How high will the rental rates go ?

handlemaster

Its hard to see rents going up much further. What will the breaking point be ? Dublin average 3 bed semis are minimum 1400 now.

andekwarhola

handlemaster wrote: »

Dublin average 3 bed semis are minimum 1400 now.

We wish.

Gumbo

3/4 bed beside me went for €1800 per month last month. And it was snapped up on the first evening of viewings. I believe it's unsustainable IMO and that's as a landlord.

Meakstown area of North Finglas.

handlemaster

kceire wrote: »

3/4 bed beside me went for €1800 per month last month. And it was snapped up on the first evening of viewings. I believe it's unsustainable IMO and that's as a landlord.

Meakstown area of North Finglas.

I Didnt think is was that high. Had a look on Daft seen some 3 beds at levels below that. I think alot of places dont even get advertised especially those managed by agents

Idbatterim

1 bed apartments in the development I used to live in dundrum, now asking E1600...

Gumbo

handlemaster wrote: »

I Didnt think is was that high. Had a look on Daft seen some 3 beds at levels below that. I think alot of places dont even get advertised especially those managed by agents

It was up on daft for a week and then rented out so ad is probably down now.
It was through <mod snip>

punisher5112

Dundrum 2k to 2.5k for 3 bed

handlemaster

Whats the cut off point that people will pay.. there has to be a limit for the average worker

punisher5112

handlemaster wrote: »

Whats the cut off point that people will pay.. there has to be a limit for the average worker

In every case its different. House shares aren't helping or the likes of hot bed houses where many people are in the one place so rent isn't that expensive split.

Gumbo

handlemaster wrote: »

Whats the cut off point that people will pay.. there has to be a limit for the average worker

Depends on location, salary, single status plus more
A single guy working in town may not mind paying 700 a month for a room share if he doesn't then require transport to work, pubs nights out etc

The case I outlined above, 3 hospital workers moved in. Close to M50, bus to O'Connell street every 15 mins and your in there in 25 mins even during rush hour, so 600 per month each is not bad, plus bill says of course.

Idbatterim

Depends on location, salary, single status plus more
A single guy working in town may not mind paying 700 a month for a room share if he doesn't then require transport to work, pubs nights out etc

yeah nail on the head, if you can ditch the expense of public transport and taxis, that can be a significant monthly saving...

handlemaster

What about for a family with two three kids. It must be difficult on an average salary

punisher5112

handlemaster wrote: »

What about for a family with two three kids. It must be difficult on an average salary

Its impossible to be honest. I've been pushed further and further out of Dublin.

Lumen

There is no breaking point. Average wages are irrelevant when there is more demand than supply, because the convenient locations go to those with most money.

Everyone else squeezes in or is squeezed out. Until it pops.

Lumen

Lumen wrote: »

There is no breaking point. Average wages are irrelevant when there is more demand than supply, because the convenient locations go to those with most money.

Everyone else squeezes in or is squeezed out. Until it pops.

Agree. The answer is "What you will pay"

I do hope one day common sense kicks in. I don't have any kids yet, but I look at my sisters renting, each with two kids and I'm dreading their next rent increase. One lives in Bray, one in Santry. Kids are settled in schools, no idea where they're going to end up as landlords would seemingly prefer to rent out a house share as it's the only way I can see 3 beds for 1800 a month working out.

The average wage maker makes about 3k a month iirc. I don't have the figures, but I imagine the mean wage is around 2k a month.

How could a family with 2 kids save for the future (or a mortgage for themselves) feed and clothe their kids and themselves as well as all the other expenses if nearly 50% of their income is spent on rent?

I just find the whole "markets dictate rates" depressing really.

We'll be talking about families house sharing soon as people won't have a choice.

Zamboni

Hey look at that fire!
How do we put it out?
Throw this can of petrol see if it works


http://www.irishtimes.com/news/politics/rent-subsidy-for-middle-income-families-is-under-consideration-1.2864895



wtf

beauf

I'm very surprised it hasnt triggered significant emigration. If I was starting again I'd be long gone.

appfry

More meddling from the government.
Government meddling in the rental market has never worked, ever. It has always had the opposite of the intended effect. <mod snip: this is not a politics forum>


Build more houses that are needed and leave the meddling with the market alone. But dont build too many either. See what happened last time.

beauf

beauf wrote: »

I'm very surprised it hasnt triggered significant emigration. If I was starting again I'd be long gone.

