pecking order, Amsterdam remains on top, with the satellite towns of Naarden, Bussum and Hilversum - the latter home of Dutch State TV and radio - difficult to buy into, but a good investment. Eindhoven is a solid middle-class city, with a university and two major industries, DAF and Philips, which continue to support the local market. By comparison, Rotterdam, a hub of the oil industry and a major port for Germany, has suffered when it comes to foreign buyers as a result of a growing reputation for antiimmigrant tensions.

To the south, The Hague, seat of Government and home to a selection of Dutch Royals, attracts politicians and the diplomatic corps. Money attracts money, and here the Wassenaar area, in particular – the Dublin 4 of the Netherlands – is prime real estate. East of Amsterdam, prices around Apeldoorn are very slightly more modest.

And around the quiet town of Epe, set in the beautiful wooded countryside of the Veluwe, there’s a good range of property in an idyllic rural setting.

“Places like Epe are still regarded as being within striking distance of Amsterdam and the other major cities in the south”, says

And that’s a message few would argue with in Ireland - where property values in Dublin have grown by an average of nearly 400 percent in real terms over the period 1976 to 2004, according to NCB Stockbrokers.

We’re talking about a capital city in which people are prepared to pay an astounding €17 million an acre for the privilege of living in a Dublin 4 semi-d.

We’re talking about a city where returns in the commercial property sector rose to 11.5 percent in 2004, outperforming the residential sector for the first year since 2000. And this year that 11.5 percent is expected to shoot up to 15 percent with a recovery in the office sector.

At the same time, the mortgage market here continues to perform ahead of other economic sectors, with new lending activity still particularly strong. According to figures from the Department of the Environment, the number of new mortgages broke the 100,000 mark in 2004 for the first time, an increase of almost 20 percent on the previous year.

And, with only a few months to go, it’s already being estimated that by the end of this year, gross mortgage lending will be valued at €19 billion - an increase on last year’s value of 11 percent. To feed that market, 74,000 new houses will have been completed by the end of the year, with the semi-d pulling well ahead of the apartment as the most popular new build, accounting now for one in two completions.

Reading those figures, it’s difficult to imagine how such a voracious market could do anything except continue to boom.

It’s difficult to imagine a few pesky, persistent, interest rate rises leading to just a touch of wariness, and a slowdown in housing demand at a time when supply is at an all-time high. It’s difficult to imagine consumer confidence beginning to soften as a result of rising oil prices and jittery markets.

Maybe it could happen in Holland. But it could never happen here!

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A LETTING AGENT TO WHOM PROPERTY DEALINGS CAME NATURALLY! CONTINUING THE SERIES ON THE CAREERS OF FORMER IPAV STUDENTS, PROPERTY PROFESSIONAL EDITOR TIM RYAN TALKS TO DOREEN MULHOLLAND OF LET’S MOVE PROPERTIES.

programme very good as those who wished to opt out after two or three years could do so and still have something solid to show for it. Some students, for example, needed to start work and to earn some money. That was what I liked about it. The teachers were excellent and all the subjects were very topical. All the teachers and tutors in both Dún Laoghaire and Cork were always available to give a helping hand whenever you needed it.”

Dealing in houses and properties generally around Dublin came naturally to Doreen Mulholland who runs her own letting agency Let’s Move Properties in Blackrock. When growing up, her family moved home nine times before finally settling in Shankill in South Dubin.

She was born in Belfast where her father was a Sports & Maths teacher. When she was very young, they moved to Dublin to allow him take up a position as sports teacher in St Andrews College. From there, he moved on to head up the Education department of Shangannagh Castle and remained there until its closure last year.

“As we moved about so much, I spent many Saturdays looking at various houses as the family needed more space. Then as we started to leave home, the downsizing move started,” she says. “So, it was sort of inevitable in a way that I moved into the property area.”

In Dublin, Doreen attended Rathdown College up to Junior Cert level, then Alexander College in Milltown before studying for the Leaving Cert at Newpark College.

A PLACE IN COLLEGE Unsure what career to take after leaving school, Doreen took a year off to think about things, working in various temporary jobs. At the time, the IPAV course was in its infancy in the Senior College, Dún Laoghaire. Doreen applied and got a place.

After two years there, she went on to study for a Diploma in Cork College of Commerce and finally to the University of Glamorgan for her Degree.

“I found the structure of IPAV’s education

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She particularly enjoyed studying Statistics and Construction Studies. While she found Valuation quite technical, it was immensely valuable as training for her later career.

Having obtained her Diploma in Cork College of Commerce, she was delighted to accept the opportunity to go and study on a university campus in Glamorgan. It was for her “the icing on the cake.”

All these years were, of course, an expensive time for Doreen. While her parents helped out as much as they could – there were two older children in the family – she worked part-time on a regular basis to help make ends meet.

While life on a university campus was far different from anything she had experienced before, she said all of the 11 students who went had been very well prepared for it in Cork.

“They had a very good tutorial system, whereby you were assigned to other students and we got together twice a week to discuss topics. It was similar to a brainstorming session, which we all found very valuable.”

PROPERTY SLUGGISH Back in Dublin with her degree in 1996, Doreen found the property market was not very buoyant - but that all was about to change. Along with a few to friends, she decided to go backpacking to Australia, a plan that many students only dream about.

By the time she got back a year later, the property market had begun to seriously take off and it was an ideal time to seek a placement. She sent her CV around to everybody listed in the Golden Pages and waited. She was offered a position with an

independent agent, Peter Lawlor & Associates in Dún Laoghaire which was near where she lived at the time.

“I thought that by working in a smaller agency I would learn more aspects of the business rather than being in a big office where I might be just in one specialist area.

As it happened, I ended up working there for five years. And I learned an awful lot about letting, sales, management, even down to invoicing and office management, all of which is very important.”

In 2003, she was offered a position in two other agencies but, aided by encouragement from family and friends, decided to set up on her own.

“I had picked up a lot of contacts over the previous five years and decided to set up a letting agency myself. I started off working from the third bedroom in the house (as many young entrepreneurs do!) A number of contacts had properties and they started me off in the business. After a time, I managed to get a small office upstairs in Blackrock.

However, I was desperate to find a street front location somewhere on a ground floor so that I could advertise my business and display properties to rent.”

Eventually, a fellow agent, Terry Halpenny told her he was moving to another premises in Blackrock and Doreen took over his old office at 9 Temple Road, which she finds ideal.

BRAND RECOGNITION Getting brand recognition for her name was a major priority for Doreen and she invested heavily in advertising over the first two years, ranging from leaflet drops in local estates to advertisements in The Irish Times.

However, the majority of her business came – and still does – from referrals from other clients.

Doreen also does occasional sales for clients who wish to dispose of properties but her business is primarily focused on the letting market.

