Rent Freeze - the mechanics of

Dav010

Spencer Winterbotham wrote: »

. I cancelled all Mortgage Direct Debits.. So I will not be paying any mortgages for the foreseeable... with or without the bank's consent.
t.

If you own a portfolio of properties, that is an astonishing way to act. Defaulting on loan payments without discussing with your lender will effect your Credit Rating. Hopefully this will be a relatively short crisis, but adopting such an approach is hugely risky for your long term viability as a property owner. This rent freeze only applies to those who can show that they have lost their jobs, a knee jerk blanket rent freeze on your own part is great for your tenants, but bad in the short and long term for you.

dharma200

Dav010 wrote: »

I would have thought Airbnb will be more popular if rents fall. I have an Airbnb house, I’m genuinely thanking my lucky stars it isn’t rented.

Air travel will not be extortionate, if anything it will be great value when it returns as the airlines try to get up and running again.

Listening to Newstalk, rent freeze apply only to those who can show their job has been effected, I would presume you have to show you are in receipt on new pandemic payment, it does not apply to everyone.

Out of interest, where are you seeing rents on daft plummeting, I just googled that and got no results.

There are rents for air b n b apartment dropping by 550 per month. Air b n b will not even be a thing. It is over.

There wont be any airlines for competition, cheap fares are over.

How on earth do you think air b n b will be more popular if rents fall? The reason rents will fall is because there will be no one NO ONE in air b n bs.
The migrant labour, wont be needed because there will be no employment.
There is a thread - apartments in dublin are already dropping by over 500 - these apartments that are air b n bs. No one is coming to stay in the air b n b for a long long time. They will all be on the rental market. The apartment blocking that air b n b has caused is over.

Cheap flights heading up the nile.

Lordy.

kirving

shreko wrote: »

Nope unfortunately not for everyone, depends on your interest rate and where you are in the term of your mortgage. The rent I receive every month is €1200. My mortgage is €1140.
The interest I pay out of the €1140 is approximately €800. So during my "Payment Holiday" for each month I lodge nothing to my mortgage account the €800 interest gets added to the over all debt amount. So If owe €200,000 today in three months time when my "Payment holiday" is over I will now owe €202,400

So I am basically taking on the majority of my tenants housing costs for three months.

This doesnt even consider the monthly direct debit I also have for House Insurance, property tax and Boiler servicing on the property which amounts to another €100 or so a month.

Anything I've read so far is scant on detail surrounding interest being paused too, it may very well be. I really hope it wold be the. If not, it would be an unfair burden on many people.

Has this been confirmed yet?

If the market rent fell through the floor in the morning, and your mortgage stayed the same, would you still consider yourself to be taking on your tenants housing cost? I don't think it's correct to conflate market rent with mortgage rates.

While it's great to have the mortgage covered, rent not meeting that amount, for whatever reason, is a clear risk landlords take on. The reward being further down the line, when the mortgage is paid and you have an asset which also earns money.

dharma200

Dav010 wrote: »

I would have thought Airbnb will be more popular if rents fall. I have an Airbnb house, I’m genuinely thanking my lucky stars it isn’t rented.

Air travel will not be extortionate, if anything it will be great value when it returns as the airlines try to get up and running again.

Listening to Newstalk, rent freeze apply only to those who can show their job has been effected, I would presume you have to show you are in receipt on new pandemic payment, it does not apply to everyone.

Out of interest, where are you seeing rents on daft plummeting, I just googled that and got no results.

rents dropping like flies....https://www.daft.ie/dublin/apartments-for-rent/grand-canal-dock/32-millennium-tower-charlotte-quay-grand-canal-dock-dublin-2014730/

https://www.boards.ie/vbulletin/showthread.php?t=2058057803

Dav010

dharma200 wrote: »

There are rents for air b n b apartment dropping by 550 per month. Air b n b will not even be a thing. It is over.

There wont be any airlines for competition, cheap fares are over.

