Some good news anyway! Rents still on the up!

The Spider

http://www.cso.ie/en/media/csoie/releasespublications/documents/prices/2013/prices/cpisubindices/pic_jun2013.pdf

Increase of .8% in June that's a 7% increase on this time last year. Son rent of a grand a month it's increasd by 70 euros. Welcome news indeed, well for me and some others around here.

Richard Dower

The Spider wrote: »

http://www.cso.ie/en/media/csoie/releasespublications/documents/prices/2013/prices/cpisubindices/pic_jun2013.pdf

Increase of .8% in June that's a 7% increase on this time last year. Son rent of a grand a month it's increasd by 70 euros. Welcome news indeed, well for me and some others around here.

and very bad news for renters, especially those who rely on assistance...these increases price most people out of the market. and you end up with people living in sub standard accomodation or in high scumbag areas.

The Spider

Richard Dower wrote: »

and very bad news for renters, especially those who rely on assistance...these increases price most people out of the market. and you end up with people living in sub standard accomodation or in high scumbag areas.

To be honest that's a government issue, if a private individual puts their own money and takes the risk of a big loan to buy a place and then decides to rent it out, they're entitled to make as much money from that as the market will allow.

No private individual is obliged to to take on any one, it's their investment they can decide who lives in it.

It's up to the government to provide accommodation for those on assistance.

Rents are still pretty low, in 2002 I was paying 1270 a month for a two bed flat in a basement in Rathmines, inflation alone dictates that rents should be way higher.

Ray Palmer

Rents rising is actually good news for most people in the long term. It will increase demand for purchases as people want to avoid rising rents. Investors in trouble may become stabilised with increased revenue. Investment into rental property will increase providing more supply.

Scotty #

The Spider wrote: »

Rents are still pretty low, ... inflation alone dictates that rents should be way higher.

Nonsense! Celtic Tiger is over! We're officially in recession again. I would expect rents to fall (considerably maybe) over the next 12 months.

The Spider

Scotty # wrote: »

Nonsense! Celtic Tiger is over! We're officially in recession again. I would expect rents to fall (considerably maybe) over the next 12 months.

Nope, aint going to happen, recovery is well under way!

Ray Palmer

Scotty # wrote: »

Nonsense! Celtic Tiger is over! We're officially in recession again. I would expect rents to fall (considerably maybe) over the next 12 months.

Expect to be disappointed all signs are rent is going to keep going up for a while. Recession doesn't mean no money in the country it doesn't even necessarily mean a bad thing and is just natural flow.

viper006

The Spider wrote: »

To be honest that's a government issue, if a private individual puts their own money and takes the risk of a big loan to buy a place and then decides to rent it out, they're entitled to make as much money from that as the market will allow.

No private individual is obliged to to take on any one, it's their investment they can decide who lives in it.

It's up to the government to provide accommodation for those on assistance.

Rents are still pretty low, in 2002 I was paying 1270 a month for a two bed flat in a basement in Rathmines, inflation alone dictates that rents should be way higher.

Part in bold is a good point. The reverse is also true however, people that have taken out big loans for investment are liable to lose as much money as the market allows as well and yet cause these investments havent worked out that happy to let the taxpayer share the burden. Dont think they be so quick to share the profits!!

Scotty #

The Spider wrote: »

Nope, aint going to happen, recovery is well under way!

Not according to latest figures from the CSO.

Ray Palmer wrote: »

Recession doesn't mean no money in the country it doesn't even necessarily mean a bad thing...

You do know what recession means right? I've never ever seen a country go into recession and see it as a good thing! Maybe you could show me one?

House prices IMO are still way too high, though there is a glut of potential first timers out there at the mo. Once they're off the market I think prices will drop again over the next 5 years and rent accordingly.

Just my humble opinion. I could even be wrong

The Spider

viper006 wrote: »

Part in bold is a good point. The reverse is also true however, people that have taken out big loans for investment are liable to lose as much money as the market allows as well and yet cause these investments havent worked out that happy to let the taxpayer share the burden. Dont think they be so quick to share the profits!!

Again this is standard business practice, wherever you go. In the states you could declare yourself bankrupt and walk away, also mortgages are non recourse it's the system here that's flawed.

Regardless the renter has no risk, they are asked to pay for a service that's provided at market rate as that's the law. The landlord carries the burden of risk and in the past few years was probably putting a lot of money towards the rent as the rent achieved fell short of rent required.

Ray Palmer

Scotty # wrote: »

You do know what recession means right? I've never ever seen a country go into recession and see it as a good thing! Maybe you could show me one?