Doreen finds that a full management service is becoming increasingly popular with clients who prefer not to have any direct contact

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“Getting a good handyman I found the most difficult of all,” she says. “To do a small job can be quite expensive because they have to drive to the property, assess what is required, find the materials and then do the job. Very often, it takes most of a day to do quite a small job. And all the time the clock is ticking!”

with clients (tenants) but to remain at one remove. In such situations, Doreen looks after everything from repairs and renovations to interior fit-out and right down to selecting the tenant. A percentage of the annual rent is charged to the landlord and any additional services are extra in the form of an ‘overseeing charge’.

“If there is a problem, for example if a washing machine breaks down or the tenant hasn’t cut the grass, many owners find it much more convenient to have me look after all that end of things for them. We also do routine inspections of the property, to ensure it is being well maintained by the tenant.”

FINDING A HANDYMAN! Since setting up business, Doreen has built up a good base of handymen, electricians, plumbers, gardeners and so on.

Full details of the services are on her website www.letswmoveproperties.ie which was custom-built to her requirements. It is user-friendly and updated on a regular basis.

“I find the website is very useful for people making initial contact but to move things along either with a landlord or tenant, you must have a one-to-one meeting whereby their individual requirements are identified.”

The market can vary quite a bit. Recently Doreen let a period property in Blackrock to a company for €4,500 per month as it was ideally suited to the requirements.

“These days all property to rent must be presented in impeccable condition,” she says. “Firstly, it must be spotlessly clean, with the decor in reasonably good order. It must also be fully equipped and preferably have off-street parking. If a property is presented well and priced properly, it will rent.”

Luckily for Doreen, bad tenants have not been a major headache. This she attributes to the rigorous vetting system whereby all prospective tenants must provide a written reference from their employer, a previous landlord and their bank.

This year the market has been quite buoyant, according to Doreen. While rents had dropped in 2004, they are steady again and, in her opinion, unlikely to fall significantly for some time.

Overall, it’s a very busy and hectic lifestyle – and certainly not one for the fainthearted.

While Sundays are free, most Saturdays are interrupted with meetings of one kind or another. It’s all part of the job of building up a business.

Typically, a one bedroom apartment in south Dublin will rent for anywhere between €900 and €1100, depending on location and condition. A two-bed will fetch between €1,100 and €1,400 while a three-bed semi will range from €1,200 up, depending on size and condition.

Last year Doreen married Jan who works in computers and who, to date, has shown little interest in getting involved in the property business, she says! But it’s one which Doreen Mulholland loves and one which she hopes will grow vigorously in the years ahead.

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A NEW LEGAL GUIDE TO BUYING AND SELLING A HOME MANY ASPECTS OF THE LAW ARE INVOLVED IN THE SALE AND PURCHASE OF HOUSES AND APARTMENTS. THESE INCLUDE THE LAW OF LAND, CONTRACT LAW, CONVEYANCING, LANDLORD AND TENANT AND FAMILY, EACH OF WHICH IS SUBSTANTIVE IN ITS OWN RIGHT. LATTERLY, IT IS INVOLVING EUROPEAN LAW MORE AND MORE. TIM RYAN GIVES SOME RELEVANT EXTRACTS FROM A RECENTLY PUBLISHED BOOK ‘BUYING AND SELLING A HOME IN IRELAND: NEED TO KNOW GUIDE’ BY DAMIAN MCHUGH BL.

THE SOLICITOR’S DUTY OF CARE As with other professionals providing a service in return for a fee, there is a contract between the seller and solicitor or between the buyer and solicitor. The solicitor owes a duty of care to the client.

If the solicitor breaches that duty of care and the client suffers damage as a result, then the solicitor may be sued for professional negligence. All solicitors, like others, must take out professional indemnity insurance to cover them in the event of being sued…

But what is the standard of care that the law imposes on a solicitor in dealings with a client, whether a vendor or a purchaser?

According to principles laid down in a Supreme Court judgement in an appeal decided in the mid 1980s: “The general duty owed by a solicitor to his client is to show him the degree of care to be expected in the circumstances from a reasonably careful and skilful solicitor.

Usually, the solicitor will be held to have discharged that duty if he follows a practice common among the members of his profession….Conformity with the widelyaccepted practice of his colleagues will normally rebut an allegation of negligence against a professional man, for the degree of care which the law expects of him is no higher than that to be expected from an ordinary reasonable member of the profession or of the speciality in question.”

In other words, a solicitor holding himself or herself out a as specialist in conveyancing will be simply judged according to the degree of care expected from a solicitor with the conveyancing speciality….

CERTIFICATE OF TITLE Lenders now allow the purchaser’s solicitor to take responsibility for having the mortgage duly executed by the borrowers, stamping and registering the borrower’s title and providing a certificate of title to the lending institution. This practice was adopted as a result of public pressure on lenders, especially building societies as buyers had to pay not only their own solicitor on the purchase of the property but also the building society’s solicitor who had independently investigated the title to the property being purchased. This was very unfair and added, what many viewed, as an unnecessary expense to the already heavy financial burden carried by buyers….

BUYING ABROAD There is always a chance of a conflict of interest where the seller and buyer agree to engage the same solicitor for the transaction. The public must be aware of this potential for conflict, which could cause either party considerable financial loss at the very least. While this is important here in Ireland, it is even more imperative when people are buying a house or apartment in Spain, France, Hungary, Bulgaria or wherever.

The temptation to agree to the suggestion The Director of Consumer Affairs, Carmel Foley with the author, Damian McHugh B.L., at the launch of ‘Buying and Selling Home in Ireland’.

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time comes to buy, sell or lease property, it will be vital for the client and the solicitor to know what type of interest in the particular property is involved. Estates in land fall into two categories, freehold and leasehold estates. They are two very different concepts.

Leasehold is a normal contractual arrangement which must contain all the necessary ingredients of a valid contract to enable the property transaction to be legally valid. There are, in fact, several types of leasehold estate, which are classified in four main categories:

of the developer’s sales representative to use their own local lawyer, allegedly at a cost and convenience saving, could end up costing the buyer considerably more, not only in financial terms but frustration because of delay in reaching the closing and an absence of information about how the purchase is progressing.

How can an Irish resident possibly ‘police’ a transaction being conducted in a different country, while having no knowledge of local laws and while dealing with people with a few words of English or no English and an agent who doesn’t respond to telephone calls from Ireland? The pace of progress in getting things done can be astonishingly slow in continental countries especially.

Most firms of solicitors in Ireland use agents in other countries to deal with their Irish clients’ business in a foreign country in the same way as country solicitors use town agents to transact their business in the Four Courts.

ROOTS OF TITLE …Getting good title depends on the quality of the root of the title being offered. When conveyancers speak of the root of the title, they mean the important document from which the seller or vendor intends to demonstrate that the title to the property starts from. The remainder of the title remains rooted in that first document.

The type of the particular title in each case will vary to include short and long leaseholds, fee farm grants which involves the conveyance of a fee simple subject to the payment of a perpetual rent to the grantor and his successors to title, life estates, leases for lives renewable forever and other strange sounding interests…..

