Original article by Jim O’Brien, on Independent.ie

The last few weeks of 2016 saw somewhat of a flurry of sales in the auction rooms with good prices achieved, writes Jim O’Brien.

In the southeast, Alan Kinsella of Kinsella Estates Gorey and Carnew sold a 48ac non-residential farm at Ballybuckley, Bree near Enniscorthy in Co Wexford for €662,000 or €13,600/ac.

Located 800m from the village of Bree, the land is about 5km from Enniscorthy and across the road from the well-known Wilton House.

Currently in stubble, the holding is made up of two distinct lots consisting of a 16.15ac parcel with about 300m of road frontage and a 32.33ac parcel with laneway access.

The stubble ground is described by Mr Kinsella as good quality, south-facing land with access from two roads.

At auction, two rounds of bidding saw the amount on offer for the two lots reach a total of €465,000.

The 16.15ac piece opened at €160,000 and with two bidders in the chase, it was making €220,000. The 32.3ac parcel opened at €200,000 and with two bidders in action, it held at €245,000.

Bidding then concentrated on the entire in a sale driven by the two customers who had bid on lot two in the first round. When the amount on offer reached €580,000, Mr Kinsella consulted with the vendor and the property was put on the market at that price.

However, this was far from the end of the story and a further series of bids from three active customers saw the price break the €600,000 mark.

But still the hands kept rising until the hammer fell at €662,000 and a local farmer bought the place for €13,600/ac.

Enniscorthy auction

Staying in Wexford, Frank McGuinness and Michael O’Leary of Sherry FitzGerald O’Leary Kinsella sold a 92ac farm at Fairfield, The Still, Enniscorthy for €1.24m or €13,500/ac.

The holding, which includes a derelict house, has been idle for more than 10 years and will take some works to clear overgrowth and vegetation and bring it back to full farming production.

Auctioneer Frank McGuinness said that although the land is overgrown, it is fundamentally very good productive ground. The place has plenty of road frontage divided as it is by the Enniscorthy to Caim road.

Prior to auction, the property was guided at between €750,000 to €900,000 but on the day it exceeded all expectations.

Frank McGuinness was in charge of the gavel and opened proceedings with a 19ac lot across the road from the main farm. This opened at €150,000 and, with two customers in contention, was bid to €280,000.

The main lot – consisting of 73ac with the derelict house – attracted three interested parties and was bid to a hefty €820,000.

This gave a combined €1.1m for the entire, well ahead of the guide.

Mr McGuinness put the entire to the floor at €1.1m and with two bidders in action it quickly rose to €1.2m.

At this point, a new bidder entered the fray.

With four customers in action, the price rose quickly to €1.24m at which point the hammer fell and the place was bought by a solicitor based in Enniscorthy – believed to be acting for two clients.

Mr McGuinness said that while he was surprised at the price paid, the extension of the M11 to by-pass Enniscorthy and improvements to the New Ross road resulted in a lot of CPO land purchase in the area, hence farmers in the area have spending power.

Alan Kinsella agreed.

“The farmers who sold land for these developments have to spend it on land to avoid paying tax on it so there is more money for land in this vicinity at the moment,” he said.

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at kinsellaestates.ie .  Alternatively, you can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718 to arrange a viewing on our qualifying new builds.

Full article by Richard Halleron on Agriland.ie

Increasing numbers of landowners are now opting to set their property on the basis of a long term lease arrangement, according to IFA Grain Committee Chairman Liam Dunne.

In some cases we are talking about periods of up to 15 years, he said.

“The process involves the involvement of both the Revenue and the Department of Agriculture. This is a further reflection of the growing pressure on tillage margins.

“As a consequence, families are deciding to lease their land in a way that gives them a degree of long term security. In turn, this frees them up to look at new ways of generating an income.”

Problems can arise, however, if a leasing arrangement falls through and this has happened in some instances over recent weeks.

Dunne said that many of the land letting prices published in the media do not reflect the average tone of the market.