How on earth do you think air b n b will be more popular if rents fall? The reason rents will fall is because there will be no one NO ONE in air b n bs.
The migrant labour, wont be needed because there will be no employment.
There is a thread - apartments in dublin are already dropping by over 500 - these apartments that are air b n bs. No one is coming to stay in the air b n b for a long long time. They will all be on the rental market. The apartment blocking that air b n b has caused is over.

Cheap flights heading up the nile.

Lordy.

Do you know how Airbnb works? A lot of hosts set the pricing to automatic. It’s a pricing algorithm that alters the price charged based on demand. Of course Airbnb prices have dropped online, there is no demand. But when this is over, demand will increase and the price goes up. It is wrong to assume owners are suddenly online giving their properties away, the site price setter automatically does that. Just to give you an example, I rent my house out for €300 per night, the price has dropped by more than €550 per month if all nights were rented, but it would still be more than I would get if I rented it to a tenant.

Catch yourself on, there will be airlines and there will be competition.

Dav010

dharma200 wrote: »

rents dropping like flies....https://www.daft.ie/dublin/apartments-for-rent/grand-canal-dock/32-millennium-tower-charlotte-quay-grand-canal-dock-dublin-2014730/

https://www.boards.ie/vbulletin/showthread.php?t=2058057803

What are you pointing to here? A one bed for €1100 that seems by the low number of views to have been put up on daft today,.

dharma200

Dav010 wrote: »

Do you know how Airbnb works? A lot of hosts set the pricing to automatic. It’s a pricing algorithm that alters the price charged based on demand. Of course Airbnb prices have dropped online, there is no demand. But when this is over, demand will increase and the price goes up. It is wrong to assume owners are suddenly online giving their properties away, the site price setter automatically does that. Just to give you an example, I rent my house out for €300 per night, the price has dropped by more than €550 per month if all nights were rented, but it would still be more than I would get if I rented it to a tenant.

Catch yourself on, there will be airlines and there will be competition.

I am talking about the air b n b apartments now going onto the rental market. Dozens already.
Daft now has a number or air b n b going onto rental, you can tell because they were on air b n b a whiel back. Folded towels on the bed, sur eyou know how it works. myhome.ie the same.
anyway, ofcourse i know how air b n b works and I know how it isnt going to work. But best of luck with it. We are all gonna need it. Aer lingus now putting all on half pay, soon to be no pay, soon to be gone. I am not talking about air b n b prices because there wotn b any, the air b n are now going onto the normal rental market, and will swamp it. anyway I can see you ar enot getting it.

dharma200

Dav010 wrote: »

What are you pointing to here? A one bed for €1100 that seems by the low number of views to have been put up on daft today,.

That is a former air b n b, dropping its rent by 550, on the rental market for well less than it ever would have been, because NO ONE IS GOING TO BE IN AIR B N Bs......... rents are dropping already.. for past two weeks and now dropping pretty drastically. House prices to buy, dropping by ALOT, in a couple of days.

They are quick off the mark, plenty to follow.

Dav010

dharma200 wrote: »

That is a former air b n b, dropping its rent by 550, on the rental market for well less than it ever would have been, because NO ONE IS GOING TO BE IN AIR B N Bs......... rents are dropping already.. for past two weeks and now dropping pretty drastically. House prices to buy, dropping by ALOT, in a couple of days.

They are quick off the mark, plenty to follow.

How do you know that it was an Airbnb? The towels?

Incidentally, Ryanair, EasyJet, Norwegian Air and Lufthansa shares all went up today, Lufthansa by over 8%.

You might be right about owners of Airbnb going into rental market, but as it has been illegal for some time for many to operate, maybe this is the push needed to change over. I won’t be following.

dharma200

Dav010 wrote: »

How do you know that it was an Airbnb? The towels?

Incidentally, Ryanair, EasyJet, Norwegian Air and Lufthansa shares all went up today, Lufthansa by over 8%.

You might be right about owners of Airbnb going into rental market, but as it has been illegal for some time for many to operate, maybe this is the push needed to change over. I won’t be following.

Carsten Spohr, Chairman of the Executive Board, said, "The spread of the coronavirus has placed the entire global economy and our company as well in an unprecedented state of emergency. At present, no one can foresee the consequences....The longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid."

