Rent Prices are Crazy

sponsoredwalk

Thanks very much for the offer, I genuinely do appreciate it but it's asking far far too much of me, but thanks :cool:

Big Cheese

We rented a 1Bed near Carrickmines for 950 2 years ago. We are moving out now and it has been relisted for 1150. 200 in 2 years?!! If they can charge it they will!!

FairytaleGirl

This post blows my mind.
Granted I live in Derry, but I pay £400 a month for a big two bedroom flat with an open fire and big front and back garden.

A three bedroom house here about 5 min drive from town centre is about 500

rawn

My brother and his friends were renting a 3-bed house in Blanchardstown, nice enough, nothing fancy, in fact it was in a particularly unpleasant area by most people's standards. They were renting it for about 4 years at €850 pm, they moved out a few months ago and it was relisted at €1350, and was snapped up within a week. I can only imagine the rent increases in the city.

Penny Tration

My dad is renting a lovely, big, 2 bed apartment in a nice suburb, 10 minutes from Dublin City Centre for 650pm,but the apartment next to him is basically the same, and twice the price :eek:

asingrang

We rent a holiday home in Kerry for €225 PM. Have had it for about 3 years now. It was €200PM for the first two years but went up to €225 this year.

We were going to buy one a few years ago, but this is much cheaper.

The Landlord is happy because its only used during the odd weekend and most of the summer. Less wear and tear.
He doesnt have to let it every week if it was a normal holiday let.
Sometimes we go for a week even in the winter just to get away.

We are happy because its always available and a weekend in a hotel would cost the monthly rent anyway.
And we dont have to pay interest on a mortgage, or worse have bought in cash and be losing out on the investment value of our money.
Plus, anything goes wrong and the landlord will fix it.

Tarzana

green_screen wrote: »

My dad is renting a lovely, big, 2 bed apartment in a nice suburb, 10 minutes from Dublin City Centre for 650pm,but the apartment next to him is basically the same, and twice the price :eek:

How is he managing that? I'd be expecting a rent rise if I were him!

Penny Tration

Tarzana wrote: »

How is he managing that? I'd be expecting a rent rise if I were him!

He only moved in two months ago, so no rise til his 3 year fixed term lease expires! The landlord said he doesn't need the money, just wants a good tenant

Tarzana

green_screen wrote: »

He only moved in two months ago, so no rise til his 3 year fixed term lease expires! The landlord said he doesn't need the money, just wants a good tenant

Jammy git. :pac:

gaius c

FairytaleGirl wrote: »

This post blows my mind.
Granted I live in Derry, but I pay £400 a month for a big two bedroom flat with an open fire and big front and back garden.

A three bedroom house here about 5 min drive from town centre is about 500

Yeah but Derry isn't the centre of the universe like Dublin, where a house hasn't been built in decades!

athtrasna

green_screen wrote: »

He only moved in two months ago, so no rise til his 3 year fixed term lease expires! The landlord said he doesn't need the money, just wants a good tenant

Even with a lease in place the landlord can increase the rent once a year, and there's probably scope for that in the lease.

ChRoMe

FairytaleGirl wrote: »

This post blows my mind.
Granted I live in Derry, but I pay £400 a month for a big two bedroom flat with an open fire and big front and back garden.

A three bedroom house here about 5 min drive from town centre is about 500

What percentage of your take home pay goes on rent?

FairytaleGirl

ChRoMe wrote: »

What percentage of your take home pay goes on rent?

A third roughly, and that's me paying the whole £400 and in a generally low paid job

athtrasna

MusicFanatic wrote: »

The prices are ridiculous considering the respective quality of the accommodation. I couldn't believe it when I heard that the rent prices in Dublin are currently the same as in Los Angeles wtf like?!? I think there should be a protest against the rent prices, students have been urged to look for hostels...now that's bad! It's not fair that you're expected to pay so much to live in squalor. Landlords should be put in their (cardboard)boxes!

It's supply and demand. Not the fault of any landlord

Pawwed Rig

MusicFanatic wrote: »

The prices are ridiculous considering the respective quality of the accommodation. I couldn't believe it when I heard that the rent prices in Dublin are currently the same as in Los Angeles wtf like?!? I think there should be a protest against the rent prices, students have been urged to look for hostels...now that's bad! It's not fair that you're expected to pay so much to live in squalor. Landlords should be put in their (cardboard)box!