An awful lot of people don't want to leave Ireland though and would have no interest in living abroad. Also you don't have to live in Dublin, plenty of jobs around the county where rents while still high in the other cities are a lot better than Dublin. Buying is also far far more doable in basically every other part of the country.

appfry

beauf wrote: »

I'm very surprised it hasnt triggered significant emigration. If I was starting again I'd be long gone.

Most places in other countries where there are jobs have rents as high if not higher than Dublin too.
The concentration of jobs is what drive the desire to all live in the same small areas the world over.

So if you do emigrate, you have to look at

Where do I need to go to get work.
What will I be paid.
What percentage of that am I prepared to pay to live closer to my job, or even closer to the train station that gets me to my job.

Ray Palmer

Deleted User wrote: »

I do hope one day common sense kicks in.

There is a level of denial in that statement. There is nobody dictating rents and there really isn't a way to control it and increase supply without either less people or more houses.
Some people think the solution is to get the government to build housing and/or provide affordable housing. The problems with that have been shown. The worst areas in the country are social housing estates from the past. When they made affordable housing with mortgage schemes when property dropped many abandoned them or stopped paying. Some were because of job losses but there were some who just stopped paying because they were in negative equity.

There is no easy solution

The idea that rent has to drop because a family can't afford it is flawed. There are other people who can. Look at any major city in a country and you will see rents can just keep rising and they get smaller.

Another touted solution is rent control. The 2 year freeze was a form of rent control. It actually forced rent up and drives rent up again as landlords have to put rent up again the next chance they get for fear what will come next.

Rent controls have a number of effects. They stop investment into property as there is no benefit to improving the property to get more rent. We also don't have homogenised properties to come up with a rate.

Rents will keep going up and will fluctuate. When they dropped many tenants broke leases with no consequences. That was when property was in negative equity leaving many landlords with a mounting debt. The ones that survived now have to try and recover those losses. People like to talk about landlord greed but many have huge debts where rental income has not covered expenses.

beauf

appfry wrote: »

beauf wrote: »

I'm very surprised it hasnt triggered significant emigration. If I was starting again I'd be long gone.

Most places in other countries where there are jobs have rents as high if not higher than Dublin too.
The concentration of jobs is what drive the desire to all live in the same small areas the world over.

So if you do emigrate, you have to look at

Where do I need to go to get work.
What will I be paid.
What percentage of that am I prepared to pay to live closer to my job, or even closer to the train station that gets me to my job.

In other countries it's a bigger market so more options outside the capital cities.

beauf

Stella Clever Strapless wrote: »

beauf wrote: »

I'm very surprised it hasnt triggered significant emigration. If I was starting again I'd be long gone.

An awful lot of people don't want to leave Ireland though and would have no interest in living abroad. Also you don't have to live in Dublin, plenty of jobs around the county where rents while still high in the other cities are a lot better than Dublin. Buying is also far far more doable in basically every other part of the country.

That is also an option. It's about getting a life work balance.

JohnRock

The rent increase has been mental & depressing at the same time. My rent has increased 50% over the last 4 years. I've no idea how inflation rates are so low

Smoked Tuna

beauf wrote: »

I'm very surprised it hasnt triggered significant emigration. If I was starting again I'd be long gone.

Its not all roses elsewhere either.

Read the Australian forum, you will find people complaining there too.

http://forums.whirlpool.net.au/forum-replies.cfm?t=2574694

However there are other reasons to emigrate too like better job opportunites, perhaps work life balance, not to mention... sun and sand :cool:

KwackerJack

Average 3 bed semi is approx 1600

It will go up and up until nobody can afford it, everyone bar the wealthy will move home with parents or sharing will become the norm, then the landlords will cry save us, the government will step in and public money will be used to help the landlords who put themselves into this position!!

And the banks, well they will just sit back and laugh as they will never lose!

Just like the housing buble we won't listen or learn and it will happen all again.

Me, well im waiting for the next bang to buy and I'll be happy with my little mortgage 😊

Smoked Tuna

KwackerJack wrote: »

Me, well im waiting for the next bang to buy and I'll be happy with my little mortgage 😊

You could be waiting a while for that? But no suprise if it happens eventually.

KwackerJack

Smoked Tuna wrote: »

You could be waiting a while for that? But no suprise if it happens eventually.

We never seen the last one coming, even with the massive signs!

I'll bs saving my backside off to buy land and build.....ill be renting as little as possible

Johngoose

If U.S. multi-national companies leave rents in Ireland will fall otherwise they will keep rising.

appfry

beauf wrote: »

In other countries it's a bigger market so more options outside the capital cities.

Its not just capital cities that have high rents.
Any city where you have conditions which attract people to them over and above the surrounding area will have high rents.

Its all about how many people are competing against each other.