Property Tax To Increase Rents

Darlughda

jmayo wrote: »

Does it every cross your mind that the amounts being paid by the government, in other words divied up by the taxpayers like me and others, helps keep rents higher than they should be in the current market.

I do not know where to start or begin with this argument with you, but how on earth are tenants supposed to negotiate this decrease in RA with landlords? Do you have any idea how many of us are scared shytless of potenial eviction because we cannot afford the rent?

jmayo wrote: »

If taxpayers were not contributing €529pm then don't you think that landlords would have to drop their rents.
Either drop rents or have no tenant..

I do agree that rents are too high, but what is the point of leaving those most vulnerable in society trying to reason and argue this with a landlord on threat of eviction? There are still very, very few places for rent that accept RA, and you really should see some of the condition of these places. Threshold has, and they are actively campaigning for standards to be improved for these shoddy hell holes.

jmayo wrote: »

And you know what disgusts me ?
It is the fact that the normal taxpayers, are considered a sponge that can be squezzed and squezzed for every last drop, by both the ones at the bottom and the top.

What about the lowest tier of society that the lowest level of taxpayers are almost rubbing shoulders with, should we not be getting together to understand these problems together rather than trying to divide amongst us who is working and who is not?

jmayo wrote: »

You mention you have disability so fair enough.
But how many more are just leeching off the system..

You know what, I reckon they are few, and the 'system' have had the technology to pick up on the chancers, but its been too much effort too. Why, oh why cannot you reserve your anger for the real frauds-the higher echelon types who have screwed the system for millions for their own benefit?

jmayo wrote: »

I know of one landlord whose whole empire was tenants that were either so called refugees or long term unemployed.
His little empire was being funded to a large degree by the taxpayer.
Do you think that is right ?..

No he is a slum landlord, have existed for far too long. This is why we need proper legislation that does not leave the tenant at the mercy of the unscrupulous landlord when they are trying to plead why they cannot afford the rent due to RA reductions in the budget.

jmayo wrote: »

The gas thing is a lot of the ones harping on about refugees coming here getting free accomodation are often the very ones long term leeching off the system.
Any able bodied person that could not provide valid reason why they should not have had a job between 2004 and 2007 should have been kicked off all social welfare schemes.?..

Didn't realiase I had the illness that I had, nonetheless, that was nothing to do with the 261 job rejections I received during that period, despite earning a masters degree at my own expense to enable me access these positions.

senordingdong

So yesterday RTE reported an increase in rents.

I wonder if this is a new trend forming.

pablo wrote:

Not all landlords are by choice. My wife and I both had small apartments we couldn't sell - despite a year of trying. We had to buy a house because we have two small children.
Now we have two rental properties were the mortgage is 50% higher than the rents. When you deduct management fees and rental income tax and 200 a year tax on each for the council, we lose thousands.
When the property tax adds 3k next year I think we mig lose all three of our homes as we are barely coping now.
If a fianna fail politician dares call at my door I will punch him..especially as my td is lenihan

When it's broken down like that I can sympathise...but three homes...?

gurramok

senordingdong wrote: »

So yesterday RTE reported an increase in rents.

I wonder if this is a new trend forming.

Yes, its a wonder indeed in parts of Dublin for example. Perhaps people(who have a job and have not been prudent in saving on a monthly basis) cannot get a mortgage and are renting instead. Rents going up will be disastrous for the economy, we need cheaper accommodation and a reduction in Rent Supplement will help.

senordingdong

gurramok wrote: »

Yes, its a wonder indeed in parts of Dublin for example. Perhaps people(who have a job and have not been prudent in saving on a monthly basis) cannot get a mortgage and are renting instead. Rents going up will be disastrous for the economy, we need cheaper accommodation and a reduction in Rent Supplement will help.

This is what I was talkin about a few pages back about lots of renters coming out of the woodwork.
I think there's some truth in the idea that married couples etc... are renting instead of buying.