Why is Los Angeles a good comparison? 2 very different cities in that LA really lacks a centre of commerce so everything is much more spread out than in Dublin. Also consider the near unlimited space and lack of planning restrictions in LA coupled with the fact that it is the biggest city in the richest state in the richest country on Earth. A more reasonable comparison of rents would be Manchester, Copenhagen, Amsterdam, Stockholm or other such places. Even at that you need to consider other factors. In UK for example the tenants pay the local council tax which considerably increases the cost of renting there. You will find that in every city in the western world where renting is a significant part of the life of a city that the economic laws of supply and demand follow. Dublin is therefore no different.

quadrifoglio verde

MusicFanatic wrote: »

Supply and demand causes inflation of the prices but Landlords take advantage of that so it is in fact their fault because they're in control!

No it's not, the tenant decides the price. A landlord will only charge what the tenant is willing to pay, likewise brown thomas will only charge what a customer is willing to pay for a Gucci handbag and a lady of night will charge what a punter is willing to pay.
In all three scenarios they want to maximise the profit, so it makes no sense for them to charge half what someone else is willing to pay.

If I've a 2bed flat in donegal asking 2k and tenants are only willing to pay 1500, then I've to either drop the price or let it lie idle. The reverse happens when I've 20 tenants willing to pay 2k and I can chose the best one.

quadrifoglio verde

MusicFanatic wrote: »

Yes I know all of that already, I studied all about it! I didn't state that LA was a 'good' comparison I was merely quoting the news and they wouldn't broadcast that fact unless it proved that the current rent prices are obviously ludicrous. LA is one of the top ten richest cities in the world. Now there is some comparison with the two standard of living wise, weather etc. The fact clearly delineates how exorbitant the rent prices are in Dublin. Due to one of the causes of the destruction of the economy of the country, greed.

No, due to the demand for rental properties outstripping supply.
If I need a roof over my head and the only available place that I like has someone offering 500, Ill be offering 600. Thats whats happening out there.
Would I be happy paying 600, god no, but Id be happier having somewhere where I can live.

Bepolite

In all honesty Dublin isn't that crazy when compared to like lies of Oxford. The reason I use that comparison is there is no building going on there due to the land being owned by the University. The transport links are also less than stellar. The prices are insane, higher than Dublin, simple supply and demand.

When you look at somewhere like London, what people pay per month is what people pay per week there. Wages are not massively higher. The difference is you can live 60 miles outside London and make it in in under an hour.

There are a myriad of issues in Dublin, transport being a major factor. The biggest issue IMHO is the boom/bust cycle. This really needs to be addressed. Rents need tighter controls, not in relation to prices, the market takes care of that - but in relation to the regulations surrounding the quality of what on offer, taxation of rental income and deposits. Not to mention systems need to be put in place to ensure landlords get quality tenants such as credit referencing.

Grandpa Hassan

MusicFanatic wrote: »

Yes I know all of that already, I studied all about it! I didn't state that LA was a 'good' comparison I was merely quoting the news and they wouldn't broadcast that fact unless it proved that the current rent prices are obviously ludicrous. LA is one of the top ten richest cities in the world. Now there is some comparison with the two standard of living wise, weather etc. The fact clearly delineates how exorbitant the rent prices are in Dublin. Due to one of the causes of the destruction of the economy of the country, greed.

Whose greed? Landlords? Don't talk nonsense. Landlords can only charge what tenants pay. If tenants bid up the rent between themselves to get the property they want, it's not the landlords fault!!

Neon_Lights

The massive influx of foreigners has exacerbated rent prices exorbitantly. Most of whom want centrally located housing. I don't blame them and theyre well entitled to be here, but this is a major stem of the problem as they do not haggle they just pay whatever (i've seen this first hand with previous colleagues). The multinationals who hire here have propagated this also and not only do they not pay much tax, they dont visibly do much to quell this issue.

And the government, even with the added tax from paye that they do obtain from this, if not more, why do they not propagate housing initiatives or incentives for people that actually generate the tax. Not social housing for some pox bag that sits around and drinks cans all day, theyd just be as well off in a tent.

There is a major accountability issue here, and the landlords, as much as we complain they up they price, they are essentially a business. Its only fair that they can up the price where possible.

rawn

Neon_Lights wrote: »

they are essentially a business. Its only fair that they can up the price where possible.