LEASEHOLD INTEREST… The difference between freehold property and leasehold property is vital. When the

* A leasehold estate that is granted for a certain term. This type is common in this country with very long terms of years e.g.

999 years and 10,000 years. A vigilant conveyancer must establish how many of the 999 years of the lease, for example remain before the lease is determined or ended. Legally, the purchaser of a leasehold property is merely a tenant of the party who granted the lease or his successors. However, because of the long number of years that the lease has to run, the reality usually is that the purchaser will hold the property for not merely his or her own lifetime, but also that of many succeeding generations. Apartments, so many of which are being released onto the market, are usually leasehold. * A second category of leasehold estate is a periodic tenancy. This is also a fixed term tenancy with a minimum period of one week or one month which will continue for successive periods until either party to the agreement determines the tenancy according to its terms. * The third category is a tenancy at will.

This tenancy may continue indefinitely but can be determined by either party at any time. Because of this, the tenant’s tenure is uncertain and insecure. * The fourth category of leasehold estate or, more correctly, interest, is a tenancy of sufferance. It arises where a tenant fails to quit or leave the premises at the natural end of the tenancy but remains on or ‘holds over’ without the landlord’s agreement. The only reason that he is not classed as a trespasser is because his entry onto the premises was lawful at the beginning of the tenancy. The tenant remains therefore at the landlord’s sufferance.

FREEHOLD INTEREST There are three main types: fee simple, fee tail and life estate.

* The fee simple is the largest estate and is the nearest to absolute ownership. The reason that it is not quite absolute is because of the theory of tenure under which the State could take over the property as where the present owner of the property dies without making a will (i.e. intestate) and there is nobody left to take it over. The State may become owner in those circumstances. * The fee tail is a lesser estate in property.

It is a relic of an era when land was regarded as the most secure source of wealth. * The life estate is an estate that lasts for the duration of someone’s life only.

A book could be written about each and every category of freehold and leasehold interest, such is the complexity and history of these very important interests under which property has been, or is being, held in Ireland…….

EUROPE The obligation on the sellers of houses (and apartment blocks) to furnish an energy performance certificate to buyers is not yet part of Irish law but it must be so by January 4, 2006, the date on which Ireland is legally bound to transpose the EU law into domestic law. The law Directive has an in-built provision, which allows Member States a period of three further years from January 4, 2006, in which to transpose the practical implementation of the more complex provisions into their own domestic law. This extra period, which is discretionary to each Member State, is allowed “because of lack of qualified and/or accredited experts.” These provisions concern: * The energy performance certification ‘labelling’ of newly constructed buildings and existing buildings (when existing buildings are sold or let). * Improvement of the energy efficiency of boilers, and * Inspection of air conditioning systems The objective of the new law is to promote the improvement of the energy performance of buildings within the community, taking into account outdoor climatic and local conditions as well as indoor requirements and cost-effectiveness. © First Law Limited * ‘Buying and Selling a Home in Ireland: Need to Know Guide’ by Damian McHugh BL is published by First Law.

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‘OPEN DAY’ FOR COLLEGE OF ESTATE MANAGEMENT The College of Estate Management in Reading University held an ‘Open Day’ in the Mont Clare Hotel, Merrion Square on Thursday, September 15.

The College offers distance learning courses at every level to the construction and property industry.

Graduates of IPAV's part-time certificate course may top up the Certificate award to a BSc in Property Management through the distance learning programme They are exempt from six of the sixteen modules which are studied over a three year period. Academic staff from the college were in attendance along with representatives from IPAV. Further details on the course are available from Anita Akin, Marketing Assistant, The College of Estate Management, Reading. T: 00.44 118 921 4634 F: 00.44 118 975 5344 E: a.akin@cem.ac.uk W: www.cem.ac.uk Looking at the Degree Prospectus Reading University Campus

Listening to the Presentation...

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www.baile.ie *upload a minimum of 10 properties

IPAV Chief Executive Liam O’Donnell with Paul Batho

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IPAV ORGANISES PUBLIC SEMINARS IPAV IS ORGANISING THE FIRST OF A SERIES OF THREE SEMINARS WHICH WILL OFFER INDEPENDENT ADVICE TO HOME-BUYERS, BOTH FIRST AND SECOND-HAND. The initial seminars will be held in Dublin, Cork and Galway, but it is intended to extend these to many more rural towns in the future.

“IPAV has long felt that members of the public out there need fully independent advice on all aspects of house buying and we are in an ideal position to provide it,” says IPAV Chief Executive Liam O’Donnell. “Buying a house is the biggest investment most couples or individuals make during their lifetime and these days, more than ever, it is vital that they get the best independent advice out there in the marketplace.”

At each seminar there will, firstly, be a short presentation by an IPAV member on the role of the auctioneer and the standards of service members of the public can expect. There will also be advice on why somebody, when buying or selling, should use the services of an auctioneer or estate agent who is a member of a recognised institute. IPAV has long put in place an appeals system should any customer have grounds for complaints.

Secondly, a lawyer will outline the role of the solicitor in the entire conveyancing process and the pitfalls that should be taken into account. Explanations will be given as to why the procedure can sometimes take far longer than was initially anticipated and steps that should be taken in regard to the correct proof of title.

Finally, an independent mortgage expert will give advice on the best approach to adopt when shopping for a mortgage. In addition, each seminar will have an independent chairman who will chair a Questions & Answers session at the end of each presentation. All seminars will commence at 7.00pm and end by 9.30pm.

The first Seminar will be held in the Westbury Hotel, Dublin on Thursday, October 13 and will be addressed by Martin O’Mahony, FIPAV, Fionnuala Murphy, Orpen Franks, Solicitors and a representative of Simply Mortgages. The Seminar will be chaired by Alan McCarthy, Chairman of the Review Body on Auctioneering which recently completed its report.

Said Liam O’Donnell: “This is another first for IPAV in extending our range of services both to members and the public at large. I feel the line-up of speakers we have in place will make it a very worthwhile occasion for people who attend.

The dates and venues are as follows: Dublin

Westbury Hotel, Grafton St - Thursday, Oct 13

Cork

Imperial Hotel, South Mall - Thursday, Oct. 20

Galway

Great Southern Hotel, Eyre Square - Wednesday, Nov. 2

PERESONALISED IPAV BRASS PLATE IPAV has secured a deal with brass plate makers Cuspal for the supply of plates specifically tailored to IPAV members. They measure 330mm x 200mm, are etched and infilled in black on a wooden backing panel.

Purchasing members will also be supplied with fitting instructions. The price per plate is € 215.00 plus 13.5% VAT. An installation service is available on request.

Further details may be had from Robbie Kelly, Sales Executive, Cuspal Ltd., Greenhills Centre, Greenhills Road, Tallaght, Dublin 24

MEMBER SEMINARS As part of its Continuing Professional Development courses for members, IPAV is organising three seminars in the Autumn. A further three will follow in the Spring of 2006.

The Autumn seminars will deal with aspects of the Private Residential Tenancies Bill and Apartment Block Management.

