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migratory birds
29th December 2007, 03:21 PM
Interesting story covered on NPR's "Marketplace" tonite:

http://marketplace.publicradio.org/display/web/2007/12/28/locals_only/

"Here in Galway County Hall they've adopted a locals-only planning rule. In certain rural areas people have to prove a strong local connection before they get a building permit. In some cases, they've got to speak Gaelic, too."

Seems some Irish council planning commissions are restricting permits to anyone but locals to prevent the buying up of some of the most beautiful land in Ireland, driving up real estate prices and pricing out locals' ability to buy for themselves.

Controversial...but I wonder if the same were done in NZ, or least if purchase of real estate were at least restricted to residents/citizens if we wouldn't see greater moderation in real estate values/asking/selling prices in NZ.

Moorf
29th December 2007, 03:49 PM
Sounds very similar to a scheme being bounded around in the wee Scottish village we lived in - although it was more to stop holiday-homes being bought and then only lived in for a month a year and also to help young locals to buy houses near their families instead of having to move away due to huge hikes in house prices... I'm not sure how I feel on the matter - I don't think you can unless you're suddenly stopped from purchasing your dream house because you can't speak the lingo or have ancestral connections to the place...

gil
29th December 2007, 04:28 PM
I'm not sure how I feel on the matter - I don't think you can unless you're suddenly stopped from purchasing your dream house because you can't speak the lingo or have ancestral connections to the place...

I'm not sure personally either Moorf; I do think the 'unless' can also include "unless you're unable to buy a house where you've grown up and where your family are because you're priced out of the market by an influx of second home owners" though.

Gil

jubjub
29th December 2007, 04:35 PM
Such a rule would never stand up to a challange in the European Courts, treaty of rome ensures that all citizens of member states have equal rights and can't be discriminated againt. (Sals husband)

ellenmelon
29th December 2007, 05:11 PM
i, to some extent, understand why they do that. people are buying holidays homes in Co. Galway and only spending their holidays in the summer there and they sit empty the rest of the year. its a beautiful part of the country, the west coast, but there are people that want to live there all year round, not just for two weeks in july.
its hard to get planning permission anywhere in ireland anyway, if you want to build a house that is different from those horrible housing estates or a bungalow...an bord pleanala (irish planning board) make it hard. they are aware of it as far as i know.
it has and is being looked at by the EU so i doubt it will be an issue for too much longer...who knows though.

nickydwuk
29th December 2007, 09:33 PM
They did that with a new development near me a few years ago. Only people who were living/working in Luton could buy the new houses. But when they had been bought they were either rented out immediately or sold on again so it didn't work in the end. The proprty developers were buying their 2nd & 3rd properties to make a profit rather than allowing the people living in the town to buy their own homes. It is a good idea to help the local community but difficult to enforce.:no

Nick88
30th December 2007, 09:15 AM
Ellenmelon alluded to the real reason for the problem - the town planners. If lots of people like an area and want to live there, but nobody can get permission to build a home (with their own money, on their own land!) then the prices will rise. Sadly town planners live in a fairy tale world where economic realities like this don't exist. The same dense thinking has caused most of the property price rises seen in NZ and the UK. I live in hope that central govt will bang some heads together, but I'm not holding my breath.

DMcG
30th December 2007, 09:35 AM
In the Channels Islands properties have two prices, one for "locals" and another for "incomers" - this is mainly a result of the tax exempt status of the islands drawing large numbers of wealthy people and driving prices way beyond the point where people born in the Islands can't afford to buy a house.

Dougie

dharder
30th December 2007, 10:35 AM
They did that with a new development near me a few years ago. Only people who were living/working in Luton could buy the new houses. But when they had been bought they were either rented out immediately or sold on again so it didn't work in the end.

When I last looked at leaving London, half the affordable houses in Suffolk and Norfolk were for people who'd lived in the area for years or who'd been working there.

Not sure if that is still the case, this was a few years ago.

Daniela

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