I agree with this, they're not a charity. But do they not see in the papers and on the news all the time about families being made homeless every day due to massively increased rent and think "well, I don't want to be responsible for that", and increase by a fair amount what their tenants can afford? I'm talking about existing tenants, not new ones. With new tenants, yes by all means ask for the the market rate.

Neon_Lights

rawn wrote: »

I agree with this, they're not a charity. But do they not see in the papers and on the news all the time about families being made homeless every day due to massively increased rent and think "well, I don't want to be responsible for that", and increase by a fair amount what their tenants can afford? I'm talking about existing tenants, not new ones. With new tenants, yes by all means ask for the the market rate.

Its subjective to them, they are a wide group of people, control the masses, its very hard. They do control price, but to be fair if a family cant afford it they really should not be living there.

The government and the multinationals here need to pay their dues in this respect and provide intiatives that dont detriment the population at large due to their presence here.

I will concede though, it's really frustrating not being able to find a reasonably priced place in the centre of my own town. A person that would take care of a place, as opposed to some person who only is here to pillage and exploit our resources.

Grandpa Hassan

rawn wrote: »

I agree with this, they're not a charity. But do they not see in the papers and on the news all the time about families being made homeless every day due to massively increased rent and think "well, I don't want to be responsible for that", and increase by a fair amount what their tenants can afford? I'm talking about existing tenants, not new ones. With new tenants, yes by all means ask for the the market rate.

I am sure they do. But should the LL effectively take money from his pocket to give to the tenant through not charging market rate? Is this not the job of the State? To share the subsidy of a struggling tenant across all taxpayers instead of one individual LL?

Pawwed Rig

Grandpa Hassan wrote: »

I am sure they do. But should the LL effectively take money from his pocket to give to the tenant through not charging market rate? Is this not the job of the State? To share the subsidy of a struggling tenant across all taxpayers instead of one individual LL?

Exactly. The LL pays taxes which contribute to a social welfare budget to help the people described. You will find many many landlords that where they have a good tenant in place will not increase rent as good tenants can be worth their weight in gold. It is fairly naive to think that a LL is the sole reason some people are struggling now. It is the job of the government to address this rather than individual business people.

HarryLime

Out of interest, how do current rental prices compare to levels they were at in 2006/2007? I was living abroad back then, so wasn't paying rent in Dublin myself. But from what I recall they were pretty high? Then there was a period when tenants were able to negotiate rents down with some substantial discounts for a few years, before rents started creeping up again in last year or so?

I was talking to a friend who rents out a place he owns close to city center. He was saying that before the recession he was renting it out for 1400 euros, then had to reduce it to 900 euros in 2008 or 2009 to get it rented out again, and he now rents it for 1150 euros. But 1400 sounds pretty high to me! Would current rents still be pretty much a bit below where they were in 2006/2007?

sponsoredwalk

Well I know that around 2009-2010 I used to look at e300 apartments that are now 500, thinking I could move out and actually survive as I went to college, dreams

jay0109

I rented a gaff in D6W for 1,500 at the peak and this dropped to 1,200 within 2 years. Similar are now going for 1,500 - 1,600 from what I've seen on DAFT in the past few weeks

keith16

Rents are gone bananas.

I'm looking at a monthly increase to E1,600, that's almost half of my net monthly salary.

People will scorn "move somewhere cheaper".

Maybe that's fair enough, but then your looking at a longer commute to work which impacts quality of life. Significantly IMO.

Rent rates are just not sustainable one way or the other (even back in the days where tenants could play hardball with LLs and now, vice versa).

It's a pretty crap situation either way and if rent rates were sustainable like they are in many other European countries then you would have a much healthier economy IMO. You just can't apply 1st year supply and demand economics to something like housing, or at least, you shouldn't be able to. Clearly, Ireland can, but then again, sustainable growth has never been in our vocabulary.

In any case, I'm fed up with the greed that permeates our nation.

drumswan

Nobody gives a toss about private renters, we have no political voice. The left is only concerned about poor social welfare recipients and the right is only concerned with the debt-lovers in the mortgage sector

gaius c

FairytaleGirl wrote: »

A third roughly, and that's me paying the whole £400 and in a generally low paid job

A third is pretty reasonable and would be what you'd expect to pay in most western countries.

Of course, I don't need to tell you that you could probably get much much cheaper and save loads![/mammymode]