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Rents to Rocket?

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    #152
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    Kosseegan wrote: »
    Most buyers tend to buy something bigger than they have been renting. A couple renting a 1 bed apartment may buy a three or four bed house. The result is fewer bed spaces on the rental market.
    You realise that banks are lending only about 4% of what they were during the bubble? Where are people getting the credit to buy all of these houses? There's no shortage of property in Dublin or anywhere else. I've already posted that nearly 20% of apartments in central and south Dublin are unoccupied - they will have to hit the market sooner or later, as they are making no money for anybody sitting empty.


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    #153
    Mr. Loverman
    Closed Accounts Posts: 4,001 ✭✭✭Mr. Loverman


    Kosseegan wrote: »
    A couple renting a 1 bed apartment may buy a three or four bed house.

    I know, I always find that hilarious.


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    #154
    Sean Bateman
    Banned (with Prison Access) Posts: 858 ✭✭✭Sean Bateman


    Mr. Loverman wrote: »
    Kosseegan wrote: »
    A couple renting a 1 bed apartment may buy a three or four bed house.

    I know, I always find that hilarious.

    Why do you find that hilarious?

    Purely anecdotal, but view (from a landlord's perspective) is that it's very easy to rent out property at the moment.


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    #155
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    Sean Bateman wrote: »
    Why do you find that hilarious?

    Purely anecdotal, but view (from a landlord's perspective) is that it's very easy to rent out property at the moment.
    The notion that someone renting a one-bed apartment will suddenly find the money to buy a 3/4 bed house when available credit has collapsed by about 96%?

    I'm sure landlords have no trouble renting at the moment with thousands of apartments in Dublin alone being kept off the market.


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    #156
    daltonmd
    Registered Users Posts: 1,246 ✭✭✭daltonmd


    Ray Palmer wrote: »
    As they already cut ra and rent didn't go down people may have misjudged the relationship.

    Rents showed a decline in April, 3 months after the reduction - but it's too early to tell as of yet what the full impact will be - and of course RA will be hit again.
    Ray Palmer wrote: »
    RA is actually meant to follow rent and it has been taken that it has been leading it.


    Yes, it put an artificial floor on the private rental market where many landlords, while not happy to house RA tenants were quite happy to base their rents on it.
    Ray Palmer wrote: »
    Lots of people subsidise RA as is.

    And when the cost of living rises again or their beneifits are hit again? Where will they get these illegal payments from?

    Ray Palmer wrote: »
    If you were to slash it you are more likely to end up with property in places non RA tenants wont live. A lot of the LL won't even accept it as is so likely not to effect them.

    lol, yea yea, as I said they refuse to accept SW yet happily base theri rents on the RA...


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    #157
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    Ray Palmer wrote: »
    As they already cut ra and rent didn't go down people may have misjudged the relationship. RA is actually meant to follow rent and it has been taken that it has been leading it.
    Lots of people subsidise RA as is. If you were to slash it you are more likely to end up with property in places non RA tenants wont live. A lot of the LL won't even accept it as is so likely not to effect them.
    That's a myth. There are enough LL who do accept them and enough RA renters that it puts an artificial floor on the market. The mechanics are different, but it's a bit like suggesting that the minimum wage has no effect on the employment market.


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    #158
    daltonmd
    Registered Users Posts: 1,246 ✭✭✭daltonmd


    On reading through the thread it is clear to me that IF rents were about to "rocket" then there would be a rush of investors coming into the market.
    The banks would have no problem lending to savvy investors with cash savings if they thought that to be the case.

    The problem is that investors aren't convinced and maybe these reasons explain why:

    NAMA - The knowledge that at any time the agency could flood the market with cheap properties.

    Further cuts to Social Welfare and Rent Allowance - as has been said, this will impact rents.

    Water Charges - These will obviously be the tenants responsibility - someone suggested here that 50 quid is "nothing" for tenants to pay extra on rent.
    Tenants DO NOT have an INFINITE sums of money.

    Falling disposable income through tax increases - Self explananatory.

    Anecdotal - I know two people renting houses in high demand/low supply areas, rents have NOT increased, rather these people moved 10 miles down the road - saving 400 Euro each per month in rent.

    People will move to save amounts like that. People will be driven out, rather than driven to pay high rents.


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    #159
    Sean Bateman
    Banned (with Prison Access) Posts: 858 ✭✭✭Sean Bateman


    Monty Burnz wrote: »
    Sean Bateman wrote: »
    Why do you find that hilarious?

    Purely anecdotal, but view (from a landlord's perspective) is that it's very easy to rent out property at the moment.
    The notion that someone renting a one-bed apartment will suddenly find the money to buy a 3/4 bed house when available credit has collapsed by about 96%?

    I'm sure landlords have no trouble renting at the moment with thousands of apartments in Dublin alone being kept off the market.

    Fair enough, but many young professionals
    are in that exact position...they've rented apartments for a number of years and are now taking the plunge to buy a 3/4 semi.


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    #160
    Zamboni
    Registered Users Posts: 4,305 ✭✭✭Zamboni


    Sean Bateman wrote: »
    Fair enough, but many young professionals
    are in that exact position...they've rented apartments for a number of years and are now taking the plunge to buy a 3/4 semi.

    Is there any evidence for this?
    And where are they getting credit?


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    #161
    Hollister11
    Closed Accounts Posts: 5,482 ✭✭✭Hollister11


    I know hindsight is 20/20, but this is quite funny.


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    #162
    jimmycrackcorm
    Registered Users Posts: 14,339 ✭✭✭✭jimmycrackcorm


    whippet wrote:
    The Indo & the Construction Industry Federation are talking about a lack of supply .. they must be telling the truth and this elusive bottom of the market has been found !!!

    Ah the irony is delicious unless you're looking to rent.


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    #163
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Guys- please don't bump zombie threads.


This discussion has been closed.
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