Are rising rents making buying a better option?

goodie2shoes

Recent figures suggest rents are rising. Record numbers continue to rent, with little to show for it. Many cannot get mortgage approval.

Is rent dead money?

Is it now time to consider buying?

http://www.independent.ie/national-news/hope-for-housing-market-now-its-cheaper-to-buy-than-rent-3286129.html

eggwhitelad

most definitily yes

Would never rent

Gonna buy in two years :)

Wossack

ah shure renting is just paying someone elses mortgage! a fat cat too, no doubt

goodie2shoes

Wossack wrote: »

ah shure renting is just paying someone elses mortgage! a fat cat too, no doubt

but doesn't renting offer one great flexibility, and the chance to live in a great area like Rathmines?

eggwhitelad

Dont get why anyone would waste there money on rent when you could easily get a nice 3 bed in dublin in good area for around 170k

the mind boggles

petes

eggwhitelad wrote: »

Dont get why anyone would waste there money on rent when you could easily get a nice 3 bed in dublin in good area for around 170k

the mind boggles

Maybe they can't get a mortgage. Where will they live while trying to save if working?

RobbieTheRobber

eggwhitelad wrote: »

Dont get why anyone would waste there money on rent when you could easily get a nice 3 bed in dublin in good area for around 170k

the mind boggles

Your definition of a good area and mine must be different.

goodie2shoes

RobbieTheRobber wrote: »

Your definition of a good area and mine must be different.

what is yours?
how much are houses there?

syklops

With so many empty properties around how are rents going up?

A quick glance on daft and comparing the prices for Dublin City centre from about 4 years ago when i left they have dropped quite a bit. Back then a one bed apartment was about 1200 minimum unless you were happy putting up with some ridiculous flaw(such as the bathroom being in another part of the building).Now theres a nice looking flat on Gardiner Street for 800. Thats nearly half of the asking price about 5-6 years ago.

So yeah, who says rents are going up?

jester77

Much easier to leave a rented accommodation when you need emigrate.

Akrasia

If house prices are still falling by 10% a year (as they still are in a lot of places) then a house that is currently on sale for 120000 will be 12000 cheaper next year.

If your rent is less than 1500 a month then you're financially better off waiting an extra year essentially, depreciation + cost of the mortgage for 12 months will be at least 20 grand
Not to mention the longer term cost. With interest, the extra 12000 you would have to borrow would end up costing over 20 thousand over the course of a 30 year mortgage.

Not to mention the Property tax when that is introduced, plus the cost of maintaining the property which is the responsibility of the landlord in a private rental...

While property prices are falling, it makes no sense to buy. The sums only add up when property prices are rising at least at the rate of inflation.

MagicMarker

We all rent, some of us pay rent to a landlord, some of us pay rent to the bank.

goodie2shoes

MagicMarker wrote: »

We all rent, some of us pay rent to a landlord, some of us pay rent to the bank.

very true, but the landlord aint gonna give you his house in 20 years time, is he?
(not unless you get his daughter up the pole?)

goodie2shoes

Akrasia wrote: »

If house prices are still falling by 10% a year (as they still are in a lot of places) then a house that is currently on sale for 120000 will be 12000 cheaper next year.

If your rent is less than 1500 a month then you're financially better off waiting an extra year essentially, depreciation + cost of the mortgage for 12 months will be at least 20 grand
Not to mention the longer term cost. With interest, the extra 12000 you would have to borrow would end up costing over 20 thousand over the course of a 30 year mortgage.

Not to mention the Property tax when that is introduced, plus the cost of maintaining the property which is the responsibility of the landlord in a private rental...

While property prices are falling, it makes no sense to buy. The sums only add up when property prices are rising at least at the rate of inflation.

property prices have increased for the last 4 months!

IvyTheTerrible

goodie2shoes wrote: »

property prices have increased for the last 4 months!

I'd be interested to see where you got that information.

Gummy Panda

goodie2shoes wrote: »

Recent figures suggest rents are rising. Record numbers continue to rent, with little to show for it. Many cannot get mortgage approval.

Is rent dead money?

Is it now time to consider buying?

http://www.independent.ie/national-news/hope-for-housing-market-now-its-cheaper-to-buy-than-rent-3286129.html

Are you a estate agent?

goodie2shoes

jester77 wrote: »

Much easier to leave a rented accommodation when you need emigrate.

friends of mine are renting their house while in Sweden.
they have a smallish mortgage, so the extra cash comes in very handy.

jaykay74

You should have just bumped one of the other "property on the up" threads you've started in AH in the last couple of months.