The first seminar will be held in the Hilton Hotel, Charlemont Place, Dublin and will be addressed by solicitor Anne Colley, a former Dáil deputy and member of the Review Body on the auctioneering profession and Siobhan Kirwan, Managing Director, O’Dwyer Property Management, Sandyford Industrial Estate, Dublin 18.

The dates and venues for the seminars are as follows: Dublin Hilton Hotel, Charlemont Place Tuesday, Oct. 25 Cork

Imperial Hotel, South Mall Thursday, November 3

Galway Radisson Hotel Monday, Nov. 21 Further details will be circulated to members shortly.

IPAV BRASS PLATE! An. Auctioneer & Co Ltd

M.I.P.A.V

Ph: 01- 4634400 Fax: 01 - 4634441 Mob: 086 – 264193 the property professional

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A COURSE IN THE FINE AND DECORATIVE ARTS FOR YOU? Applications are currently being taken for IPAV’s unique course in the Fine and Decorative Arts. This course provides a unique opportunity for students who are interested in the Fine and Decorative Arts to pursue their interest in a supervised and structured manner.

For many, it may lead to a regarding career while for others, it may be the fulfilment of a personal ambition to develop and sustain knowledge picked up in an informal manner over many years.

The course, which commences on Monday, October 10, will run over three terms coinciding with the academic year. Hours of attendance are 10.00am to 4.00pm Monday to Friday on Mondays, Tuesdays and Wednesdays.

may be necessary.

As part of the course, students take slide tests, write essays and take part in group projects. Students are also required to submit a written dissertation on a subject chosen in conjunction with their lecturers which will be assessed by external examiners.

ENTRY REQUIREMENTS The scope of the course appeals to a wide range of interests and people of all ages participate. There is a minimum age limit of 18. No formal academic qualifications are required but prospective students will be obliged to show a broad, general level of education with specific interest in the art world.

AWARD On satisfactory completion of the course, a Diploma will be awarded by IPAV in association with the Irish Antique Dealers Association.

The principal areas covered are: 1. History of Furniture 2. History of Architecture and Interior Decoration 3. History of Painting 4. History of Silver 5. Introduction to Ceramics There will be study trips during the year to cover the main museums, art galleries and some historic houses. Occasionally, field trips to collections and historic houses outside will be made for which a whole day

Application forms and further details are available form the Course Presenter Liam O’Donnell at IPAV Headquarters, 129 Lower Baggot St., Dublin 2 T: 01 – 6785685 or e-mail: info@ipav.ie

ADVERTORIAL BORD GÁIS NETWORKS – TECHNICAL SUPPORT & PUBLICATIONS. Bord Gáis Networks has just revised and published its Technical Manual and CD. The publications contain the most up-to-date guidance on best practices for designing and installing natural gas in new developments.

The objectives of the CD are to provide solutions for every eventuality that may arise at the design stage of projects and to make it as easy as possible for the Construction Industry as a whole to organise a connection to the natural gas network.

The guidance documents, design advice and gas appliance options are all incorporated into standard templates which can be accessed via the CD allowing the designer to tailor technical information, drawings and best practices to suit specific projects.

Bord Gáis Networks expect both revised publications to become valuable design aids for designers specifying natural gas. For additional technical guidance or Technical Publications, call 1850 427 737.

OBITUARY IPAV has expressed sincere sympathy on the death on Sunday, August 21 of former Fine Gael Dáil Deputy Liam Burke (77) who was a long-time Honorary member of the Institute.

Liam gave a great of commitment to all aspects of his public life including serving the people of Cork North Central constituency in Dáil Eireann for many years. A very popular, and outgoing individual, Liam played a pivotal role in many aspects of Cork and national life during his career.

He served as a member of Cork City Vocational Education Committee for many years and was Chairman for a time. In this role, he always promoted IPAV’s courses in Cork and attended many presentation ceremonies where he was always delighted to present parchments to successful students.

Since 1969, Liam was elected to Dáil Eireann eight times and twice to the Seanad before retiring from politics in 2002. He served under four Fine Gael leaders: Liam Cosgrave, Garret FitzGerald, Alan Dukes and John Bruton. His uncle, Tadhg Manley was Fine Gael TD for Cork South between 1954 and 1961. A high point of his career was 1984 when he was elected Lord Mayor of Cork.

Paying tribute to him, IPAV Chief Executive Liam O’Donnell said: “Liam Burke was a lifelong friend of IPAV’s. Both in the VEC as well as in the Seanad and Dáil Eireann, he always took an interest in the institute and promoted it whenever the opportunity arose. On behalf of all members of the Institute I wish to extend my sincere sympathy to his wife, Noreen and his daughters Catherine and Emma. Ar dheis Dé go raibh a anam.”

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ADVERTORIAL

PROPERTY ACQUISITION IN THE TELECOMS INDUSTRY Threefold Project Management Ltd. manages the site acquisition, design and construction of wireless telecommunications networks on a national and multi-national scale. Established in 2002, the company is one of the first Acquisition Design and Construction service providers in Ireland.

Ciaran Kelly, Acquisition Project Manager

One of the company’s major strengths is in the property and planning sectors, managing all aspects of the acquisition of wireless sites. This success in acquisition is founded on the employment of highly educated staff and the facility to tap into an extensive resource pool, resulting in an unrivalled knowledge base in every aspect of site acquisition and planning throughout Europe.

Site Acquisition within the telecommunication industry allows for the development of relationships across the property industry from, landlords, other auctioneers and valuers to multi site owners, planners and local representatives.

Negotiators acquire a complete understanding of the "inner workings" of commercial agreements along with a comprehensive understanding of the commercial property industry. The experience gained affords exposure to many facets of the property industry.

The role of the Site Acquisition Negotiator is a varied, challenging, and rewarding one. The fulfilment of the role relies on many of the attributes of current property professionals.

Typically members are IAVI or IPAV qualified with experience of property negotiations.

David Enright, Site Acquisition Negotiator joined Threefold in August this year, having completed an honours degree in Property Valuation in Estate Management at Limerick Institute of

Technology. “What attracted me was the challenge of working in this relatively new industry with cutting edge technology. The work involves meeting new people on a daily basis.

You certainly get to know the real Ireland, as my contacts would range over everybody from factory owners to farmers to managers in multinational companies.

“I’ve been given accountability for sites at an early stage, and after an intensive induction period, I now have the autonomy to negotiate within certain licence parameters. I am based in the north-west and enjoy the opportunity to travel in the area. The industry itself is one that offers huge potential for travel and work in different countries.”

With 30 acquisition professionals, the team is a fully integrated part of the Acquisition, Design and Construction organisation, liasing with relevant project teams and adhering to stringent time - cost - quality project management principals. Providing focus at every stage of the acquisition process, the team delivers high quality sites, whilst balancing project targets, planning requirements and considering cost implications.

