Why are institutional property investors being demonised?

joe sod

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718
There seems to be a lot of bad publicity in relation to reits lately. There is a concerted effort against them, now referring to them as "cuckoo funds". However why are buy to let investors not referred to as "cuckoo investors", it's the same logic even if totally false. The fact is that these funds are actually building apartment blocks that are needed. Most Irish developers do not have the capability or capital to build these and the state is certainly not capable of doing it. As far as I can see most residential development happening in Ireland is still one off houses in the countryside or small estates at the edges of towns. It's also a fact that the government invited in reits and funds to invest in the Irish property market when it was on its knees .
Surely if the government wants to cool down the property shortages, it needs to cool demand since it is incapable of increasing supply. Therefore reduce the ease at which people can migrate to Ireland to do low paid low skilled jobs.
 

galway_blow_in

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1,429
There seems to be a lot of bad publicity in relation to reits lately. There is a concerted effort against them, now referring to them as "cuckoo funds". However why are buy to let investors not referred to as "cuckoo investors", it's the same logic even if totally false. The fact is that these funds are actually building apartment blocks that are needed. Most Irish developers do not have the capability or capital to build these and the state is certainly not capable of doing it. As far as I can see most residential development happening in Ireland is still one off houses in the countryside or small estates at the edges of towns. It's also a fact that the government invited in reits and funds to invest in the Irish property market when it was on its knees .
Surely if the government wants to cool down the property shortages, it needs to cool demand since it is incapable of increasing supply. Therefore reduce the ease at which people can migrate to Ireland to do low paid low skilled jobs.
Taboo subject
 

joe sod

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718
Taboo subject
It must be, however when you look at the fiasco of st James hospital with the cost over runs. The government's blatant attempts to blame the building contractor, a major international company also building the Intel extension in Leixlip. They had to back track fairly quickly when the contractor offered to walk away from the contract and it was obvious that nobody else had the capability to do it. But more importantly they did not want their good name being dragged through the mud and were willing to sue the government for bad mouthing them. There is a very worrying trend in Irish public life of blaming foreign companies or investors for the short comings in our public bodies. Therefore when we need foreign capital in the future it will not be forth coming.
 

joe sod

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@Brendan Burgess , I did not hear your contribution but will look it up later.
We can't have it both ways, on the one hand we go to great lengths to attract in international capital and the biggest contributors to our tax revenue are from foreign multinationals. They are also the biggest investments in the ifsc, Irish presence there is tiny in comparison.
They were also a way for Irish investors to get exposure to the property and stock markets by investing in reits. As we all know the Irish government taxes highly investments by Irish people in etfs. The funny thing is that these etfs are domiciled in our very own ifsc.
If we are going to levy institutional property investors, then we should levy all big investors in Ireland to be consistent,
 

llgon

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400
I think the simple answer to the question is begrudgery. The 'vulture funds' came in and invested when the market was at rock bottom and have profitted handsomely as a result.
How dare they!
 
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