House prices IMO are still way too high imo, though there is a glut of potential first timers other there at the mo. Once they're off the market I think prices will drop again over the next 5 years and rent accordingly.

Just my humble opinion. I could even be wrong

I know exactly what it means and know it is part of the natural process. You might as well say sweating or going to the toilet are bad things. Try being alive doing neither.

I didn't say recession was a good, "not necessarily bad" is not the same thing as saying good. It is a period of readjustment in the normal cycle. Considering how the economy overheated and that we needed things readjusted since then it lets things settle down.

The market is currently still suffering shock. You are basically suggesting property investment will return within 5 years to deal with the rent supply issue. I would say recent events will keep many people away from investing in property for a long time now. The normal FTBs will also be diminished due to fear keeping renting more likely and then you have the fact foreign nationals do typically buy and Dublin has a 20-25% foreign national population it didn't have before. Even if you take it only half rent that is a permanent massive increase in rental demand.

Lots of reason to say rent will be more common for ever more and demand will increase and supply has no signs of increasing.

Find to have a different opinion but you aren't actually saying why other than you think the FTBs will be used up quite quickly. You know there are tons of people in apartment itching to buy a house to raise their families in? That is a lot more pent-up demand than FTB.

Citycap

Scotty # wrote: »

Nonsense! Celtic Tiger is over! We're officially in recession again. I would expect rents to fall (considerably maybe) over the next 12 months.

Maybe in skangerland. Any decent areas is seeing a rise in rents

melekalikimaka

d4/d6 and the likes will maintain their rents, and rise a little, everywhere else will drop and go to the dogs

Pawwed Rig

viper006 wrote: »

Part in bold is a good point. The reverse is also true however, people that have taken out big loans for investment are liable to lose as much money as the market allows as well and yet cause these investments havent worked out that happy to let the taxpayer share the burden. Dont think they be so quick to share the profits!!

Good point and I often wonder why buy to let have the same terms as a mortgage. I am of the opinion that they should be treated as a business loan where if the 'business' goes to the wall then the bank should share in the loss, similar to any business loan.
Having said that they do share the profits by way of taxation. Rental income cannot avail of the standard corporation tax rate (in incorporated) and will be taxed at the IT basis sole traders.

Fiery mutant

Citycap wrote: »

Maybe in skangerland. Any decent areas is seeing a rise in rents

melekalikimaka wrote: »

d4/d6 and the likes will maintain their rents, and rise a little, everywhere else will drop and go to the dogs

So once we leave the environs of D4/D6 we are into skangerland are we ?!?!

The sooner the better that silver spoon comes out your ass the better off the country will be.

Tigger

The Spider wrote: »

To be honest that's a government issue, if a private individual puts their own money and takes the risk of a big loan to buy a place and then decides to rent it out, they're entitled to make as much money from that as the market will allow.

No private individual is obliged to to take on any one, it's their investment they can decide who lives in it.

It's up to the government to provide accommodation for those on assistance.

Rents are still pretty low, in 2002 I was paying 1270 a month for a two bed flat in a basement in Rathmines, inflation alone dictates that rents should be way higher.

i agree
thats why it makes me sick that investors decided to picket alsops

Tigger

Scotty # wrote: »

Not according to latest figures from the CSO.


You do know what recession means right? I've never ever seen a country go into recession and see it as a good thing! Maybe you could show me one?

House prices IMO are still way too high, though there is a glut of potential first timers out there at the mo. Once they're off the market I think prices will drop again over the next 5 years and rent accordingly.

Just my humble opinion. I could even be wrong

of course it is good for some
its also bad for some
rents are rising and will for a long time
the subclasses (scumbaggy areas) are a necessity of capitalism
i hate the system but i still try to find the way to be on top

lima

The Spider wrote: »

http://www.cso.ie/en/media/csoie/releasespublications/documents/prices/2013/prices/cpisubindices/pic_jun2013.pdf

Increase of .8% in June that's a 7% increase on this time last year. Son rent of a grand a month it's increasd by 70 euros. Welcome news indeed, well for me and some others around here.

I hope you are paying the mortgage on your wife's apartment

Repossessions will bring rents down again

lima

Ray Palmer wrote: »

Rents rising is actually good news for most people in the long term. It will increase demand for purchases as people want to avoid rising rents. Investors in trouble may become stabilised with increased revenue. Investment into rental property will increase providing more supply.