Sinéad McEntee, Site Acquisition Controller joined Threefold in July 2003 as a Site Acquisition Negotiator after completing a BSc (Surveying) in Property Economics. “After on the job training I was given responsibility for a number of sites in the Dublin area. This involved negotiating with landlords, liasing with team members and ensuring project targets were met.

“In 2004 I was promoted to my present role which involves managing agents negotiating on the company's behalf. I really enjoy getting out of the office and meeting people. Back in the office there is a friendly atmosphere mixed with performance driven pressure.

“In any given week I deal with up to 50 different sites, and this involves contact with property managers, auctioneers as well as our own team members around the country. I don’t think there are as many jobs that are as challenging, interesting and varied on an ongoing basis.”

According to Acquisition Project Manager, Ciaran Kelly, another member of the Threefold team since its foundation, team work plays a major role in the success of the company.

Sinéad McEntee (2nd right) on team site survey.

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“The members of the Threefold team openly contribute and gather information within their own specialities and across the board to get results. Our team members bring a diverse set of experiences and perspectives and we

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ADVERTORIAL fundamentally believe that co-operative action produces superior results.”

Threefold operates in a demanding international environment. Threefold values individuals and recognises that a winning organisation is more than the sum of its parts. That’s why it has employed a unique blend of talented people in a dynamic, empowering setting, and an atmosphere that supports its core values.

Working for Threefold does require hard work and commitment. But the company in turn places a high emphasis on recognising talent and rewarding achievement. As a consequence, it offers a very dynamic and innovative work environment, one that continually seeks to develop professional and personal capabilities”.

David Enright concluding on-site landlord negotiations

Since 2002, Threefold has gone from startup to market leadership in project managing the roll-out of Wireless Telecommunications Networks. Its name is now synonymous with high technical capability. Clients are solid, blue-chip enterprises that expect nothing less than the highest standards of service, creativity and insight. Threefold’s network solutions are based on both a strong technology platform and the ability of its talented people to understand each client’s requirements and the way they do business.

The company contains a wealth of expertise based on the experience and background of its key management and staff. In addition the company places a high emphasis on

Suppliers of contract and permanent staff to

ethical standards in all its operations, in particular ensuring its’ staff has a thorough knowledge of applicable planning, design and health and safety legislation at EU level and at national level in each country in which it works.

According to Tony Killarney, Chief Executive Officer, “Threefold is successful because we build long-term partnerships with our clients, by providing flexible, safe, effective solutions and delivering projects on time and to budget.

“Each project is carefully monitored according to a scorecard agreed in advance with the client to achieve optimum results.

“In addition we maintain open, close and regular contact with local authorities, semistate companies and planning authorities.

This has ensured the smooth, efficient and speedy implementation and roll out of projects.

“Our essential focus is on getting the job done. To this end, each team member is extensively trained in our unique project management methodology," he says.

As a result Threefold has gained a reputation for providing a first-rate highly professional acquisition and planning service and being a client-orientated, independent organisation.

Continuous improvement and provision of exceptional service to our clients in a cost driven environment is a key priority for the company.

For your next career move call us now!

The Irish telecoms and property market and proud to supply Threefold Project Management Ltd

Sourcing and providing property professionals across Ireland ranging from IPAV graduates to senior property managers.

Tel: +44 (0)870 443 0453 Recruit Telecoms Ltd Bank Chambers 36 Mount Pleasant Road Tunbridge Wells Kent TN1 1RA cv@recruittelecoms.com

www.recruittelecoms.com

We are currently recruiting for: ▲ ▲ ▲ ▲

Negotiators/Acquisition Surveyors Town Planners Design and Build Structural Engineers

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HELPING PROPERTY ACHIEVE ITS FULL POTENTIAL! EMER O’FLANAGAN SPOKE TO A WELL-KNOWN FURNITURE FIRM WHICH OFFERS A ‘PROPERTY STAGING’ SERVICE TO AUCTIONEERS AND HOUSE SELLERS. For any auctioneer or estate agent selling a property and looking to achieve the best possible price, presentation is everything.

These days it is possible to hire interior décor specifically for the period of showing the property to the public. It is a service which many auctioneers and estate agents increasingly recommend to clients.

Flanagans of Mount Merrion, Dublin and Buncrana, Co. Donegal offer a ‘Property Staging’ service for clients looking to highlight the potential of a property and maximize the sale price.

Peter Flanagan and his team run a successful furniture business which also includes furniture hire and a full delivery service. Started in the 1940s, the firm is a family-run business and opened for business in Mount Merrion 23 years ago.

Today, 54 staff are employed specialising in antique restoration and reproduction, modern furniture production, pianos, beds and interior design.

‘FAR AND AWAY’ Flanagans is not to be confused with a furniture shop – it is a great deal more. For many years, RTE sourced “prop” furniture from Flanagans. The firm also provided the magnificent grand piano in the Tom Cruise/Nicole Kidman film “Far and Away”, which was subsequently burned in a dramatic scene. It was from these beginnings the concept of “Property Staging” was born.

Property Staging involves clients renting furniture and accessories for a period in order to enhance the presentation of the property they are selling, thus increasing its appeal to potential buyers. This unique service appeals to investors looking for a turnkey option without the hassle of having to purchase furniture and subsequently having to sell it on. It has a particular appeal to developers. The service is also on offer for holiday homes in Ireland and, significantly, they will also travel abroad.

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Property Staging is not confined to wealthy clients or investors. Individuals and auctioneers selling property are selling a lifestyle – they are hoping prospective purchasers will form an emotional attachment to their property. This, as any agent will tell you, will be all the more likely to happen if the property is “dressed” appropriately. This is particularly true where a property doesn’t stand out and needs an extra ‘push’ Property Staging can also incorporate painting and decorating and even garden make-overs! This level of service requires a minimum time of four weeks notice prior to going on the market.

5 % INCREASE Says Peter Flanagan: “In practical terms, the vendor could expect an increase in the sale price of the property of 5% in return for an outlay of 0.75 % of the house price.

In the event of the purchaser expressing an interest in buying the furniture, we will come to an arrangement on the rental costs with their client.”

In recent years Flanagans has furnished a number of prestigious properties in Dublin, such as a period property in Monkstown Co. Dublin with a guide price of €4m. It sold for €5.5m.

“Our experienced staff work closely with clients when preparing a property,” adds Peter Flanagan. “They offer consultations on-site and are on hand throughout the project and to the final dressing stages. Our firm is a company focused on providing excellent service to clients.”

Today, there are three interior design consultants based in Dublin and one in Donegal.

Their confidence in their future success can be measured by their recent acquisition of the Fruit of The Loom building in Buncrana. * Flanagans of Mount Merrion and Buncrana can be contacted at 01 2880218 or visit their website at www.flanagans.ie

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HOUSE PRICES RISE BY 6.6% OVER 12 MONTHS– SURVEY was 2.5% and 1.5% respectively. The equivalent rates in 2004 were 5.7% and 3.7%. New and existing house prices grew by 9.0% and 6.4% respectively year on year to May 2005. The equivalent year on year rate of price growth to April 2005 was 9.2% and 6.4% respectively, while growth to May 2004 was 11.9% and 12.0%.

