Rent to be linked to inflation

Greyian

Victor wrote: »

Average rents won't necessarily be representative of all rents. There are still many parts of the former East Germany that have very high unemployment, low incomes and low rents.

I'm aware of that, but average rents in Dublin also won't be representative of all rents. According to the latest Daft report, the average rental price in Dublin + Commuter Counties is now €1,571. And let's be honest, it's hardly like all of Dublin is a utopia. This average would include places like Darndale, Ballymun, Summerhill etc.

If you search for properties in Co. Dublin on Daft, a total of 1782 are returned. 523 of these are houses. There are 523 houses, so just under 30% of the stock is made up of houses, with the rest being primarily apartments (with some studios). It would probably be generous to suggest the average size of properties to rent would be 100 sqm, which would put us at almost €16/sqm per month, or 78% higher than Berlin. Even if we compare Dublin to Munich (which I think is a poor comparison, because Munich is the economic powerhouse of Bavaria, which is considered by many to be the economic powerhouse of Germany, which is in turn the economic powerhouse of Europe), Numbeo.com still has us coming out at between 13% and 38% more expensive for rentals.

awec

MarkAnthony wrote: »

People will jus have to do what they do in England, live outside the capital an commute in. It's more than possible with the current transit links, granted upgrades are needed.

The government know they can only push so far. Rent controls are unconstitutional and have been shown as such in the past. Private property is private property, the state needs to deal with the issue by providing social housing not penalising landlords.

At the end of the day around 40% of every euro paid in rent goes straight back to the exchequer. If you want to reduce rents deal with that issue, that's the only way I can ever see proper rent controls being introduced.

People say this as if it's some magical solution to the problem.

You know that rents in the commuter belt are going up too, right? And that people moving there will cause them to go up even more?

I agree there are problems and I am not sure that rent control like this is the solution, but this "just move further out" crap fries my head, as if renters are too stupid to investigate that option for themselves. For what it's worth, we looked at it but it would end up costing us more in the end. We either pay really high rent or we pay slightly lower rent but pay a lot more to commute. It isn't just a blanket solution for everyone.

gaius c

handlemaster wrote: »

http://m.independent.ie/business/personal-finance/property-mortgages/cost-of-renting-will-be-linked-to-inflation-31268699.html

Rent increases are set to be linked to inflation. There will be alot of rent hikes I think before this cimes in. In particular by those landlords who are offfering accomadation below market rate.

Sounds like a sneaky way to lock high rents in forever.

Idbatterim

I agree there are problems and I am not sure that rent control like this is the solution, but this "just move further out" crap fries my head, as if renters are too stupid to investigate that option for themselves. For what it's worth, we looked at it but it would end up costing us more in the end. We either pay really high rent or we pay slightly lower rent but pay a lot more to commute. It isn't just a blanket solution for everyone.

I agree, I will cut other stuff to the bone personally before I compromise on location. It may be a more viable option if we had an acceptable transport infrastructure, but we don't. After having money to burn during the tiger, its a disgrace...

you know we are back to square one, people want to live in the city, why in gods name is scarce land in the docklands being wasted on appalling low density crap that would be more at home in a british town of 50-100,000?!

handlemaster

http://www.independent.ie/opinion/comment/only-bombs-destroy-a-city-more-quickly-than-rent-controls-31277247.html

looks like their moving fast on this !

wonski

Current prices are ridiculous in Co.Kildare and Dublin.

You can't even get a decent 1 bed apartment for 800 euros. And I am not talking about Naas, but places like Monasterevin etc.

I was thinking of moving further out of Naas / Newbridge / Kilcullen area to find something decent and affordable, but i give up at this stage.

Many landlors in the area completely changed their approach and now they only rent out rooms in houses. Much easier given current prices. And it would explain lack of places to rent (except the "to share" ads).

Most single people I know are giving up, too. Living on your own is a luxury now, even for people earning 35k a year.

The_Conductor

wonski wrote: »

Current prices are ridiculous in Co.Kildare and Dublin.