To meet the Covid-19 crisis, the company plans comprehensive savings measures including capacity reductions, short-time working mechanism in home markets and suspension of dividend. Lufthansa also announced drastic cutbacks in its flight operations due to entry restrictions in many countries and a collapse in demand. Around 700 of the Lufthansa Group's 763 aircraft will be temporarily parked.

The Lufthansa Executive Board has further decided to waive 20 percent of its basic remuneration in 2020." https://www.nasdaq.com/articles/lufthansa-fy19-profit-down-says-cant-predict-fy20-earnings-stock-up-2020-03-19They are parking 700 out of 763 aircraft.
A tiny few airlines will be saved by their respective states. and you can be sure they will be passing it on to the next round of holiday makers, in 2021.
Cheap flights and air b n b are finished. Thats my opinion and I sure hope I am wrong. ( well maybe not so wrong with air b n b. was nice while it lasted, but a scourge on ireland)

Del Griffith

dharma200 wrote: »

Carsten Spohr, Chairman of the Executive Board, said, "The spread of the coronavirus has placed the entire global economy and our company as well in an unprecedented state of emergency. At present, no one can foresee the consequences....."

She should have called you!

PommieBast

Isn't AirBnB supposed to be illegal? That might be grounds for the landlords concerned to be refused assistance...

(well, against planning permission, but DCC isn't granting anyone that..)

GreeBo

shivermetimber wrote: »

One idea would be to consider rewinding the clock so to speak - a mandatory reduction of all rents back to 2014(?) rates across the board. Any new tenancies commenced since then will also be reduced to the 'going market rate' for the size and area at that time according to the index. This would apply to both private and commercial landlords.

It would remove the max 4% rpz year on year increases, which I imagine nearly every landlord has done to the max of 4% every time and remove the more then 4% increases done outside rpz's. It would reduce rents across the entire country in one swoop, which lets face it has gone beyond ridiculous at this stage and supply isn't going to fix this crisis any time soon.

Of course it won't suit some e.g. very recent landlords who might have stretched themselves mortgage wise if their rental income were suddenly cut but I imagine it will be a more acceptable measure to a lot of longer term landlords given the situation everyone now finds themselves in.

Just a quick though and the above could of course be supplemented with various other measures.

Nice idea.
I'm sure you are also contacting your employer to tell them to cut your wages back to 2014 levels also?

GreeBo

dharma200 wrote: »

There are rents for air b n b apartment dropping by 550 per month. Air b n b will not even be a thing. It is over.

There wont be any airlines for competition, cheap fares are over.

I dont see this at all to be honest.
Sure, while everywhere is on lockdown, but as soon as thats over everyone will be back looking to travel and their will be demand for cheap flights, why wouldnt there be?

dharma200

GreeBo wrote: »

I dont see this at all to be honest.
Sure, while everywhere is on lockdown, but as soon as thats over everyone will be back looking to travel and their will be demand for cheap flights, why wouldnt there be?

There will be a demand alright. There wont be airlines. What ones survive will be so knee deep in state debt you can be sure they wont be charging you 30 euro to bask in the costa.

dharma200

PommieBast wrote: »

Isn't AirBnB supposed to be illegal? That might be grounds for the landlords concerned to be refused assistance...

(well, against planning permission, but DCC isn't granting anyone that..)

Yes. And soon hopefully completely out of business. The airbn b map right now in dublin is such a scandal, and the hundreds of properties added to the rental market in the past few days. It is disgusting to see.
One multinational and w hole lots of people happy to profit massively are now down the swanney and no harm. One of the few postives.

Dav010

dharma200 wrote: »

Yes. And soon hopefully completely out of business. The airbn b map right now in dublin is such a scandal, and the hundreds of properties added to the rental market in the past few days. It is disgusting to see.
One multinational and w hole lots of people happy to profit massively are now down the swanney and no harm. One of the few postives.