Someone suggested to me that some landlords (specifically letting companies) may be purposely holding out for a recovery, instead of conceding to lower rates. Believing that the hit they take from the flat lieing idle, could be smaller then the long term hit they would take from lowering the rates.

gurramok

Though when the bottom of the sales market is reached, there will be an outflux of some renters from the rental market. Together with the economic situation, there is no bright future for rents long term.

readyletsgo

At the end of the day. you may not pay the property tax of €80pm on your present rent when it comes in, BUT, if you move to another new place, the new landlord will have added it onto the rent already and you will be paying it, simple as that people. Nothing we can do about it really.

gurramok

readyletsgo wrote: »

At the end of the day. you may not pay the property tax of €80pm on your present rent when it comes in, BUT, if you move to another new place, the new landlord will have added it onto the rent already and you will be paying it, simple as that people. Nothing we can do about it really.

They(LL) already pay 200 quid a yr in property tax. The new proposal is for home owners yes?

senordingdong

gurramok wrote: »

Though when the bottom of the sales market is reached, there will be an outflux of some renters from the rental market. Together with the economic situation, there is no bright future for rents long term.

Do you not think large numbers of reneters snapping up cheap homes would be good for rent rates?

doolox

At the moment if you take the average price of a dwelling as 200k and the average rent as 1k per month then the return on the investment is 6 percent per annum gross.

Probably many landlords bought at the boom when prices were closer to 300k and are now fielding bigger mortgages than the 200k. The cost of this borrowing means tha many landlords are not making money on their rentals and are having to put money in to keep the house.

As prices are set to fall further there will be very few people coming into the rental sector. Over time there will be fewer houses available for rent as all new occupiers chose to rent instead of buying and existing renters hold on to their properties for longer as there is no incentive to move into an owner occupier house. As the cost of money goes up ( Savings now attract 5% gross with no effort or work involved to get the money, govt bonds are at a crazy 9%......) then investers will go for the easy option and stop buying houses for rent.

Increased job mobility and lack of security in jobs will mean that people will be increasingly forced into renting temporary accomodation at a distance from their family home and this will increase demand for rental accomodation.

Increased uncertainty, marital discord over money etc will increase demand for rental accomodation as more marriages break up.

In the short term if rent allowances are reduced there may be a small reduction in rents because of this but in the long term, with people too scared to enter the renting business rents will go up in certain areas of high job mobility and movement, eg cities and towns on the East coast and probably the university amd tourist towns.

Snakeblood

doolox wrote: »

At the moment if you take the average price of a dwelling as 200k and the average rent as 1k per month then the return on the investment is 6 percent per annum gross.

Probably many landlords bought at the boom when prices were closer to 300k and are now fielding bigger mortgages than the 200k. The cost of this borrowing means tha many landlords are not making money on their rentals and are having to put money in to keep the house.

As prices are set to fall further there will be very few people coming into the rental sector. Over time there will be fewer houses available for rent as all new occupiers chose to rent instead of buying and existing renters hold on to their properties for longer as there is no incentive to move into an owner occupier house. As the cost of money goes up ( Savings now attract 5% gross with no effort or work involved to get the money, govt bonds are at a crazy 9%......) then investers will go for the easy option and stop buying houses for rent.

Increased job mobility and lack of security in jobs will mean that people will be increasingly forced into renting temporary accomodation at a distance from their family home and this will increase demand for rental accomodation.

Increased uncertainty, marital discord over money etc will increase demand for rental accomodation as more marriages break up.

In the short term if rent allowances are reduced there may be a small reduction in rents because of this but in the long term, with people too scared to enter the renting business rents will go up in certain areas of high job mobility and movement, eg cities and towns on the East coast and probably the university amd tourist towns.

But as people who possess multiple properties go bankrupt at the receivers sell their properties, those will be able to be bought at a reduced rate and then renting to others will become economic again for the new purchasers.

I agree with what you are saying, but I don't think the story ends there.

gurramok

senordingdong wrote: »

Do you not think large numbers of reneters snapping up cheap homes would be good for rent rates?

What you mean good? By cheaper rents? Yes. Thats what I said by the way!

senordingdong

gurramok wrote: »

What you mean good? By cheaper rents? Yes. Thats what I said by the way!

Sorry, just when you said there will be no bright future for renters long term, I thought you meant the rates would rise.