The current prices- are a simple reflection of the lack of supply (and indeed the simple fact that significant numbers of landlords are getting out- for numerous reasons- including the manner in which landlords are being taxed).

wonski wrote: »

You can't even get a decent 1 bed apartment for 800 euros. And I am not talking about Naas, but places like Monasterevin etc.

Look at the cost of property (i.e. to buy it) in these areas. A rent of 800 Euro doesn't supply even a 6-7% return on investment for an investor. Rents may be high- but property prices are higher still. Something has to give.

wonski wrote: »

I was thinking of moving further out of Naas / Newbridge / Kilcullen area to find something decent and affordable, but i give up at this stage.

very little rental accommodation the further out you go- among other reasons- councils were loathe to give planning permission other than for one off owner occupied units, the further out you go. Once again- its lack of supply.

wonski wrote: »

Many landlors in the area completely changed their approach and now they only rent out rooms in houses. Much easier given current prices. And it would explain lack of places to rent (except the "to share" ads).

Most single people I know are giving up, too. Living on your own is a luxury now, even for people earning 35k a year.

Living on your own- always was a luxury. Most of us when we bought- had to rent out bedrooms to pay the bills- its part of life. Being able to live on your own- is a luxury- even for owners.

wonski

The_Conductor wrote: »

The current prices- are a simple reflection of the lack of supply (and indeed the simple fact that significant numbers of landlords are getting out- for numerous reasons- including the manner in which landlords are being taxed).



Look at the cost of property (i.e. to buy it) in these areas. A rent of 800 Euro doesn't supply even a 6-7% return on investment for an investor. Rents may be high- but property prices are higher still. Something has to give.



very little rental accommodation the further out you go- among other reasons- councils were loathe to give planning permission other than for one off owner occupied units, the further out you go. Once again- its lack of supply.



Living on your own- always was a luxury. Most of us when we bought- had to rent out bedrooms to pay the bills- its part of life. Being able to live on your own- is a luxury- even for owners.

I was spoilt by prices offered to me back in 2011.

I read newspapers, but didn't expect it to be back at this level so soon.

I am just surprised at prices in areas that used to be both good and affordable.

I agree regarding living on your own. 1 luxury item I will have to give up this year, I guess. Time to save up for a deposit and hope to buy in 2025 maybe.

Renting was a good option in last few years, but more and more people will try to buy sooner to protect themselves from these price jumps I think.
I doesn't make sense to pay €1000+ to rent a house tbh.
And the quality isn't great either.

Ironically places in less popular / not popular locations at all appear to be in much better condition that the ones offered in Dublin / Kildare.
Some places I have seen so far should be reported or burnt down really.

Rant over.

handlemaster

http://m.independent.ie/irish-news/the-rent-report/housing-crisis-forces-10000-a-month-to-rent-31302323.html

Indo claims 10000 new renters per month

quadrifoglio verde

Idbatterim wrote: »

who exactly goes into this social housing, does it benefit only the employed, or those below certain incomes, open to everyone etc?

I'm far from a socialist but the only way that social housing will work is if you've social welfare tenants and low paid living beside doctors pharmacists, teachers solicitors, gardai and ceos all paying 10% of their income for housing.
Of course people are still free to pay much more for private housing. But bundling a load of low paid employees and the unemployed into an area together will just create a ghetto.
Try tell that to the socialists though.

gaius c

handlemaster wrote: »

http://m.independent.ie/irish-news/the-rent-report/housing-crisis-forces-10000-a-month-to-rent-31302323.html

Indo claims 10000 new renters per month

Number have approximately doubled from ten years ago and the numbers are getting large enough that political parties are going to have to start paying attention to them.

gaius c

The_Conductor wrote: »

Look at the cost of property (i.e. to buy it) in these areas. A rent of 800 Euro doesn't supply even a 6-7% return on investment for an investor. Rents may be high- but property prices are higher still. Something has to give

Yep, it's a stark fact that even with bonkers rents, yields are still middling. A lot of the landlords who got into the water in the last year or two are in for a scalding.

stevedublin

quadrifoglio verde wrote: »

I'm far from a socialist but the only way that social housing will work is if you've social welfare tenants and low paid living beside doctors pharmacists, teachers solicitors, gardai and ceos all paying 10% of their income for housing.
Of course people are still free to pay much more for private housing. But bundling a load of low paid employees and the unemployed into an area together will just create a ghetto.
Try tell that to the socialists though.