Good time to buy property?
http://www.boards.ie/vbulletin/showthread.php?p=78775147

Property prices are on the way back up!
http://www.boards.ie/vbulletin/showthread.php?p=79394179

More "evidence" of property prices going up?
http://www.boards.ie/vbulletin/showthread.php?p=80992377

Are rising rents making buying a better option?
http://www.boards.ie/vbulletin/showthread.php?p=81627747

Lombardo86

Renting allows me to live in an area which i cannot afford to live in should i want to buy at the moment.

It allows me to still save money which will in turn increase me savings (!) and at the time i feel the need to buy, i can get a larger mortgage to live in a nicer area with the additional money i have. The way i see it, i am going to be paying it for 30 years anyway, why does it matter whether it until im x or x+3 years old.

I do not have to fix or pay for anything that gets broken and floors/furniture are included in rent.

I think the people who think renting is dead money need to do some reading up. I am sick of making the same points over and over again..

As someone above said (incorrectly), the mind boggles

goodie2shoes

Gummy Panda wrote: »

Are you a estate agent?

No.
Thank God!

Q. why don't EAs open their blinds in the morning?
A. 'cos they like to have something to do in the afternoon.

shed head

goodie2shoes wrote: »

very true, but the landlord aint gonna give you his house in 20 years time, is he?
(not unless you get his daughter up the pole?)

he aint going to charge you double either though like a mortgage!

jester77

goodie2shoes wrote: »

friends of mine are renting their house while in Sweden.
they have a smallish mortgage, so the extra cash comes in very handy.

But they still would have had to find tenants. What happens if something breaks down, it's a long trip back from Sweden to check things out. If the tenants move out, they could be left with an empty house for a few months.

MagicMarker

goodie2shoes wrote: »

very true, but the landlord aint gonna give you his house in 20 years time, is he?
(not unless you get his daughter up the pole?)

Very true, but with the money I'll save by not paying interest on a mortgage or paying maintenance fees on a property, I'll be off living the good life free to move about as I please. While you'll be stuck in your 170k property that you've actually spent 250k on, but which is only worth 130k.

goodie2shoes

jaykay74 wrote: »

You should have just bumped one of the other "property on the up" threads you've started in AH in the last couple of months.

Good time to buy property?
http://www.boards.ie/vbulletin/showthread.php?p=78775147

Property prices are on the way back up!
http://www.boards.ie/vbulletin/showthread.php?p=79394179

More "evidence" of property prices going up?
http://www.boards.ie/vbulletin/showthread.php?p=80992377

Are rising rents making buying a better option?
http://www.boards.ie/vbulletin/showthread.php?p=81627747

the MODS warned me against that, so i better not.
besides this thread is dealing specifically with the choice between RENTING Vs BUYING.

goodie2shoes

jester77 wrote: »

But they still would have had to find tenants. What happens if something breaks down, it's a long trip back from Sweden to check things out. If the tenants move out, they could be left with an empty house for a few months.

mutual friends have moved in, so that's not really an issue for them.

syklops

IvyTheTerrible wrote: »

I'd be interested to see where you got that information.

And who commissioned the report. The united guild of Estate Agents?

goodie2shoes

MagicMarker wrote: »

Very true, but with the money I'll save by not paying interest on a mortgage or paying maintenance fees on a property, I'll be off living the good life free to move about as I please. While you'll be stuck in your 170k property that you've actually spent 250k on, but which is only worth 130k.

there's a lot of assumptions in there.

sfwcork

I rent.Not because I want to but Because I have to. Banks are not giving out mortgages as easily as what they use to.I agree its dead money though but what an one do

Caught on both places

RobbieTheRobber

goodie2shoes wrote: »

what is yours?
how much are houses there?

decent areas in dublin for a 3 bed are probably looking at around starting the 250k mark.

handlemaster

There are lot of 'cheap' properties if you look at mortgage repayments as against what you would have to pay in rent. But with the property tax coming and new budget.. anyone considering buying would be best to hold off until mid next year to see how the market is then

Seaneh

goodie2shoes wrote: »

Recent figures suggest rents are rising. Record numbers continue to rent, with little to show for it. Many cannot get mortgage approval.

Is rent dead money?