ONE IN EVERY TWO PURCHASES

House prices rose by 6.6% over the twelve months up to the end of May, according to a permanent tsb/ESRI survey.

COMMUTER COUNTIES: - LOUTH, MEATH, KILDARE & WICKLOW

The figure was lightly up on the figure for April 2005 (6.5%) and significantly lower than the equivalent growth rate to May 2004 (11.5%).

Growth in the first five months of this year has been relatively strong in the Commuter counties, up 3.1% to May 2005 compared with a May 2005 growth rate of 2.6% in Dublin. The equivalent growth rate to May 2004 was 3.2% for Commuter counties.

Measuring price movements over this year, from January to May inclusive, the index recorded national price growth of 1.8%, less than half that recorded in the same period last year (3.7%) and the lowest first five month increase in 9 years of recording.

Commenting on the results, Niall O'Grady, Head of Marketing at permanent tsb bank said: "While the figure for national house price growth continues to be exceptionally low, there are some significant variations with different sectors of the market. In particular, it’s striking that house price growth for First Time Buyers was 3% over the first five months of the year - compared to just 1.5% for second-time buyers. The FTB sector continues to warrant careful attention".

"This month's figures also highlight the growing disparity between the cost of houses in Dublin and outside Dublin with the average price now being 53% higher for homes in Dublin."

DUBLIN .V. REST OF COUNTRY: House price growth was 7.5% and 5.3% in the twelve months to May 2005 for houses in Dublin and outside Dublin. The equivalent rates to the end of April 2005 were 7.7% and 5.3% respectively. House price growth in the first five months of 2005 in Dublin and Outside Dublin was 2.6% and 2.0% respectively. The equivalent rates in 2004 were 3.9% and 4.6%.

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House price growth year on year to May 2005 (5.9%) was unchanged from that recorded in April 2005 (5.9%).

First time buyers .v. Second time buyers: House price growth in the first five months of 2005 for first-time and second-time buyers was 3.0% and 1.5% respectively. The equivalent rates in 2004 were 2.6% and 4.5%. House prices grew by 8.3% and 5.9% year on year to May 2005 for first-time and second-time buyers respectively. The equivalent rates to the end of April 2005 were 8.5% and 6.2% respectively.

The price of a house for a first-time buyer and a second-time buyer in May 2005 was €227,915 and €291,515 respectively. The equivalent prices in May 2004 were €210,544 and €275,438.

3 BEDROOM SEMI-DETACHED HOUSES: House prices in this category grew by 5.7% in the twelve months to May 2005, up from 5.4% to April 2005. House price growth in the first five months of 2005 was 2.5% compared to 3.3% in 2004. The price of a 3 bedroom semi in May 2005 was €255,237, up from €241,276 recorded in May 2004.

NEW .V. EXISTING HOUSES: House price growth in the first five months of 2005 in new and second-hand houses

Meanwhile, First- Time Buyers now account for one in every two purchases of secondhand property in Dublin, as the changes made to the stamp duty regime for first time buyers of second hand property in last Decembers budget made the second hand market relatively more attractive for first time buyers. This was among the main findings in a DNG survey published in September.

THE OTHER MAIN FINDINGS WERE: * Prices in the second hand residential market continue to grow strongly – increasing on average by 5.4% in the second quarter of this year and by 10% since January * Average Price of a second hand home in Dublin now stands at €424,000 * Annual Rate of price inflation accelerated slightly to 15.5% in the twelve months to June due to strong price growth in first 6 months of 2005. * The auction market outperforms all other sectors with the average price paid at auction 25% higher than the corresponding period last year. * The number of homes auctioned worth €3 million and above, increased by a massive 180% compared to the same period last year. * Confidence amongst investors is still high with 17% of second hand properties traded in the first half of the year sold to investors. * Ongoing market strength is highlighted by the fact that over two thirds (69%) of home sales are agreed within 2 months of the property coming to the market.

New Homes’ sales remain buoyant in the year to date, despite worries at the beginning of the year that the market would weaken due to high supply levels and stiffer competition from the entry level to the second hand market.

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TAX MATTERS AS THE TAX DEADLINE OF OCTOBER 31 APPROACHES, ACCOUNTANT DEIRDRE COUNIHAN POINTS OUT SOME KEY ITEMS TO BE CONSIDERED

FILING OBLIGATIONS Deirdre Counihan, BAAF, AITI

It is fast approaching that time of the year again when tax matters loom their head and the frantic search begins for all the relevant information. In the past few years the process of filing Income Tax returns has been eased by the introduction by the Revenue of online filing facilities. However, although the Revenue have attempted to make the process easier, it is still important for all individuals to be aware of their obligations in this regard.

If the return is submitted late a surcharge of €1,000 will apply (€20,000 x 5%). The calculation is not on the outstanding amount in this case.

Penalties for late payment Interest will be charged at a 0.0322% per day on underpayments.

SOURCES OF INCOME Who is required to file?

All Chargeable Persons. This includes all Sole Traders, Partners and Company Directors

What date must it be submitted by? 31st October 2005 if filing returns by post 17th November 2005 if filing and paying online.

What taxes must be paid?

Balance of Income Tax for 2004 plus Preliminary Tax for 2005 plus Capital Gains Tax for disposals from 1 January 2005 to 30 September 2005

The payments above must be made by 31 October 2005 unless the return is filed and the payment is also made online, in which case the deadline is the 17 November 2005.

PENALTIES FOR LATE FILING Return filed before 31 December 2005 – 5% of the outstanding tax liability, subject to a maximum of €12,695 Return filed after 31 December 2005 – 10% of the outstanding tax liability, subject to a maximum of €63,485 In the case of a director the surcharge is calculated on the liability before taking into account PAYE paid during the year.

EXAMPLE: Company Director total Income tax liability

€20,000

PAYE already paid Outstanding Liability

€18,000 €2,000

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The first section of the Income Tax return deals with the various sources of Income that can arise. When an individual is self employed his/her main source of income will normally be one of the following: * Profit from sole trader accounts * Share of profit from partnership accounts * Director’s salary and other benefits The other most common sources of income that arise are rental income, dividends from Irish and UK companies and deposit interest.

Although deposit interest is subject to tax at source it is still necessary to include details of the amount earned on your Income tax return. (except for S.S.I.A’s) However, where tax has been deducted at 20% there is no further liability to Income Tax. Irish dividends are also subject to a deduction of tax at source. It is necessary to return the gross amount of the dividends for the year. This amount is taxed at your higher rate of Income Tax but you are given a credit for the tax already deducted.

UK dividends are subject to UK tax at source. However, this amount is ignored completely and you are required to return details of the net amount of the dividend i.e. the amount you received in cash. This amount is taxed at your higher rate of tax.

RENTAL INCOME Where an individual receives rental income from any property he/she is required to return the details of this income on his/her income tax return. The amount to be returned is the gross amount of the rent received.

