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Will domestic rents drop in the next 6 - 12 months?

  • 19-01-2011 11:35pm
    #1
    worded
    Registered Users, Registered Users 2 Posts: 4,639 ✭✭✭


    Ive taken a drop in income and need to see a drop in rent on the horizon.

    Ive got a 15% drop per year for the last two years and need similar this year.

    What are the chances?


Comments

  • #2
    Xiney
    Registered Users, Registered Users 2 Posts: 8,085 ✭✭✭Xiney


    As long as the employment situation continues to either worsen or stagnate, and as long as net emigration continues, rents will have to continue to decrease.


    Yes, landlords have mortgages to pay but the fact of the matter is that there are more rental properties available than tenants looking for them (certain high demand parts of the country excluded, areas in Dublin or near colleges for example) and they will drop the rent as low as it takes to get tenants to move in. Some income is better than no income.

    Added to that are the landlords who have no mortgage and therefore have less to worry about by dropping the price, in addition to rent supplement levels (often viewed as an artificial "bottom" of the rental market) getting slashed every 6 months at this stage by every budget and supplementary budget.


  • #3
    who_ru
    Registered Users, Registered Users 2 Posts: 2,033 ✭✭✭who_ru


    the esri has today indicated that 100,000 people will emigrate over the next 2 years. this is higher than the numbers that left this country in the 1980s recession, which was perceived as being the low point in recent irish histroy.

    the real reason you are not seeing a widespread fall in rents is down to the financial institutions that provided the money for buy to let investors.

    they do not want to see a situation whereby rents fall too far, which will reflect falling values in properties/assets that they essentially own.

    added to that of course you will have LL's that won't countenance a 50 euro drop per month in rent. but equally you will also have LL's who are willing to negotiate.

    state you case OP - state that you, like everyone else, must live within your budget, and therefore can offer x amount per month.


  • #4
    shoegirl
    Registered Users, Registered Users 2 Posts: 2,029 ✭✭✭shoegirl


    There has to come a point where LLs will be forced to drop prices in order to keep some kind of cash flow. With less money in everybodies pockets and persistent cuts to SWA rent subsidies I'd say rents should drop but you might need to shop around and move as I doubt your LL can afford to keep cutting.


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