“Most letting deals are arrived at privately between individuals and price is only one of the factors coming into play.

“Lessees want to make sure that their land will be managed properly. Going for the highest bidder doesn’t always ensure that this will be the case.”

As a rule of thumb rental prices for cereal production will be in the region of the returns on-offer for the first tonne of grain coming off the combine. Wheat is currently making in the region of €150/t.

Dunne said that the reality is that it will take the money generated by the next two tonnes of grain to cover the actual cost of growing the crop.

Alan Kinsella, of Kinsella Estates, also confirmed that an increasing proportion of the land set in Ireland is now tied up in longer term leasing arrangements.

“Most of these have a rental review built in after year two and, where cereal ground is concerned, there will be pressure exerted to have rental costs brought back in 2017,” he said.

Kinsella said that he is also aware of a number of tillage farmers in the south east who have opted out of leasing ground for winter corn this year. Instead, he said they plan to secure land for either a spring cereal or root crop in 2017.

“Whatever 11-month land that is on the market will be become available in January. And the first two auctions will set the trends for the season.”

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at kinsellaestates.ie .  Alternatively, you can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718 to arrange a viewing on our qualifying new builds.

According to the Independent newspaper reporting of the recently released ‘Ireland 2040’ document, Dublin is “eating”  the rest of the country

The report, launched by an Taoiseach and the Housing Minister last week, makes for tough reading for most of rural Ireland.  It charts the gradual decline of rural businesses, communities, towns and villages.   The simple reality is that when money leave an area, the people must surely follow.  And this is exactly what happened.  Today,  close to half of all economic activity (49%) is generated in Dublin, which is pulling the labour force away from their home counties and closer to the capital. That figure is particularly worrying when you compare it to our closest neighbours; London generates only 32% of England’s economic activity.

We have been hearing about a two-tier country since the early days of the property crash and here in the South East, we know first-hand that recovery is not happening in a fair, uniform way.  But this report forecasts where the population will be by 2040 if these trends continue,  and it’s not good news for the majority of the country.

As we can see from the above image, all parts of counties Wicklow and Wexford are likely to benefit from this over the coming years and decades as the commuter-belt widens.

Over the past 20 years, half of the population growth in the entire State has been in and around the Dublin area.  Without some big changes, this number is set to jump to 75% of population growth happening in that region by 2040.  This is dire news for many but the South East is now looking more and more attractive, and not just for home buyers and investors.  Businesses looking for a base outside of the capital, healthcare providers, education centres and other service providers are likely to come in this direction.

The work, development and investment cluster will not necessarily happen in Dublin.  In fact, the report suggests that Dublin is or will become ‘the Dublin City Region’, extending into 10 other counties from Cavan to Wexford.

This report will impact hugely on our local planning over the next few years.  As more commuters look south of Dublin and Wicklow, into Wexford, we must ensure that we have enough homes, hospital beds, school places and other necessary facilities for our growing population.  For investors looking to buy strategically, Wexford offers particular value for money with ever-increasing potential for capital value appreciation.

Finally, there is a new State plan to save our rural towns and villages underway, this plan includes grants and incentives for buyers to restore derelict homes, and we’ll talk more about this next week.

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at kinsellaestates.ie .  Alternatively, you can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718 to arrange a viewing on our qualifying new builds.

As recovery rolls out across the South East, we look at how the local market performed last year and what we can expect in 2017.

Last year saw the appointment of our new Housing Minister, Simon Coveney and his ambitious plan: ReBuilding Ireland. The unveiling and widespread acceptance of this plan was probably the highlight of the property year – along with a relaxing of the Central Bank mortgage deposit rules –  but there were many, many lows. Without doubt, chronic lack of supply remains the critical issue and this is seen in the rising rental prices, record homelessness and a seeming stalemate within the developer community meaning that new supply remains well below demand for the third consecutive year. In particular, demand for housing in the capital increased by 10% while supply increased by a mere 1%.

Rentals prices increased nationwide by an average of 12% but Dublin and Cork saw increases of double that in key areas. An eleventh hour bill put forward by Minister Coveney – despite opposition from partners in government – aims to slow the rate of increase for the next three years to start with.  Rent caps of 4% per year introduced for the Dublin area are likely to spread to other urban areas over the next few months, north Wicklow will be first in line for that but south Wicklow and Wexford are not expected to face rental caps this year (unless universal application, as called for by Fine Fail, makes its way into legislation).

As for the first time buyers’ help-to-buy tax rebate scheme, whether this is a high point or a low point, really depends upon who you listen to.  The practical reality is that this initiative will only apply to a tiny proportion of buyers in today’s market.  If the government really wanted to impact the market, they would not have taken such a scenic route to avoid the perception of helping the developers.  The truth is that encouraging developers is exactly what is needed to get new housing units delivered as quickly as possible. This is something that the Minister has talked about and he has pledged to address the issue of building costs in the early part of 2017.  One effective way to do this might be to help bring down building costs by reducing the VAT rate, even temporarily, as we saw in the hospitality sector.  Unless building becomes commercially viable for developers and construction companies, there is no reason for them to take the risk.

But this needs to change.

From 2015 to the end of last year, the number of property purchases in Wicklow decreased from 1,402  to 1,271, mainly due to lack of supply rather than lack of demand, as evidenced by the price increases locally. A similar situation was seen in County Wexford where – despite price increases – the volume of transactions were down year-on-year  from 1,663 to 1,471.

With the population in a state of increase, employment continuing its upwards trajectory and mortgage funding in more plentiful supply than we have seen over the past eight years, demand is surging.  But without new housing, there is no way to service this demand.  Until new supply hits the market, prices will increase as competing buyers pay a ‘scarcity premium’ for any available homes in the right areas.

At the moment, for buyers, there are currently fewer than 700 available properties in County Wicklow and just shy of 1,100 available in County Wexford, that’s between six to nine months worth of supply. New homes are needed to bridge the gap between supply and demand as a matter of urgency.

Click here to view all of our new and second-hand homes in Counties Wicklow and Wexford.

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at kinsellaestates.ie .  Alternatively, you can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718 to arrange a viewing.

Originally published in the Gorey Guardian, December 10, 2016.

The busy construction team at Gleann an Ghairdin, the new estate being built on the Ballytegan Road, Gorey, recently hosted a group of fifth year construction studies students from Gorey Community School.

Accompanied by their teacher, Pat Hegarty, the 20 students were given a full tour of the site which is being developed by local builders Wexford Low Energy Homes. The development is made up of three-bedroom semi-detached and detached A-rated houses.

The students were shown around the site by selling agent, Michael Kinsella of Kinsella Estates and Nicky Morrissey from Wexford Low Energy Homes. They were shown houses at different stages of construction and saw foundations being poured, inspected houses being roofed, and viewed those being prepared for plumbing and electrical fittings.

Finally, the students became the first Gorey residents to look inside the showhouse on site before it opens to the public next week.

As construction was ongoing while the group was on site, safety was paramount and the students were kitted out with safety gear and got a practical lesson in safe on-site behaviour.

Foreman Nicky answered questions on every aspect of the build. The specialist low-energy home builders are using technology that the students would only have read about.

‘They were really engaged,’ said Michael Kinsella. ‘Many had never seen the inside of a building in progress. A site visit like this opens their eyes to new technologies and new ways of building for the future.’

This site visit comes at a time when the construction industry is struggling to fill jobs at all skill levels and is actively trying to promote the apprenticeship route for future tradespeople and construction-related third level courses for those who are college and university-bound.

‘It was excellent. I was really impressed with Nicky,’ said teacher Pat Hegarty. ‘The class had prepared questions for afterwards but he answered all of their questions during the tour.’

The showhouse will open for viewings on Saturday, December 10, from 1.30 p.m. to 3 p.m. See kinsellaestates.ie for more.