I'm fairly sure most socialists want to mix social welfare tenants with low, mid and highly paid.

quadrifoglio verde

stevedublin wrote: »

I'm fairly sure most socialists want to mix social welfare tenants with low, mid and highly paid.

But have the high paid pay a disproportionate price of their income so there is no incentive for them.
If social housing was open to all, at a monthly rent of 10% of your income you'd have a hell of a lot more rushing to live in social housing other than the low paid and unemployed building an actual community and not more ghettos.

Eric Cartman

quadrifoglio verde wrote: »

I'm far from a socialist but the only way that social housing will work is if you've social welfare tenants and low paid living beside doctors pharmacists, teachers solicitors, gardai and ceos all paying 10% of their income for housing.
Of course people are still free to pay much more for private housing. But bundling a load of low paid employees and the unemployed into an area together will just create a ghetto.
Try tell that to the socialists though.

the fact is that somebody employed in a mid to high level position would never wilfully live next to somebody unemployed, the lifestyle is just too different. and I'm not talking about the temporarily unemployed. The very idea that I could live in a house and get up at 8am and get home at 11 at night yet have a house that was similar somebody who didn't get the idea of hard work and did nothing all day would make me physically sick. I agree putting them all somewhere together kind of creates a ghetto, but putting them in with people who worked hard for what they have is just down right unfair.

MarkAnthony

Eric Cartman wrote: »

the fact is that somebody employed in a mid to high level position would never wilfully live next to somebody unemployed, the lifestyle is just too different. and I'm not talking about the temporarily unemployed. The very idea that I could live in a house and get up at 8am and get home at 11 at night yet have a house that was similar somebody who didn't get the idea of hard work and did nothing all day would make me physically sick. I agree putting them all somewhere together kind of creates a ghetto, but putting them in with people who worked hard for what they have is just down right unfair.

The problem with that attitude (although I grant you it's much more nuanced) is when you group people together, especially an underclass, you end up cultivating certain attitudes.

Also if you're consistently working 8-11 you could probably do with taking notes from someone who takes it a bit easier!

Hollister11

galljga1 wrote: »

Quote from article:
"The news will come as a huge relief to tens of thousands of struggling households who are now facing rent bills not seen since the peak of the boom."

Relief, my ar$e. Every landlord in the country will hike up rent as much as possible before these measures come into effect. Boom levels will seem generous in comparison.

But are landlords not entitled to get the maximum return from their property ? in 2009 my parents struggled to rent out their house for 900 a month. Now they could get up to 1400 but a charge less.

The_Conductor

Hollister11 wrote: »

But are landlords not entitled to get the maximum return from their property ? in 2009 my parents struggled to rent out their house for 900 a month. Now they could get up to 1400 but a charge less.

Its pure political pandering- nothing more, nothing less.
Being a landlord- should be like operating any other business (and indeed- it should be treated by landlords and tenants as a business- its when it strays off this path than a lot of the issues arise). Unfortunately- landlords are the whipping boys du jour- along with bank employees, civil servants, the public sector, Irish water- and whatever else can be used to detract attention away from those who are supposed to be governing.........

handlemaster

http://www.irishtimes.com/business/economy/rental-crisis-deepens-as-prices-up-6-5-per-cent-in-first-quarter-1.2254227

rents just keep on rising..

tunney

handlemaster wrote: »

http://www.irishtimes.com/business/economy/rental-crisis-deepens-as-prices-up-6-5-per-cent-in-first-quarter-1.2254227

rents just keep on rising..

And they will continue to rise.

robp

quadrifoglio verde wrote: »

But have the high paid pay a disproportionate price of their income so there is no incentive for them.
If social housing was open to all, at a monthly rent of 10% of your income you'd have a hell of a lot more rushing to live in social housing other than the low paid and unemployed building an actual community and not more ghettos.

Well its an interesting idea but one might have the counter argument that it is a subsidy for the wealthy?