Houses/landlords required

poker--addict

http://www.raymondpotterton.com/news/attention-landlords-2/

Many auctioneers lately are advertising to gain properties to let, is this just standard advertising or are they genuine? It seems bizarre that their could be such high demand for rental properties. I accept people can not afford to buy homes yet, or they are waiting, but one would have thought there is enough vacant properties ?

Dr Turk Turkelton

Hi Poker_Addict
There seems to be a shortage of decent rental properties in Trim where this agent is based.
I am very good friends with another agent in the town and she has told me she cannot get enough properties to rent and as soon as one come along its gone within the day!
The keyword is decent though!

poker--addict

There is no shortage of decent houses for sale in trim and navan area, many even on or getting close to the infamous 1 in 14 rule or the required yield to buy to let. If there was so much demand wouldn't people be buying to let more? Or at least would these empty for sale houses not be let by their current owners?

In summary there seems to be vacant houses all across meath, but yet a shortage of rental properties?

I am not sure what way to look at it but something just doesn't add up for me - but then again i do not have an in dept knowledge of this, yet!

Is there an issue here where people are refusing to pay fair rent prices as they attempt to save to buy?

Dr Turk Turkelton

I don't know much about Navan prices or rent but if you look in daft,Trim seems to be 7-800 for any 3-4 bedroom house per month.
The average price in Trim is for these houses is still around the 150k mark so the yield is not there for investing.

Milk & Honey

poker--addict wrote: »

There is no shortage of decent houses for sale in trim and navan area, many even on or getting close to the infamous 1 in 14 rule or the required yield to buy to let. If there was so much demand wouldn't people be buying to let more? Or at least would these empty for sale houses not be let by their current owners?

In summary there seems to be vacant houses all across meath, but yet a shortage of rental properties?

I am not sure what way to look at it but something just doesn't add up for me - but then again i do not have an in dept knowledge of this, yet!

Is there an issue here where people are refusing to pay fair rent prices as they attempt to save to buy?

There are no funds available for buy to let mortgages therefore even if rental yields are good there will be few buyers.
It is difficult to market an occupied house and many people selling have no choice but to sell and do not wish to be trouble by having tenants in situ.
There is demand for rentals because many people are unable or unwilling to buy.

NIMAN

Chatting to a friend the other day who is looking to rent in around the NW (Donegal or Derry City) and he said that there is not a great supply of houses out there. Said that the numbers available for renting have really dropped off the last few years, and a lot of the ones available are poor quality.

Apparently with the lack of mortgages being granted, as well as people being afraid to commit to a mortgage, the rental market has seen a huge increase in demand in recent years, making it a landlords market.

The_Conductor

The keyword in all of this is 'decent' quality houses. A lot of the recent built properties (read- virtually everything since 1995 in lieu of 'recent') is considered by many to be subparr for prospective tenants (both build quality, but also the manner in which it has been kept in recent years).

There is no shortage of houses- there is a shortage of houses that people are interested in renting (or buying) however.

Perhaps a few of our unemployed construction workers may have a future here after all?

StillWaters

smccarrick wrote: »

The keyword in all of this is 'decent' quality houses. A lot of the recent built properties (read- virtually everything since 1995 in lieu of 'recent') is considered by many to be subparr for prospective tenants (both build quality, but also the manner in which it has been kept in recent years).

There is no shortage of houses- there is a shortage of houses that people are interested in renting (or buying) however.

Perhaps a few of our unemployed construction workers may have a future here after all?

That is a very interesting point that I have never seen discussed here before. Although building regs have been tightened up, the problem as I see it with building decent family homes in areas near social and economic opportunities is the absence of land.

People are so exercised about NAMA empties, they forget that NAMA has huge swathes of landbanks which Developers were hoarding. Therefore the cost of land has not collapsed in line with housing. It is not possible to build houses at the same cost as buying them due to land cost.

I cannot see this land being released onto the Market any time soon.
Perhaps there could be some type of cooperative building scheme, similar to what happened in the early - mid 70s?

