Autumn 2011 Heading here The magazine of the Institute of Professional Auctioneers & Valuers Property Professional IPAV Education Courses Property at your fingertips Download the new iPad & iPhone apps today! facebook.com/daftmedia Follow Us: twitter.com/daftmedia blog.daft.ie Welcome The importance of CPD courses Dear Member Welcome to the Autumn 2011 edition of the Property Professional magazine. Like previous Autumn issues, this edition focuses on IPAV’s broad range of education courses, some of which have already commenced. Following some discussion at our AGM in May, the Institute has already held the first in a series of one-day seminars focusing specifically on all aspects of Valuation. Due to the density of the subject matter and the short timeframe, these seminars are limited to 25 people each. However, IPAV is anxious to accommodate all the members who wish to participate and those interested should contact Head Office without delay. I am also delighted to confirm the launching of a new Higher Certificate in Science in Sustainable Building and Property in conjunction with Limerick Institute of Technology (LIT). This HETAC-approved course is at Level Six on the National Framework of Qualifications and represents a major step forward in our The prOpertY PROfeSSIONAL education programme. IS the MagaZine OF the INSTITUTE OF PROfeSSIONAL The programme will be delivered in IPAV Head Office at 129, Lower Baggot Street, Dublin on a part-time AUCTIOneerS & ValuerS basis, with lectures delivered at weekends. 129 LOWER BaggOT Street I would like to thank the chairman and members of the Education Advisory Committee for their work in Dublin 2 putting this programme together and we look forward to working with LIT in the months and years ahead. Our regular Autumn seminars are in place again and details about them appear elsewhere in this issue. They will cover topics of interest to members in their day-to-day work, including health and safety issues Tel: 01 6785685 and recent legislation. I am glad to say that the numbers attending these seminars continue to increase Fax: 01 6762890 each year despite the unprecedented recession and I would encourage all members to use the current E-mail: [email protected] time to upskill on these and related items of interest. Website: www.ipav.ie CEI Website: www.web-cei.com Our range of courses in the Fine & Decorative Arts continues to go from strength to strength and Course Director Roxane Moorhead and her team of lecturers continue to add to what are already among the most highly regarded programmes of their kind in Ireland and beyond. Many members of the public who have found themselves with time on their hands for one reason or another find these courses of immense value and an ideal vehicle to acquire a new skill in a very interesting and diverse field of interest. IPAV will be running its weekend course covering all aspects of lettings on the weekend of 18 and 19 November at Head Office on Baggot St and this is an ideal opportunity for members and their staff to refresh their knowledge in an area of the property industry that continues to thrive in the recession. Members are also reminded to keep a close eye on IPAV’s websites which contain details of all of IPAV’s property courses, both full and part-time, www.ipav.ie and www.fineartcourses.ie . CHIEF EXE C UTIVE OFFI C ER Members should feel free to contact IPAV’s National Office in relation to any aspect of education or other Fintan McNamara M.Litt. Dip. L.S. issue of relevance at any time. MIPAV(HON) Best Wishes EDIT O R Tim Ryan Tim Ryan Communications Tel: 01 679 0380 Fintan McNamara ADVERTISING & DESIGN Chief Executive Designroom [email protected] Tel: 01 615 4715 CONTENTS PUBLISHER Designroom Property News page 4-6 www.designroom.ie 2010 Tax Return page 7-8 Fine & Decorative Arts page 10-11 PROpeRTY PROfeSSIONAL AUTUMN 2011 Education Courses page 12-15 Views expressed by contributors or Pension Update page 16 correspondents are not necessarily those of IPAV or the publisher and neither IPAV nor the Member Focus page 18 & 22 publisher accept any responsibility for them. Investing in BRICs page 20-21 Autumn Issue | page 1 President’s Message Message from the President Dear Member Despite the difficult economic circumstances in which we have to operate, I hope you found some time to take a break over the course of the Summer and that you are at least somewhat refreshed for the challenges ahead this Autumn. Recent reports indicate that the rental market is, at least, stabilized and the traditional letting season for students is already underway. However, the sales market continues to slump due mainly to the lack of credit from the financial institutions. Despite the fact that the two main banks are now largely owned by the taxpayer, they have not responded at all as expected by the general public and this is something which the Government has not adequately addressed to date and needs to do so as a matter of urgency. This was one of the main items on the agenda for discussion when an IPAV delegation met the Minister for Environment, Community and Local Government, Phil Hogan in July. The meeting, details of which are contained in this issue, covered a number of topics and included the upcoming property tax, the proposed ending of property tax reliefs, the increasing burden of commercial rates on small business and regulation. The Minister promised to take note of concerns and, where the matters were not directly his responsibility, to pass them on to his relevant colleague. The new regulatory legislation has been delayed, as you are aware, mainly to allow for changes to be made to allow for the new Regulatory Authority to take statutory responsibility for publishing property sales prices. This latter addition is long overdue, given the vacuum that has existed in this area for some time now. The new Bill, which will be brought before the Dáil in the Autumn, will bring major changes to our industry. IPAV, through its publications, seminars and ongoing contact with members, will keep them fully informed of all developments as they progress. At our meeting with Minister Hogan, IPAV expressed our substantial fears about the cost of the new licence which we understand is expected to generate substantial income to fund the new National Property Services Regulatory Authority. IPAV also stressed the view that the new licences should be valid for a 5 to 10 year period as is the practice in many other European countries. As regards education qualifications, IPAV has already pointed out that the majority of existing members have no need to worry. Under what is known as the “grandfathering” principle, any agent who has practised in the industry for a period of years, (probably three of the past five years but not yet finalised) will automatically be granted a licence. While there will, no doubt, be some teething problems in the transition to the new system, the Regulator and his staff have assured IPAV that they are keen to be as helpful as they can and are co-operating at every level with us. As President, I want to assure all members that I will be monitoring developments closely and will take any action needed to protect members’ interests when necessary. In the meantime, I look forward to meeting many of you at our Autumn Seminars which begin in early October. Like my predecessors, I would urge you to make every effort to attend at least some of these as we prepare for the new regulatory system. A CPD points system will accompany the series as in previous years. Our recent successful Annual Convention in Cavan heard a number of calls for ongoing seminars on Valuation and the first of these took place on Saturday, September 10. The next Seminar will be held on Saturday, October 8. In the meantime, IPAV’s Officers and National Office are there to assist members in any way they can. Queries can also be addressed at any time to the Office staff who are happy to help. I look forward to meeting you during the course of the year. Best wishes Padraig Smith President Autumn Issue | page 2 33656 MH HouseAgent A4 Press.indd 1 22/08/2011 14:49 Property News Minister Penrose calls for more pro-active engagement by developers and funders on unfinished estates Minister for Housing and Planning Willie • Driving a more co-ordinated and partnership approach Penrose has called upon developers between stakeholders; and financial institutions to take a • Tackling public safety as an immediate priority; more pro-active approach in working out long-term solutions for unfinished • Putting in place a stronger legislative and policy framework housing developments across the to incentivise real engagement by developers, site owners country. and funders in working with local authorities and residents in resolving unfinished housing developments; and The Minister made his call as he published the final report from the Advisory Group, entitled • Building confidence in the housing sector. Resolving Ireland’s Unfinished Housing Developments and Having considered the report and its recommendations his Department’s own Action Response to the report and closely, Minister Penrose also published his response announced the first allocation of funding to remedy public regarding actions and measures required to be taken in safety issues on some of the most problematic unfinished respect of the Final Report’s conclusion, a summary of housing developments. which are outlined below: The Minister expressed his concerns at feedback from many • Establishment of a National Co-ordination Committee local authorities around the country that, as they grapple with to oversee the implementation of action on unfinished unfinished developments, getting positive engagement from developments and to monitor and drive progress, to be developers, site owners and financial institutions responsible chaired by Minister Penrose; for the loans on such developments was proving very difficult.