However, this figure can be reduced by the following expenses: * Interest on monies borrowed to purchase or repair the property. It is important to look at what the money borrowed was used for, rather that what property money is secured against. When deciding whether to allow the interest relief the Revenue will look at how

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the money was spent rather than where it came from. * Cost of goods and services provided in relation to the letting i.e. gas, electricity, telephone rental, cable T.V. * Management fees and letting fees * Legal fees in relation to drawing up leases and rent collection * Insurance costs * Repairs and maintenance fees i.e. repainting and decorating, mending broken doors, windows, furniture etc. * Certain mortgage Protection premiums * Wear & tear on furniture – the cost of providing furniture can be written off at a rate of 12.5% per annum. A list of expenditure incurred should be retained each year.

No expenses incurred prior to the date of the first letting is deductible with the exception of legal fees & letting fees incurred in getting the tenant. In addition expenditure on furniture and fittings would also arise before the first letting. No expenses incurred after a period of letting ceases is allowed as a deduction. However, where there is a gap between lettings

expenses incurred during this period are allowed provided the landlord does not occupy the premises during this time.

RELIEF’S TO BE CLAIMED When an Income Tax return is filed it is an opportunity to claim annual allowances and reliefs. The following sets out a number of common (and some not so common), but sometimes overlooked relief’s that are available to claim.

TAX RELIEF AT SOURCE In the past number of years Tax Relief at Source (TRS) has been introduced for both Mortgage Interest and Medical Insurance.

This effectively means that the cost of each of these is reduced by the tax relief available on them. For this reason they are generally no longer required to be returned on your annual income tax return.

MEDICAL EXPENSES The cost of GP’s, consultants, hospital visits or stays, physiotherapy, nursing home costs, certain non routine dental costs and

prescription medication are covered by this relief, (these being the most common, but not an exhaustive list, of expenses).

The cost must be reduced by amounts reimbursed from any source (e.g. VHI, Bupa or Health Boards). In addition the first €125 for a single person or €250 for a family must be deducted.

The relief for medical expenses is available at your marginal rate of tax, thus making it a very valuable relief. Many people do not claim these expenses as they do not have the relevant information. I would suggest that you have an envelope set aside and that you put receipts from doctors, chemist etc. into this throughout the year. At the end of the year most people will be surprised at the amount accumulated, particularly those with young families.

One of the areas often overlooked is relief for nursing home care for an elderly parent.

In order to claim the expenses it is necessary for the parent to qualify as a dependant relative and their income must also be taken into account in calculating the amount of fees that qualify for relief. Given the cost of nursing home care this can be a very significant relief where it applies.

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PENSION

NEW SHARES PURCHASED BY EMPLOYEES

Pension contributions are also allowed at the individuals’ marginal rate. The maximum contributions allowed in a year are as follows: Under 30 years of age 30- 39 years of age 40-49 years of age Over 50 years of age

Tax relief at the marginal rate can be claimed on the purchase of new shares by employees or directors. The maximum lifetime deduction allowed is €6,350. There are certain conditions that apply to this relief but it can be useful when starting up a new company that requires some cash input.

15% 20% 25% 30%

The contributions are subject to an overall earnings cap of €254,000 p.a.

In addition to the above there are relief’s available for the following:

In claiming relief for pension contributions it is possible to claim the full amount paid in the relevant tax year plus any amount paid before the following 31 October.

Service Charges, College Fees, Home Carers Credit, BES investments, Film Investments, Rent Credit and Trade Union Subscriptions.

For example: For the tax year 2004 you can claim any amounts paid from 1 January 2004 to 31 October 2005. Any amount paid in 2005 must also be claimed by 31 October 2005. This allows you to top up your pension payments for a year before filing your return and paying your Income Tax. Effectively you get immediate relief for this contribution.

CHARITABLE DONATIONS

PERMANENT HEALTH INSURANCE

PAYE individuals Relief granted to the charity as follows:

This is a very important consideration for self employed individuals as it provides a stream of income for the individual in the event of ill health. Premiums paid for PHI policies are allowed at the marginal rate of tax, subject to a maximum premium allowed of 10% of income.

Relief is available for donations of €250 or more to approved charities. The relief is available as follows: Self employed individuals Relief granted to the tax payer as follows: a) Donate €500 – tax relief @ 20% = €100 b) Donate €500 – tax relief @ 42% = €210

Donate €500 a) from a lower rate tax payer the charity can claim €125 from the revenue b) From a higher rate tax payer the charity can claim €362.

SUMMARY For self employed individuals it is necessary to file an annual income tax return in order to avoid penalties and surcharges. However, by putting aside some time to complete the task correctly it will be possible to ensure that you are reducing your Income Tax bills to a minimum.

Deirdre Counihan, BAAF, AITI DC&A Tax Consultants P: 6109979 F: 6105560 E: deecounihan@eircom.net

WHO HAS REMOTE CONTROL? professional business environment, managing our client’s needs efficiently is paramount through employees having access to data from wherever they happen to be.

For example: an appointment for a property If your business doesn't currently use client management software, perhaps you would care to answer some questions. How easily can your staff reach critical information about clients and properties, no matter where they are? Does your current system allow for the filing of all relevant data? Is the database so bloated with old data that users are constantly scrolling through huge lists to find what they need? More frightening still, is your data secure? If it is not, how much would it cost you to find new customers if you lost track of your existing ones?

In today’s ever demanding and competitive

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viewing is missed, what happens now? The sale of a property lost perhaps? A phone call is not returned because the initial message was not recorded and a staff member working remotely simply “ didn’t get the message” Modern client management systems are more than just databases and XDA’s are more than just business toys - they are tools for analysis of sales, client details, offers on properties, accessing emails, phone messages, diaries and more.

“PROPER CONTROL OVER CLIENT AND PROPERTY DATA HENCE IMPROVING CUSTOMER SATISFACTION AND INCREASING SALES”

A big concern for business’s implementing new systems is whether staff will embrace and fully use the technology provided.

Implementation will most likely be successful if systems allow ease of use, full integration and the accessibility of all company information and correspondence, proper control over client and property data hence, improving client satisfaction and increasing sales. No amount of the latest technology and software will help your business unless all staff including remote workers have full access to the system. For a lot of remote workers, providing full integration of their XDA with the office to access all client information and correspondence is vital. An example of this type of integration is the XDA integrating with eXpd8 Property software.

For further information log on to www.eXpd8.com and www.O2.ie

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ROCHE APPOINTS BOARD OF NEW AFFORDABLE HOMES PARTNERSHIP "A significant step forward on the road to securing more affordable housing," was how Mr. Dick Roche, T.D., Minister for the Environment, Heritage and Local Government, described the recent appointments he has made to the Board of the new Affordable Homes Partnership.

The Minister was speaking at the announcement of the full membership of the Board, which was also attended by the Minister for Housing and Urban Renewal, Mr. Noel Ahern T.D. The Partnership's role is to bring improved co-ordination and impetus to the delivery of affordable housing in the Greater Dublin Area.

