Is it time to be content with renting and not have notions of buying ?

marathonic

NewDirection wrote: »

The government bringing in the old NPPR or changing the tax relief on interest from 100% to 75% a few years back are populist moves, that look like they are tackling the 'rich landlord', but really they are pushing rents up by squeezing landlords out of the market because its no longer profitable, reducing supply for tenants.

Exactly. You've got to love how tenants cheer on such moves that increase the tax liability of landlords yet complain when landlords increase rent - due, in part, to the exact policies that they so vehemently support.

My brother in Perth rents an Irish property and, for years, charged a below market rent. The income and expenses related to the property were managed through his Irish account which he rarely looks at.

It's only when these additional taxes resulted in him needing to subsidize his Irish account that he looked into increasing the rent charged.

The rent has now been increased for the tenant, a tenant who was probably an advocate of the policies that has resulted in the increased rent he is now paying - and he is certainly not alone.

The_Conductor

Moderator note:

No more mention of Marxist theories by anyone please. If you want to debate Marxist theories- take it elsewhere.

Barely Hedged

gaius c wrote: »

You appear to be forgetting that the tenant is down €400 a month, which equates to €800 a month of pre-tax income.

My reply was to the statement that landlords are a leech on society and all their "excess" income is hoarded and not redistributed. It's plainly not the case. The government are doing a very good job at hoovering the excess up

Eugene Norman

marathonic wrote: »

Exactly. You've got to love how tenants cheer on such moves that increase the tax liability of landlords yet complain when landlords increase rent - due, in part, to the exact policies that they so vehemently support.

My brother in Perth rents an Irish property and, for years, charged a below market rent. The income and expenses related to the property were managed through his Irish account which he rarely looks at.

It's only when these additional taxes resulted in him needing to subsidize his Irish account that he looked into increasing the rent charged.

The rent has now been increased for the tenant, a tenant who was probably an advocate of the policies that has resulted in the increased rent he is now paying - and he is certainly not alone.

Rent increases are market driven. Nothing else matters. If the market were weak your brother would have to put up or sell.

Eugene Norman

Barely Hedged wrote: »

So if we take the example of a 2 bed property thats currently being let in Dublin say at 1.6k and its normal market level (whatever the hell that means) is 1.2k.

So a €400 spread between the two a month. What happens that €400 of "excess" you classify it as? Over €200 goes in a direct income tax grab.

Were down to €200 of excess now. Water charges and LPT are probably another €80 - €100 a month on top of that?

So we have the situation where nearly 75% of the unearned income is taken in a tax grab and redistributed via the government. In this case, its not being hoarded away - hardly a consequence of unearned income

So you charged the water and lpt to the extra income rather than total income? And renters pay the former. Tax has nothing to do with the definition of earned income.

Grandpa Hassan

KomradeBishop wrote: »

Any business based on excessive and expanding unearned income - as described in my post above - is a leach. Rent on property is one of the primary examples - when it becomes excessive - of unearned income.

So if there is no incentive for private property owership the government owns all rental stock. Is that your utopia?

The_Conductor

Moderator note:

Guys- quit it.
How many advisory notes do I need to put up?

Barely Hedged

Eugene Norman wrote: »

So you charged the water and lpt to the extra income rather than total income? And renters pay the former. Tax has nothing to do with the definition of earned income.

No I added it to the excess income as these taxes didn't exist when said apartment was renting for probably 1.2k ie 2010, 2011.

Didn't you even read the point I made?

The_Morrigan

Folks I'm going to lock this up overnight so everyone can walk away from the keyboards - T_C has already told you to cut it out.