Will the rental market stay high in areas like D8.

Procrastastudy

So as some of you know I bought in the boom, the mega boom, but I'm still a fairly happy chappy because if I was renting I'd be paying bonkers money for the hovel I inhabit.

Recently I was thinking of renting a two bed and renting out my place. I did a bit of research as was frankly shocked. 1 bed apartments being rented out at €800 in places like the Maltings.

Do people think these rents are going to stay like this. It's now possible to buy a 2 bed apartment under €100,000. I'm thinking of doing so - renting out casa de hovel for €800 which will cover rent, management fees and leave be a bit left over. I should say I'd be buying the new place for cash - seems a more sensible option than punting the 100K into my 200K mortgage.

I realise I may as well be asking you to predict the future but well its all good fun.

EDIT where I currently live aprtments for rent take about 5 minutes to fill... opinions on whether that will continue also welcome.

liffeylite

Procrastastudy wrote: »

So as some of you know I bought in the boom, the mega boom, but I'm still a fairly happy chappy because if I was renting I'd be paying bonkers money for the hovel I inhabit.

Recently I was thinking of renting a two bed and renting out my place. I did a bit of research as was frankly shocked. 1 bed apartments being rented out at €800 in places like the Maltings.

Do people think these rents are going to stay like this. It's now possible to buy a 2 bed apartment under €100,000. I'm thinking of doing so - renting out casa de hovel for €800 which will cover rent, management fees and leave be a bit left over. I should say I'd be buying the new place for cash - seems a more sensible option than punting the 100K into my 200K mortgage.

I realise I may as well be asking you to predict the future but well its all good fun.

EDIT where I currently live aprtments for rent take about 5 minutes to fill... opinions on whether that will continue also welcome.

I think this is a really interesting point. Its actually cheaper to buy in central dublin than it is to rent. There are good yields to he had if you can get a deposit and mortgage. I personally think the rent prices will stay high, as long as there isnt a flood of properties onto the market and Dublin continues to create employment in the way it has been.

sunnysoutheast

liffeylite wrote: »

I think this is a really interesting point. Its actually cheaper to buy in central dublin than it is to rent. There are good yields to he had if you can get a deposit and mortgage. I personally think the rent prices will stay high, as long as there isnt a flood of properties onto the market and Dublin continues to create employment in the way it has been.

There was a thread on here a while back about a guy who was building up a portfolio of 1 bed apartments in Dublin and getting excellent yields, haven't seen any updates for a while though. Think it was something like Darren's adventures.

Chris_5339762

I think this is one thing that will produce that must maligned "floor" in the property market. More and more people will realise how much cheaper it is (per month anyway) to buy an apartment than rent it. And they'll be looking for fairly small mortgages too which the banks may give out. Couple this with proof for the bank that the buyer can pay that amount of money back; after all they'll have been paying more in rent and will pass the 6% or 7% tests the banks use.

liffeylite

Chris_5339762 wrote: »

I think this is one thing that will produce that must maligned "floor" in the property market. More and more people will realise how much cheaper it is (per month anyway) to buy an apartment than rent it. And they'll be looking for fairly small mortgages too which the banks may give out. Couple this with proof for the bank that the buyer can pay that amount of money back; after all they'll have been paying more in rent and will pass the 6% or 7% tests the banks use.

Will check that one out. The thing is, rents are increasing in central Dublin and its no surpris when there are less properties to rent daft.ie says there are 40% less places to rent than 12 months ago. If that continues and few new builds are started, the rents will almost certainly keep rising. Providing Dublin can hold its unemployment rate at around the current 10-11%

To me, there is a big market for rental holiday apartments. Dublin is still in the top 6 european cities in visitor numbers and the prices the big traditional appartments charge are uneal. If you could buy a 3 bed apartment for 200kish and rent it to tourist groups you could rake it in.

StillWaters

It seems a sensible option procrastastudy. Only downside I can see (if you already know the pitfalls of being a LL, which I'm sure you do being a regular here), is the fact that should you wish in the future to move back to your original home, you will have no mortgage to offset against the rental income on your new apartment.