The full membership of the Board is as follows: * Des Geraghty, Chairperson (former SIPTU President) * Mary Higgins (management/social policy consultant, former Director of Dublin's Homeless Agency)

* Professor Mary Lambkin (Dean UCD Business School) * Maureen Lynott (Management Consultant, Chair of Ballymun Regeneration Ltd) * John Fitzgerald (Manager, Dublin City Council) * Derek Brady (Manager, Dun Laoghaire-Rathdown County Council) * John Tierney (Manager, Fingal County Council) * Joe Horan (Manager, South Dublin County Council) * John O'Connor (interim Chief Executive Officer) Also commenting on the announcement, Minister for Housing and Urban Renewal, Noel Ahern, T.D., highlighted the benefits that will flow from the establishment of the Partnership. "The potential for the Partnership to make a very real impact is enormous. We have powerful affordable housing tools in place in the form of Part V of the Planning and Development Act and the Sustaining Progress initiative. The very clear benefit of the Partnership will be its ability to bring a single-minded focus to bear on the challenge we now face – and that is to use those tools effectively and secure the delivery of more affordable homes in the Greater Dublin Area, at a faster pace".

ADVERTORIAL

ENTREPRENEUR O’REILLY CREATES THE TECHNOLOGY TO GET AHEAD! If you’re an auctioneer operating in today’s market, PropertyCRMTM – supplied by BrokerCRMTM Ltd – offers you all you need to get ahead in the industry.

Reflecting the changing face of the Irish property market - which has become progressively IT based – BrokerCRM offers an all encompassing, technology-led, client based management solution. PropertyCRM is designed specifically for the property sector.

Developed around the key principal that the Client is the most enduring asset for all intermediaries, it combines the very essence of Client Relationship Management with Business Management in a unique software solution With more and more auctioneers recognising the potential value of their client base – and the potential to cross market over various product types – a product such as this has never been more essential. By taking on an IT system such as PropertyCRM, auctioneers can maximize the use of their client data in an entirely compliant way. This allows them to drastically improve customer service levels and develop their business – including in the area of mortgage lending.

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Philip O’Reilly, Managing Director of BrokerCRM is known to be somewhat of an entrepreneur. In fact he was the first auctioneer to launch a property website in Ireland! Philip researched, designed, and nurtured BrokerCRM since its inception and continues to manage and develop the business today. He is an expert on the subject of CRM and has a successful background in finance and property. 7 years in gestation, BrokerCRM now offers a fully compliant, all encompassing IT software solution for the Financial, Property and Broker sectors.

PropertyCRM is part of a larger suite of compatible software products available from the BrokerCRM Company. The Property module is available as stand-alone software or as part of a broader software solution, which includes mortgage, assurance, pensions and investment functionality.

“There is no other software company accommodating auctioneers entering the mortgage market - which is increasingly the case as those in the property industry will know. Having worked in the industry for a number of years, I know where the gaps lie and what auctioneers need to take their business to another level. Taking their business to the next level is essential for

survival in this ever changing fast moving industry.” Says Philip The functions available via PropertyCRM are vast. It manages enquiries, valuations, market appraisals and properties for sale, lease or rent. It builds brochures, PowerPoint presentations and property lists. It takes care of all your letters - to purchasers, vendors and solicitors right through to market appraisal reports. The system matches and manages all enquiries, with facilities to send information by letter, email or text. It retains shortlists of properties that match a particular enquiry so that sales enquiries can be worked on in an intelligent manner.

Essentially, the system logs and tracks every action in relation to each property and enquiry right through from initial contact, to viewings, offers and enclosure, giving all staff members instant visibility on the progress of each transaction. And that’s just the basics!

It's just over a year since the official launch and already the award winning BrokerCRM has a vast and rapidly expanding client base and has struck significant partnership deals with companies including Irish Life Assurance plc, EBS Building Society, O2 Ireland, Best Advice and Relay.

For more information contact Philip O’Reilly on 086 6044448 or visit www.brokercrm.com

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DELIVERING QUALITY!

BY PETER BRADY, CHAIRMAN, IPAV EDUCATION ADVISORY COMMITTEE

We live in an age where the phrases “quality assurance” and “rip off” co-exist in the minds of many people in this country. The work of Eddie Hobbs has highlighted, in a simple way, the nature of the Irish economic and political system.

* The Institute also reviews programmes on a regular basis to make sure that the content is relevant – a process formally undertaken every five years, but subject to annual review to reflect changing social, political, economic and legal circumstances.

Even if we are to be sceptical of some of the points made by Mr Hobbs in his programmes, there is no doubt there is some semblance of truth in his presentations. Why else would he appear to have succeeded in ruffling the feathers of some politicians? No smoke without fire - and all that!

At the heart of the quality movement is the belief that things can be done better by ensuring that there is a procedure, a facility for reflection and a determination to improve delivery by responding to identified problems.

Maybe access to television and a very selective, professional approach to his topics made it easier for him to point out some of the perceived absurdities of present policies and decision-making. It is easy to ridicule.

Delivering quality is a more complex process.

In the field of education this can be a very difficult task to achieve since the nature of the job can be very singular – teachers are not always great team players. Neither do they always make great managers. No fault of theirs – teaching and managing can be very distinct functions.

HIGH STANDARDS IPAV has always aspired to high standards in its education programme. From the outset, the objective was to provide a relevant, professional education and training that would fulfil the needs of practitioners operating in a sophisticated market.

In this way, the public interest would be better served.

It is the Institute’s responsibility to ensure the quality and standards of its various educational activities. This is accomplished in the following manner: * IPAV maintains an open and rigorous system of independent moderation to make sure that the standards of its awards are comparable with that of other professional bodies. * It also recognises the needs of learners and provides information about the structure of the programme of study and the regulations governing awards.

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It is not a once off procedure. It requires vigilance, dedication, teamwork, and a willingness to change if it is in the best interests of the people concerned.

And this is the important issue.

‘Quality Assurance’ at the end of the day is about people. Not too long ago, it was pointed out to me by a visiting inspector from the UK that sometimes the idea of quality gets lost in the paperwork. The documentation becomes the imperative and the person is lost.

MAINTAINING QUALITY The challenge facing all organisations is how to deliver a quality service and, more significantly, how to maintain it. The task involves the delicate balancing of various interests – there must be something for everyone in a quality driven system.

Without labouring the point, it is reassuring to realise that it is a genuine aspiration of the Institute to provide a quality service to the public in its professional and educational activities.

Action, review, reform are the key words that guide us in our endeavours. As Shakespeare once wrote “To thine own self be true …”.

Quality is not achieved overnight. It takes time, involves mistakes and errors but, significantly, a recognition of faults and a desire to improve.

It is our desire to be true to our mission recognising that error and mistake is part of the journey; that there will be problems and difficulties along the way; that these become irrelevant when appropriately responded to.

So, Eddie, thanks for the programmes!