Milk & Honey

StillWaters wrote: »

That is a very interesting point that I have never seen discussed here before. Although building regs have been tightened up, the problem as I see it with building decent family homes in areas near social and economic opportunities is the absence of land.

People are so exercised about NAMA empties, they forget that NAMA has huge swathes of landbanks which Developers were hoarding. Therefore the cost of land has not collapsed in line with housing. It is not possible to build houses at the same cost as buying them due to land cost.

I cannot see this land being released onto the Market any time soon.
Perhaps there could be some type of cooperative building scheme, similar to what happened in the early - mid 70s?

The price of land has collapsed even more that the price of houses. No bank will lend money to buy it, no bank will finance development on it. NAMA is not selling much of it because it would get so little for it.

StillWaters

I stand corrected, I thought zoned well placed land prices had stayed high.

evolving_doors

Milk & Honey wrote: »

The price of land has collapsed even more that the price of houses. No bank will lend money to buy it, no bank will finance development on it. NAMA is not selling much of it because it would get so little for it.

hmm not to sure about that, but i think i agree with most of it, it depends on the region really...also the price may be 'relatively' low compared to 2007 but the supply side could also be low...With the predicted rise in future food prices (in particular Irish foods like dairy and meet for export) then it would be a very good investment to release it slowly onto the market and keep the price high. There was also another article saying that farmers were very slow to approach nama .(usually in business negotiations whoever calls the price first looses so it's like a mexican standoff)

have a look at this article here Irish Times

Quote:THE PRICE of land, which fell from a high of €20,000 per acre nationally in 2007 to €8,000 in 2010, began to recover in 2011.......Robert Ganly of Knight Frank says its figures show a nationwide average of €8,776 last year; the latest figures price agricultural land at €10,064, a rise of 14 per cent.

Prices are definitely going to rise allrght but I have a feeling that people may have learned their lesson somewhere along the line..

smellslikeshoes

Managing rental properties is probably the only place a lot of estate agents are making money from right now, making advertisements like that is their way of getting a slice of the pie.

Milk & Honey

Armelodie wrote: »

hmm not to sure about that, but i think i agree with most of it, it depends on the region really...also the price may be 'relatively' low compared to 2007 but the supply side could also be low...With the predicted rise in future food prices (in particular Irish foods like dairy and meet for export) then it would be a very good investment to release it slowly onto the market and keep the price high. There was also another article saying that farmers were very slow to approach nama .(usually in business negotiations whoever calls the price first looses so it's like a mexican standoff)

have a look at this article here Irish Times

Quote:THE PRICE of land, which fell from a high of €20,000 per acre nationally in 2007 to €8,000 in 2010, began to recover in 2011.......Robert Ganly of Knight Frank says its figures show a nationwide average of €8,776 last year; the latest figures price agricultural land at €10,064, a rise of 14 per cent.

Prices are definitely going to rise allrght but I have a feeling that people may have learned their lesson somewhere along the line..

When I said the price of land, I meant the price of land as in potential building sites. That is the context of this discussion. Agricultural land is doing well but the selling of formerly agricultural land for development is not happening. Many farmers made huge money by selling land for potential development.

StillWaters

But the supply of development land is so tight, can one say if it has collapsed or not?

In the county where I live, there is NO decent development land for sale, and NAMA is sitting on some very tasty landbanks.

Earmarked at the time of course for high density townhouses and apartments, but were 3/4 bed family homes to be built on it, they would be highly desirable.
In the 70s, banks like now were not lending, and the Government released land to co-operatives to build family homes. I grew up in one, in fact IIRC there was even a shared heating/water system. I am currently living in one now, so well built were they. In fact, wasn't a lot of the post war housing in Ireland built in this way?

I think there is a space for a similar scheme/movement now. I'm not in the market for being part of such a co-operative now, but were I in my 20s, I'd be agitating for such a scheme.

poker--addict

I'm in my 20s