Why is Newbridge rent so expensive?

boredatwork82

I am looking at renting a room in Newbridge. The prices of rooms to rent is crazy 300-350 per month and bills on top of that.

All the same rooms have been up on daft for the last month. and people don't seem to be dropping prices or to be prepared to negotiate.

As all the rooms I have looked at are up for a month so far when will people learn that if no one is renting the room then the price is too high.

I understand people have mortgages to pay, but surely 250 a month is better than holding out for 350 for 2 or 3 months before finally dropping the price to rent out the room.
Its crazy.
I know Newbridge is nearer Dublin, but is there any other reason why the prices are so high, or is it just people still living in Celtic Tiger Ireland?

JeffK88

Think the main reason for rent been so high is because of the Whitewater shopping centre ease of access to dublin by train,bus eireann bus and Dublin coach link to the Red Cow luas not forgetting the motorway. Strangely enough its cheaper in some parts of celbridge to rent so alot of it is just down to landlord greed

maxer68

Good 3 bed house will cost about 250k in newbridge. An investor will need 7% return. That's 17500 rent for a sustainable investment or 1400 per month.

Based on this international benchmark a good room at 300 - 350 represents reasonable value.

muletide

maxer68 wrote: »

Good 3 bed house will cost about 250k in newbridge. An investor will need 7% return. That's 17500 rent for a sustainable investment or 1400 per month.

Based on this international benchmark a good room at 300 - 350 represents reasonable value.

Surely the above example just goes to prove that the 250k initial price is way too high.

245

maxer68 wrote: »

Good 3 bed house will cost about 250k in newbridge. An investor will need 7% return. That's 17500 rent for a sustainable investment or 1400 per month.

Based on this international benchmark a good room at 300 - 350 represents reasonable value.

The investors % return is no concern of the tenant and may be based on an unwise purchase price.

Can you show us a stable European market that yields 7% return? 4% seems a lot more realistic.

http://www.globalpropertyguide.com/Europe

maxer68

245 wrote: »

The investors

% return is no concern of the tenant and may be based on an unwise purchase price.

Can you show us a stable European market that yields 7% return? 4% seems a lot more realistic.

http://www.globalpropertyguide.com/Europe

Most non main city yields are 6-7%. City yields will be about 2% lower as they have higher occupancy rate and hold capital value better. It comes into play for tenants to know the MAX they should pay for rental and would be based on current pricing.

Imo 300 is not too bad for monthly room rental. (assuming its not a box room and half decent area)