What do you guys think will happen rental prices...

ogriofa

What do you guys think will happen rental prices after the budget?
I understand that we're looking at a 10% rise in tax.

What'll happen, will people stay put, sell up, rent their places, or will there be a rush on renting?

thanks

ntlbell

budget or no budget

freefall imo

El Stuntman

let me see, it's been a while since I studied elementary economics but I think I've got it, ah yes...

supply up

price down

rents are falling and will continue to do until equilibrium is reached in the market, given the massive over-supply that day is still a long way off

if you're renting, I wouldn't sign a long term lease now and would look to screw my landlord to the wall with rent reductions

if you're a landlord, I'd seriously consider flogging your property for whatever you can get

SoupyNorman

I signed a 1 year lease just before everything kicked off, I'm paying a bit more then the average for the area but I'm of the opinion that I entered into a contract for what I deemed to be a fair price at the time so I'm not going to pi$$ and moan, instead I'll wait the 5months until the lease is up and then tell the landlord we'll renew the lease for €300 less a month or just find somewhere that is vacant. I can imagine no landlord wants to risk having an empty property and if he does not want to accept our offer then there is ample other landlords that will.

I don't believe rents will hit a rock bottom though, its such a widely needed necessity that only the complete crap like bedsits on the Nth. Circular rd will be bargain basement prices.

El Stuntman

bravestarr082 wrote: »

I don't believe rents will hit a rock bottom though, its such a widely needed necessity that only the complete crap like bedsits on the Nth. Circular rd will be bargain basement prices.

what's 'rock bottom' or 'bargain basement' though?

those are very subjective phrases

Kipperhell

bravestarr082 wrote: »

I don't believe rents will hit a rock bottom though, its such a widely needed necessity that only the complete crap like bedsits on the Nth. Circular rd will be bargain basement prices.

I think this is where somebody with a bit of experience and knowledge knows better. The likes of bed sits and lower market properties have a more stable rental market due to the fact many landlords avoid the HSE tenants and the only places that will take them is the lower quality places.

It is easier to keep a place rented out if you accept HSE cheques. Higher spec places are lot more hassle as you have to keep the place to a better standard which effectively means it is more expensive to maintain. People will complain quicker and do the various different things people suggest here such as not honouring signed contracts and trying to reduce rents.

Many landlords didn't buy in the last 6 years and will have no problem hanging on to their property. There will be people who have to sell but it obvious from the general comments made on the forum only conceptualise landlords in the most simplistic way.

Tom123

http://daftwatch.thepropertypin.com/daftwatch/static/rental_total.png

Until the number of properties for rent starts to fall rental prices will continue to fall.

who_ru

but isn't the government's rent allowance scheme actually preventing rents from reaching their natural level - effectively by intervening in the private rental market through these supplements the government is not allowing real market forces to decide rents. it (the govt) is deciding rents.

SoupyNorman

El Stuntman wrote: »

what's 'rock bottom' or 'bargain basement' though?

those are very subjective phrases

I accept that point.



Just after my post earlier I rang the letting agent and got the rent reduced, LOL. I read what I posted and gave myself a proverbial slap and said why should I not ask and got €100 lobbed off the monthly rent.

portomar

bravestarr082 wrote: »

I don't believe rents will hit a rock bottom though, its such a widely needed necessity that only the complete crap like bedsits on the Nth. Circular rd will be bargain basement prices.

id rather live in a dog box in north circular road than a nice 2 bed in the middle of some blustery road in the ar*e end of the north county....which is where most of the over supply is i reckon, not many new places been built in dublin 1 over the boom

gurramok

portomar wrote: »

id rather live in a dog box in north circular road than a nice 2 bed in the middle of some blustery road in the ar*e end of the north county....which is where most of the over supply is i reckon, not many new places been built in dublin 1 over the boom

Docklands, Smithfield, the Quays, Parnell St area?

Certainly alot of areas in the city are oversupplied, a small number are not oversupplied.

Renting is still expensive here, they are about the same level as 2001(daft index) and falling back. When i say expensive, i do not mean shares as the vast majority do rent this way.
I mean if one were to rent an apt on their own, it would easily take a huge chunk of take home pay and now we have a situation where its falling back to levels like in other countries and rightly so.

Black Swan

Rent freeze on increases

Kipperhell

Tom123 wrote: »

http://daftwatch.thepropertypin.com/daftwatch/static/rental_total.png

Until the number of properties for rent starts to fall rental prices will continue to fall.

I am not saying there is no oversupply but the daft chart really only shows Daft has more customers. I know I used the site first in 07 and the 3 times in 08. I simply used it instead of other forms of advertising there was no addition to oversupply. The Daft figures are great for advertisement and publicity so they will keep using them.

cls

Daft is not a completely accurate guage. More and more people are using them and not too long ago you would need to check the papers, agencies etc to see if there are any properties not on daft. Nowadays daft will pretty much do. Meaning having your property on daft is becoming more and more the norm, affecting the figures. But having said that there is of course still oversupply

One thing people are neglecting to consider is interest rates. IMO, rents fall whenever rates fall. As we already saw in 2006/7, when rates go back up so do rents. There is also a belief that a landlord will take what he can get in hard times. This is not so. Like any business, there comes a point where its not worth it.