Over the last few years we got to learn a lot more about the property market than ever before.  We have websites like Daft.ie listing most properties for sale around the country together with the asking prices, we have the National Property Price Register telling us achieved sales prices and, most recently, the CSO has started including cash purchases rather than just reporting on mortgaged property transactions.  All of this is helpful, it improves transparency in the marketplace and that’s good for everyone, not just buyers and sellers but us agents too!  The only problem is that most of  the statistics are coming from the sale of town houses and apartments.  It is much more difficult for rural homeowners to gauge the value of their home and particularly if their home has lands adjoining.  For rural homeowners thinking of selling, definitely talk to us and we can let you know about recent sales, achieved prices locally and current ready buyers in the market.

For rural properties, often times, there  are fewer interested buyers but this is not necessarily a bad thing.  It can mean less time wasting as only very interested parties tend to view.  Of course, this also means that it is crucial to get the listing, marketing and presentation right from the start.  It’s a cliché that there is only one opportunity to make a first impression but it’s also true.  A disappointed house-hunter will rarely re-visit or re-consider a property that they have already ruled out just with the promise of a clean-up or painting job.

When I or any of the team here at Kinsella Estates visit a home (before listing it for sale) we will always give feedback on the current presentation and give advice on any changes or cost-effective improvements that are likely to either increase the value of the home or increase the attractiveness of the property to buyers.

When it comes to doing this suggested work, we can always advise on what repairs or maintenance are necessary or those that will generate a return.  It is not about renovating your home prior to sale, this is unlikely to ever make financial sense for homeowners.

Ways to prepare your rural home for sale is to put together area and property maps, good quality photos if you have them although we will always take professional quality images for the sales brochure, and definitely compile a list of contents included in the sale.  We will always position a rural property by giving driving distances to the next largest towns, as this helps potential buyers who might be unfamiliar with the vicinity to decide if the location works for them.  As part of our online listings, Kinsella Estates will accurately pinpoint your location on Google Street View (an interactive satellite map) so that interested buyers can find your property, also, they can get a sense of where it is in relation to neighbouring towns.

In my experience, including proximity to local schools, clubs and other facilities is helpful.  We understand that no-one knows the property as well as the owner so we will listen to what you have to tell us and then package that information for interested viewers.

While it might sound a bit unusual, I advise sellers to put together the most recent utility bills, bin collection information and any other relevant information that a prospective buyer would need to know about the running of the property.   In recent years, buyers are aware of new septic tank regulations and will certainly be looking for evidence of compliance as standard.  Internally, a clutter-free environment is the most important thing.  Neutral decor is generally a safe bet, buyers don’t mind an older or dated property provided they can see the potential and the best way to show people potential it to empty it as much as possible.  The practice of clearing your home prior to sale is not just good for presentation, it is also a great way to get a  head start on moving!

Do not underestimate the power of curb appeal; in truth, the first impression is made as the house-hunters turn into your laneway or drive.  With that in mind, keep hedges trimmed, mow lawns and most importantly, remove junk from around the house and sheds.  Potted plants can brighten up any yard so this is an easy way to improve the overall impression.  Also, give the entrance pillars a coat of paint, remove weeds and make the drive accessible for multiple cars, if possible.

Even animal lovers will panic of they are greeted by a pack of barking dogs upon arrival; please ensure that all pets are under control during viewing times.  Similarly, if you have animals in paddocks around the home, do let us know about any special precautions needed when showing people around.

Finally, because rural homes are unique, please do understand that interested buyers are likely to have lots of questions, they will want the view the property more than once and will probably take a bit longer to make a decision.  Remember this is all leading to you finding the right buyer (or letting the right buyer find you and your home!).

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact myself (Michael), Alan or Eileen Kinsella at kinsellaestates.ie . 

You can email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718     

Once again, if you are in doubt, speak to your surveyor after the issue of the report to clarify: (1) If there are any unexpected defects that are inconsistent with the age of the property and, if so, (2) Is that a reason not to proceed with the purchase?

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at kinsellaestates.ie.