Is that you Paul?

c0rk3r

Guess i don't have to pay the increased rate of rent which commences Mid-April ? A minor win.

piplip87

I get the feeling that this would work out ok if it wasn't for the piss takers.

I have seen and heard people who are now work from home demanding a rent freeze or a three month break even though Thier financial situation will be better off during this. The same thing happened during the recession people just have up paying mortgages because some people got into difficulty.

By announcing no evictions during this crisis they have just given the opportunity to those who will take the piss to do just that. The genuine ones who lost jobs and are now in trouble will be the ones to scrape something together for Thier landlords.

PommieBast

dharma200 wrote: »

Yes. And soon hopefully completely out of business. The airbn b map right now in dublin is such a scandal, and the hundreds of properties added to the rental market in the past few days.

I do wonder about the people who are supposed to be enforcing this.

LeineGlas

piplip87 wrote: »

I get the feeling that this would work out ok if it wasn't for the piss takers.

I have seen and heard people who are now work from home demanding a rent freeze or a three month break even though Thier financial situation will be better off during this. The same thing happened during the recession people just have up paying mortgages because some people got into difficulty.

By announcing no evictions during this crisis they have just given the opportunity to those who will take the piss to do just that. The genuine ones who lost jobs and are now in trouble will be the ones to scrape something together for Thier landlords.

You're very out of touch if you think the crisis only started in the last few weeks.

Just because people haven't lost their jobs doesn't mean they are struggling to pay extortionate rents.

The rhetoric of landlords over the past few months shows why they have the reputation they have.

GreeBo

dharma200 wrote: »

There will be a demand alright. There wont be airlines. What ones survive will be so knee deep in state debt you can be sure they wont be charging you 30 euro to bask in the costa.

And why wont there be new airlines if there is demand?

where do you think all the low cost airlines came from originally?

Roberto_gas

I have been informed of a rent increase from next month...will this stop that increase ?

sbsquarepants

dharma200 wrote: »

No,
Because air b n b will be pretty much finished, air travel will be extortionate, people all over europe too skint to spend a week in dublin or galway, no more big cultural events, mass unemployment and no more false rental economy.

Have a big long think.

People really are getting hysterical.

Here's what you need to be thinking, temporary things are temporary. Pandemics do not last forever, there have been a quite a few of them already, there has even been much worse ones than this. They end and life returns to normal. This will be no different.

Everything tends toward the average over time - extremes do not become the new norm.

Roberto_gas

c0rk3r wrote: »

Guess i don't have to pay the increased rate of rent which commences Mid-April ? A minor win.

Ditto for me !

handlemaster

c0rk3r wrote: »

Guess i don't have to pay the increased rate of rent which commences Mid-April ? A minor win.

Why would you not ?

handlemaster

piplip87 wrote: »

I get the feeling that this would work out ok if it wasn't for the piss takers.

I have seen and heard people who are now work from home demanding a rent freeze or a three month break even though Thier financial situation will be better off during this. The same thing happened during the recession people just have up paying mortgages because some people got into difficulty.

By announcing no evictions during this crisis they have just given the opportunity to those who will take the piss to do just that. The genuine ones who lost jobs and are now in trouble will be the ones to scrape something together for Thier landlords.

And you can tag the social welfare work avoiding tenants onto that. No impact on their circumstances

c0rk3r

handlemaster wrote: »

Why would you not ?

Not being funny or anything but because its the law (or will be). Look, the landlord uses the same legislative mechanism to increase the rent every year. Now whens its the tenants opportunity to use a similar mechanism... they should. I imagine, during these difficult times ahead that the landlord is thankful that she has tenants that can actually pay because alot cant.

dharma200

Nice opportunity for a few air b n b home blockers to help the less fortunate.

https://twitter.com/IrishRefugeeCo/status/1240968214995181568

handlemaster

c0rk3r wrote: »

Not being funny or anything but because its the law (or will be). Look, the landlord uses the same legislative mechanism to increase the rent every year. Now whens its the tenants opportunity to use a similar mechanism... they should. I imagine, during these difficult times ahead that the landlord is thankful that she has tenants that can actually pay because alot cant.

Does it say that ?