Will rent fall because of budget 2011

OmegaRed

Interested to know what ppl think. Probably moving come the end of January.

athtrasna

Why would rent fall? Landlords, like everyone else will have less money in their pockets and there was nothing in the budget to help people in negative equity. It also sounds like some of the tax reliefs for landlords will be abolished so they will be worse off again.

gurramok

athtrasna wrote: »

Why would rent fall? Landlords, like everyone else will have less money in their pockets and there was nothing in the budget to help people in negative equity. It also sounds like some of the tax reliefs for landlords will be abolished so they will be worse off again.

So are tenants as well with tax increases. Less money around for everyone has to affect rents.

JoeyJJ

Has the rent relief for social welfare people been reduced? If not I'd suggest it would make little difference.

gurramok

JoeyJJ wrote: »

Has the rent relief for social welfare people been reduced? If not I'd suggest it would make little difference.

Nope :mad: Recipients now have to contribute 2 euro a week more towards rent. Yes you read that right.

JoeyJJ

Artificial floor on rents so, some rents may drop but not alot.

athtrasna

gurramok wrote: »

So are tenants as well with tax increases. Less money around for everyone has to affect rents.

Not unless mortgage rates drop...bearing in mind most banks have stopped doing interest only on NPPR properties..we have a property we couldn't sell and it's currently rented and the interest only ended in the summer so we're paying double what we were when we first rented it out. With these tax cuts there is no way we could afford to reduce the rent, we're struggling to keep up the payments as it is.

gurramok

athtrasna wrote: »

Not unless mortgage rates drop...bearing in mind most banks have stopped doing interest only on NPPR properties..we have a property we couldn't sell and it's currently rented and the interest only ended in the summer so we're paying double what we were when we first rented it out. With these tax cuts there is no way we could afford to reduce the rent, we're struggling to keep up the payments as it is.

Problem with your analysis is that other landlords do not have sizeable mortgages and its these ones that will rent out properties quickly based on price at the expense of you. The only factor that affects tenants on rentable property is price, every cent counts.

Each landlord is in a different totally position mostly based on when they bought the property and its reasonable to assume those that bought in 2005/06 are really feeling the pinch unlike their counterparts who bought in 2001 for example.

Monty Burnz

Everyone has less money. People are leaving the country in droves. The immigrants who came here are leaving. There are 300,000 empty properties. The IMF are in charge of the purse strings. Unemployment is at around 500,000. We are facing cuts and cuts and cuts for 4 years.

What way do you think rents are going? :rolleyes:

howamidifferent

athtrasna wrote: »

Not unless mortgage rates drop...bearing in mind most banks have stopped doing interest only on NPPR properties..we have a property we couldn't sell and it's currently rented and the interest only ended in the summer so we're paying double what we were when we first rented it out. With these tax cuts there is no way we could afford to reduce the rent, we're struggling to keep up the payments as it is.

Any prospective tenants will have no interest in how you can or cant meet your mortgage payments so your point is null and void as far as setting rent goes.
It's your problem not your tenants. If you dont drop the rent others will and you will have no tenant and no rent. Thats the way it will be.

mikemac

athtrasna, other landlords will probably be able to undercut you.

My landlord bought this place over 18 years ago and I know my rent is more then the mortgage. Which reminds me, I have some haggling to do

So while you mightn't be able to drop, many can.
And If were your tenant, I'd happily move to the house next door if it meant cheaper rent and more money in my pocket

Idbatterim

emigration, and people moving home or sharing (whether voluntarily or forced) should see rents falling.

am i bovvered

The only factor that affects tenants on rentable property is price, every cent counts.

Not true, for most tenants, heating system, location and finish are all vital factors as well as price.

gurramok

am i bovvered wrote: »

Not true, for most tenants, heating system, location and finish are all vital factors as well as price.

Read again. "rentable property" aka liveable.

silja

I don't think the budget will have a major impact on rents going up or down, but I do think that rents will continue to go down for another few months at least, if not a year or so- simply due to the economy. They won;t be falling as fast as they have in the last couple of years though.

dynamick

Take home pay is down about 3%, reducing demand for rental property so rents will drop. Rent supplement is continually reduced and each fall precedes another fall in rents. Net emigration will increase supply and thus push rents down. NAMA will start disposing of apartments and completing unfinished developments which will increase supply of housing and cut rents. Removal of rent relief reduces the amount that people have to spend on rent, reducing demand and thus rental levels.

None of this is massive: maybe 10% fall this year.

A good thing unless you are a landlord.

Cookie_Monster

gurramok wrote: »

The only factor that affects tenants on rentable property is price, every cent counts.

location, size, number of parking spaces etc etc

crabfeet

There will be many landlords selling property as a result of the budget. The ending of S23 will force a lot of them out. There will be very few new lanlords coming into the business. Prices will be forced down as FTbs will have to pay stamp duty.

gurramok

Cookie_Monster wrote: »

location, size, number of parking spaces etc etc

You as well?:rolleyes:

Read again. "rentable property" aka liveable.

Cookie_Monster

gurramok wrote: »

You as well?:rolleyes:

Read again. "rentable property" aka liveable.

it may be perfectly liveable in but if its in Corks its hardly going to do me any good in Dublin is it :rolleyes:

snubbleste

JoeyJJ wrote: »

Has the rent relief for social welfare people been reduced? If not I'd suggest it would make little difference.

Rent supplement tenants now have to contribute an extra €2 per week towards their rent. Rent supplement levels are more than likely going to fall in the next few months. Something along the lines of 'A restructuring of how housing is provided' was said.

Rents will fall.

gurramok

Cookie_Monster wrote: »

it may be perfectly liveable in but if its in Corks its hardly going to do me any good in Dublin is it :rolleyes:

Liveable is 'meeting needs' where those needs are 'in decent nick' , location, heating, space etc. Then price comes into the equation. Think this was picked up wrong by both of ye

fliball123

dynamick wrote: »

Take home pay is down about 3%, reducing demand for rental property so rents will drop. Rent supplement is continually reduced and each fall precedes another fall in rents. Net emigration will increase supply and thus push rents down. NAMA will start disposing of apartments and completing unfinished developments which will increase supply of housing and cut rents. Removal of rent relief reduces the amount that people have to spend on rent, reducing demand and thus rental levels.

None of this is massive: maybe 10% fall this year.

A good thing unless you are a landlord.

I am sure I seen .0.9% rise in rents in dublin somewhere in the papers or on the net?? anyone else seen this stat?

strandroad

fliball123 wrote: »

I am sure I seen .0.9% rise in rents in dublin somewhere in the papers or on the net?? anyone else seen this stat?

This always happens in the autumn when students are back in town and the demand is temporarily up. Wait for January figures...

am i bovvered

gurramok wrote: »

Liveable is 'meeting needs' where those needs are 'in decent nick' , location, heating, space etc. Then price comes into the equation. Think this was picked up wrong by both of ye

Of course price is a major factor, but not the only one.

The only factor that affects tenants on rentable property is price, every cent counts.

gurramok

am i bovvered wrote: »

Of course price is a major factor, but not the only one.

Rentable= liveable('in decent nick' , location, heating, space etc.) so all those boxes ticked then its a haggling of the price!

am i bovvered

I rent houses and I know that cost is not the only factor. I have lots of examples where a tenant has chosen a more expensive place because of other factors mentioned.

('in decent nick' , location, heating, space etc.)

these are subjective, one persons "decent nick" is not always an acceptable standard to another person.

i won't bother with the wink :cool: