Renters should support property tax.

Rabble Rabble

Renters and people who hope to buy in the future.

It might bring some realism into the Daft.ie prices if - in the absence of transactions - your house was valued on it's asking price.

This guy

http://www.daft.ie/searchsale.daft?id=568257

may lower the price of his slum if property taxes are accessed on the price.
BTL landlords will sell up - the effect on rent will be minimal as there are so many properties - and prices will fall.

Anyway, it seems to be a condition of the IMF.

syklops

Surely it will put rents up as they try to cover the increased costs?

sarumite

Rabble Rabble wrote: »

Renters and people who hope to buy in the future.

It might bring some realism into the Daft.ie prices if - in the absence of transactions - your house was valued on it's asking price.

This guy

http://www.daft.ie/searchsale.daft?id=568257

may lower the price of his slum if property taxes are accessed on the price.
BTL landlords will sell up - the effect on rent will be minimal as there are so many properties - and prices will fall.

Anyway, it seems to be a condition of the IMF.

All that will happen is that the property tax is passed from the BTL landlord to the tenent....thus rent prices go up.

Rabble Rabble

sarumite wrote: »

All that will happen is that the property tax is passed from the BTL landlord to the tenent....thus rent prices go up.

Seriously you dont understand the market system. And that is a problem with all these threads. The market rent will not be affected by property tax increases. The rental rate depends on the availability of similar properties and that is all.

( During the boom the rental rate wasnt affected by property price increases - a clear sign it was a bubble).

sarumite

Rabble Rabble wrote: »

Seriously you dont understand the market system. And that is a problem with all these threads. The market rent will not be affected by property tax increases. The rental rate depends on the availability of similar properties and that is all.

( During the boom the rental rate wasnt affected by property price increases - a clear sign it was a bubble).

Seriously, starting with an insult isn't a way to make friends or influence people.

From my experience of Living in England.....when the local council announced hike in rates, this was usually followed by a rise in my rent. Now I know that correlation isn't always causation, but sometimes it is.

Dorcha

I might not understand the market system, but I understand human beings rather well. Increases in costs are always passed on to the customers.

Rabble Rabble

sarumite wrote: »

Seriously, starting with an insult isn't a way to make friends or influence people.

From my experience of Living in England.....when the local council announced hike in rates, this was usually followed by a rise in my rent. Now I know that correlation isn't always causation, but sometimes it is.

I attacked the argument by quoting it. So back to the original point.

If you are in a country with more houses to rent than renters then any increase in the cost of the housing to the owners - interest rate increases, property tax etc. - cannot be passed onto the tenants because they will be free to move on to an empty unrented property where the landlord is competitive on price. Sometimes within the same building, if it is an apartment block.

This is easier in Ireland where rentals are generally furnished.

For people who want to buy in the future the property tax will show the real cost of housing in Ireland - and the still inflated figures on Daft will tumble.

Rabble Rabble

Dorcha wrote: »

I might not under the market system, but I understand human beings rather well. Increases in costs are always passed on to the customers.

Except where they cant be.

Riskymove

stamp duty did not do much to lower house prices

Rabble Rabble

Riskymove wrote: »

stamp duty did not do much to lower house prices

Without stamp duty the prices would have been higher...

sarumite

Rabble Rabble wrote: »

I attacked the argument by quoting it. So back to the original point.

You comment was aimed at me personally, not my post.

If you are in a country with more houses to rent than renters then any increase in the cost of the housing to the owners - interest rate increases, property tax etc. - cannot be passed onto the tenants because they will be free to move on to an empty unrented property where the landlord is competitive on price. Sometimes within the same building, if it is an apartment block.

This is easier in Ireland where rentals are generally furnished.

For people who want to buy in the future the property tax will show the real cost of housing in Ireland - and the still inflated figures on Daft will tumble.

The ghost estates are not equally distributed.....and furthermore when you apply a property tax (or council rates) is across the board, then every renter in town will face the same increase.

Rabble Rabble

sarumite wrote: »

You comment was aimed at me personally, not my post.



The ghost estates are not equally distributed.....and furthermore when you apply a property tax (or council rates) is across the board, then every renter in town will face the same increase.

The quote was in general that people dont understand economics. You are repeating your claim "every renter in town will face the same increase" without proof, as if saying it proves it.

Rent is set by supply and demand. The owners cant pass it on because people can move on to unoccupied flats, houses or apartments.

sarumite

Rabble Rabble wrote: »

The quote was in general that people dont understand economics. You are repeating your claim "every renter in town will face the same increase" without proof, as if saying it proves it.

Rent is set by supply and demand. The owners cant pass it on because people can move on to unoccupied flats, houses or apartments.

No, by "renter" I mean the person renting out the house and not the rentee will have the same increase.....I don't need proof, the fact is that the cost is across the board. When you apply a increase across the board, then the status quo remains the same. The unoccupied flats, houses and apartments will also have this charge, therefore it has no effect on competition. I misunderstood your comment out the "general population". Now I that I understand it clearly I merely find it amusing.

ixoy

sarumite wrote: »

The unoccupied flats, houses and apartments will also have this charge, therefore it has no effect on competition. I misunderstood your comment out the "general population". Now I that I understand it clearly I merely find it amusing.

Yes but not all rental properties are owned by one person. A rentee can go to some other property where the rental fee+increase is less than where they are. Rather than risk losing them, there's grounds for the landlord to negotiate on any proposed increase.

sarumite

ixoy wrote: »

Yes but not all rental properties are owned by one person. A rentee can go to some other property where the rental fee+increase is less than where they are. Rather than risk losing them, there's grounds for the landlord to negotiate on any proposed increase.

If thats the case, then they can do that now anyway. The status quo hasn't moved. If the rental fee + increase is less, then essentially just the rental fee is less as the increase is the same for the new property as well as the old property in most cases.