Is it now time to consider buying?

http://www.independent.ie/national-news/hope-for-housing-market-now-its-cheaper-to-buy-than-rent-3286129.html

Hey, op, aren't you either an employee of, or infact yourself a mortgage broker?

Propaganda!


You have started a disproportionate amount of threads about how now is the bets time to buy a house, rent is pointless, poroperty prices raising, buy buy buy, etc.

I thought there was a rule against shills posting on boards?

Larbre34

Last Wednesday I made an offer of 165,000 on a house listed for 240,000, an extended and renovated small Council built semi from the 1940s with 2 usable bedrooms and a boxroom. The agent cut to the chase and said if I went to 182,500 I could have it.

Thats the real pricing level out there, the supposed increases are what Bertie would call smoke and daggers.

Of course buying makes more sense than renting, if I bought that place my 80% mortgage would cost me €700 or so per month but I couldnt rent a similar house for less than €1,100, however for anyone entering the mortgage market the conditions are simply prohibitive and where would a young couple get €30,000 for a deposit these days.

In the heady days you could buy a €500k on 100% with loose conditions, now you can barely get a €200k on 80% with draconian conditions - until the balance is struck to normalise the market you'd be wasting your time expecting increases

jester77

goodie2shoes wrote: »

mutual friends have moved in, so that's not really an issue for them.

Until the friends have to emigrate.

handlemaster

Larbre34 wrote: »

Last Wednesday I made an offer of 165,000 on a house listed for 240,000, an extended and renovated small Council built semi from the 1940s with 2 usable bedrooms and a boxroom. The agent cut to the chase and said if I went to 182,500 I could have it.

Thats the real pricing level out there, the supposed increases are what Bertie would call smoke and daggers.

Of course buying makes more sense than renting, if I bought that place my 80% mortgage would cost me €700 or so per month but I couldnt rent a similar house for less than €1,100, however for anyone entering the mortgage market the conditions are simply prohibitive and where would a young couple get €30,000 for a deposit these days.

In the heady days you could buy a €500k on 100% with loose conditions, now you can barely get a €200k on 80% with draconian conditions - until the balance is struck to normalise the market you'd be wasting your time expecting increases

so did you buy ?
Bertie now thats a blast from the past

UCDVet

As it's always been - buying makes more sense, for most people, if you are going to stay in one place for a long time.

Renting gives you flexibility you don't otherwise have with buying. Leases are mostly a joke and if you are willing to lose you deposit you can pretty much just walk away and never hear about it again.

Can't do that with buying.

sfwcork

I think people need to take into consideration how difficult it is to get a mortgage!

Also no point paying for a house if its overpriced just to have one

Market still doesnt seem level to me

but then again what would I know

goodie2shoes

jester77 wrote: »

Until the friends have to emigrate.

i don't think that's an issue tbh, but thank's for trying.

syklops

UCDVet wrote: »

As it's always been - buying makes more sense, for most people, if you are going to stay in one place for a long time.

Renting gives you flexibility you don't otherwise have with buying. Leases are mostly a joke and if you are willing to lose you deposit you can pretty much just walk away and never hear about it again.

Can't do that with buying.

Many people would have you think you can do that. "Shure I'll just post back they keys to the bank and they can keep the flat screen telly...".

Larbre34

handlemaster wrote: »

so did you buy ?
Bertie now thats a blast from the past

I only thought of Bertie cos I heard the Mater hospital site being credited to him as a stroke this morning!

No, havent bought it yet, Im looking at another place thats appeared and the budget deadline isnt relevant to me

sfwcork

wrote:

Larbre34

I only thought of Bertie cos I heard the Mater hospital site being credited to him as a stroke this morning!

No, havent bought it yet, Im looking at another place thats appeared and the budget deadline isnt relevant to me

boards house warming partyyyyy when its done.Whoop Whoop

Zamboni

goodie2shoes wrote: »

besides this thread is dealing specifically with the choice between RENTING Vs BUYING.

Just a point of note - There is no evidence, other than anecdotal that rent is rising.
A DIT analysis of Daft figures is;
- an interpretation
- of asking prices
- submitted by EA's and landlords
- with biased and conflicting interests

Also, even if a monthly mortgage repayment is cheaper than a monthly rental price for the same property - that is only one variable in the plethora of variables that need to be accounted for in a true Rent V Buy equation.
It is insufficient information to make an informed purchase decision.

Try harder next time.

humanji

Take it to the accommodation forum.