Posted online: Mar 5th, 2009

By Sinéad Flanagan
editor@kildarepost.com

Property in Kildare has plummeted in value by 40 per cent since its peak, according to Tom Parlon, Director of the Construction Industry Federation (CIF).
However, all is not lost as the CIF and the Irish Auctioneers and Valuers Institute (IAVI) are working on a proposal to put forward to Government to incentivize first time buyers into buying now, in a bid to get the market moving again.
The proposal includes tax credits of €5,000 for five years for first time buyers which means a saving of €25,000 for the buyer and up to €1.5 billion in unclaimed VAT for the Government.
VAT on the average unit is €35,000 when sold. With approx. 40,000 units unsold, the figures amount to the region of €1.5b for the exchequer should this incentive get these properties moving.
In order for this to work, Mr Parlon adds that “people are going to have to face up to the reality of the market.
“Banks have put a lot of pressure on individuals. The best chance a bank has is to continue to deal with the customer. They’ve been putting the gun to the head but have been relatively slow to pull the trigger. But, people must wake up to the market reality,” he says.
In an effort to get properties sold, some sellers “have offered to say, if the price of a house falls in the next 12 months they’ll make up the difference or that there is scope for negotiation there.”
The value of the property market nationally was €573 million in 2005, this fell to €479m in 2008 and is expected to hit €278m in 2010.