When landlords who are not paying their mortgages get their properties repossessed then this may bring rents down

lima

I am paying e1100 for a 1br in D6, which is extremely high (for Dublin*), so my rent won't be going up for a while, and if it does I'm happy to move somewhere else for cheaper rather than paying a cent more.

I'm currently renting because I am waiting for repossessions to happen so once the people who aren't paying their mortgages get their properties rightly repossessed then prices will go down and I might buy. I can guess that a lot of people are like me, waiting with large deposits for more stock to become available and when the repossessions happen, then rents might go down.

* Having lived in London where a 1br can cost gbp1400 pm I do feel that Dublin has cheap rent, relative to other countries, however salaries for renters are probably a lot lower than London, also it's very hard to get a mortgage in London right now due to the very high property prices in London

StillWaters

melekalikimaka wrote: »

d4/d6 and the likes will maintain their rents, and rise a little, everywhere else will drop and go to the dogs

I've been on this site too long. Didn't we have this very same argument last year. Rents are not going to drop and go to the dogs. The rental sector is very buoyant. Investors should move in now and stabilise the Market, but they wont and can't because credit is still restricted. We still have another couple of years of this *I* think. Renters being squeezed due to lack of supply.

murphaph

lima wrote: »

I'm currently renting because I am waiting for repossessions to happen so once the people who aren't paying their mortgages get their properties rightly repossessed then prices will go down and I might buy. I can guess that a lot of people are like me, waiting with large deposits for more stock to become available and when the repossessions happen, then rents might go down.

Do you think the occupants will vanish into thin air? They'll (mostly) become tenants!

khards

The Spider wrote: »

http://www.cso.ie/en/media/csoie/releasespublications/documents/prices/2013/prices/cpisubindices/pic_jun2013.pdf

Increase of .8% in June that's a 7% increase on this time last year. Son rent of a grand a month it's increasd by 70 euros. Welcome news indeed, well for me and some others around here.

I have more great news for you, petrol is going up next week. I think I will crack open a bottle of wine and celebrate!

The Spider

khards wrote: »

I have more great news for you, petrol is going up next week. I think I will crack open a bottle of wine and celebrate!

Do you own a petrol station?

WIZE

This will be bad for Landlords too . You will have tenants who have been renting the same house for years moving out if the rent goes up and unknowns moving in. I know my Landlord would not be happy.

khards

The Spider wrote: »

Do you own a petrol station?

Yes! I think I may put an extra couple of cents on just because I can too.

The Spider

khards wrote: »

Yes! I think I may put an extra couple of cents on just because I can too.

Well if your's is the only one around your area maybe you should, but if there's others around, surely you'll have to match their price, or lose business?

The Spider

WIZE wrote: »

This will be bad for Landlords too . You will have tenants who have been renting the same house for years moving out if the rent goes up and unknowns moving in. I know my Landlord would not be happy.

Landlord doesn't have to put up the rent, and in most cases won't ( we won't) but if they have to relet then they'll probably go for the market rent.

murphaph

WIZE wrote: »

This will be bad for Landlords too . You will have tenants who have been renting the same house for years moving out if the rent goes up and unknowns moving in. I know my Landlord would not be happy.

If rents in general are going up then where are they going to go?

questionmark?

Slight Dublin bias in this thread!

I think house prices are still too high and we need repossessions to happen. It doesn't sound nice but its true. Someone a year behind on their mortgage is a liability and the mortgage noose around there neck is a liability to them.

wrmwit

lima wrote: »

I am paying e1100 for a 1br in D6, which is extremely high (for Dublin*), so my rent won't be going up for a while, and if it does I'm happy to move somewhere else for cheaper rather than paying a cent more.

I'm currently renting because I am waiting for repossessions to happen so once the people who aren't paying their mortgages get their properties rightly repossessed then prices will go down and I might buy. I can guess that a lot of people are like me, waiting with large deposits for more stock to become available and when the repossessions happen, then rents might go down.

* Having lived in London where a 1br can cost gbp1400 pm I do feel that Dublin has cheap rent, relative to other countries, however salaries for renters are probably a lot lower than London, also it's very hard to get a mortgage in London right now due to the very high property prices in London

Jaysus that's a lot of rent for a 1 bed. We live in a 1 bed too in D6 and paying €900. It's a lot but its a nice gaf. Our landlord called during the week and said he's putting the rent up €50 when our lease is up in August. We're not prepared to pay for it but looking at the rental market, especially in the D6 area, it looks like we don't have a choice. The rental market is tough and it's going to stay like that for a while.