Why no Rent allowance?

Asmooh

Hello,

I wonder why so many properties do not allow rent allowance, and also wonder why those properties are so expensive?

If rent allowance is possible, is it also possible when you make more than 20k / year? Because I think paying 600-800 / month excluding water, electricity and everything is expensive.

obriendj

Asmooh wrote: »

Hello,

I wonder why so many properties do not allow rent allowance, and also wonder why those properties are so expensive?

If rent allowance is possible, is it also possible when you make more than 20k / year? Because I think paying 600-800 / month excluding water, electricity and everything is expensive.

Does it not depend where you are looking?

600 - 800 for a 1 bed in dublin city centre is cheap but the same price for a 1 bed in roscommon or longford is expensive. obviously.

There is a stigma about Rent allowance and can be justified in some cases.

L1011

Asmooh wrote: »

I wonder why so many properties do not allow rent allowance

Too many landlords have had bad experiences with RA tenants and are unwilling to risk the same again. Additionally, most properties are inherently too expensive for RA tenants to rent anyway.

Asmooh wrote: »

and also wonder why those properties are so expensive?

Because that's what the market is paying for them.

Asmooh wrote: »

is it also possible when you make more than 20k / year?

No.

Asmooh

obriendj wrote: »

Does it not depend where you are looking?

600 - 800 for a 1 bed in dublin city centre is cheap but the same price for a 1 bed in roscommon or longford is expensive. obviously.

There is a stigma about Rent allowance and can be justified in some cases.

Oh... I'm used to 420 euros / month for a apartment with 2 sleeping rooms, large living room,large basement, 2 balcony's, bathroom and still getting 79 euros / month rent allowance.

Google on "6134am maps"

Captain Chaos

I'm paying 950 sharing. The market is gone crazy out there. It's going to get worse too sadly.

Gatling

Captain Chaos wrote: »

I'm paying 950 sharing. The market is gone crazy out there. It's going to get worse too sadly.

Seriously

Captain Chaos

Gatling wrote: »

Seriously

Yep, the agency is looking to put it up another €200pm in a few months. Can't afford that. Have to move home again by the looks of things. The only way that I console myself is that it is not uncommon for someone my age to end up in this situation.

Starting to wish I jumped on a house in the boom times.

Eldarion

Captain Chaos wrote: »

I'm paying 950 sharing. The market is gone crazy out there. It's going to get worse too sadly.

To be fair now €1900 between 2 or €2850 between 3 means you're looking at a penthouse or luxury apartment right in Dublin city centre. The market is mad but not THAT mad...yet.

_Kaiser_

Captain Chaos wrote: »

Starting to wish I jumped on a house in the boom times.

Spot on.. instead I decided that I didn't want to live in the middle of nowhere and spend 3/4 hours a day in the car commuting, and what if it all went wrong, so I refused the fortnightly calls of "free money!"

As it turns out though I should have taken them up on the offer as I've ended up paying for it anyway over the last 7/8 years - lost my job first and now I am stuck paying over the odds to rent a place in Dublin (because that's still where all the jobs are), when I could have just cried poverty and not paid my mortgage like so many others did, still kept my house and now be coming out of NE as well!

I've long since come to the realisation that doing things "right" in this country only leaves you more open to being screwed over by those who didn't - and the higher up you go in our society the more blatant it is!

obriendj

Asmooh wrote: »

Oh... I'm used to 420 euros / month for a apartment with 2 sleeping rooms, large living room,large basement, 2 balcony's, bathroom and still getting 79 euros / month rent allowance.

Google on "6134am maps"

Thats great that you are used to paying so low and I hope that you saved while living in Netherlands. I wonder how much it would cost to purchase that apartment?

But it is different here. we like our extremes. Either really low rent in 2010 to really high now. We are all greedy here regardless if we are a tenant or landlord.

obriendj

Eldarion wrote: »

To be fair now €1900 between 2 or €2750 between 3 means you're looking at a penthouse or luxury apartment right in Dublin city centre. The market is mad but not THAT mad...yet.

agreed. regardless of how much you dont want to move, it is surely in your interest to reduce, build up a saving - buy a place, then you wont be in this position for the rest of your days.

you might not be able to afford anywhere near what you are in now but at least it will be yours.

Asmooh

OSI wrote: »

That unfortunately is the reality of the current market. I'm guessing you're renting by yourself and not looking to share?

I have share now for 270 / month but I want my own place

Eldarion

Asmooh wrote: »

I have share now for 270 / month but I want my own place

Unfortunately most people feel the same way. Higher demand, higher prices. You gotta be willing to pay for it.

The Spider

Asmooh wrote: »

I have share now for 270 / month but I want my own place

Well, unfortunately that means you'll have to earn more money, if you're living in Dublin, forget about it, won't happen. If you live somewhere else in Ireland rents wont be as high.

To have your own place in Dublin you need to earn at least 50-55k a year, to have any sort of income left after rent.

obriendj

Asmooh wrote: »

I have share now for 270 / month but I want my own place

270 a month?
That's not bad for renting unless you have to share a bed with a stranger or living in a shed.

Asmooh

The Spider wrote: »

Well, unfortunately that means you'll have to earn more money, if you're living in Dublin, forget about it, won't happen. If you live somewhere else in Ireland rents wont be as high.

To have your own place in Dublin you need to earn at least 50-55k a year, to have any sort of income left after rent.

Wow that's insane! Now I understand why people are living shared so much.
Well I don't want to live in Dublin, I'll would like to stay in Co.Kildare instead, maybe Naas, Mmaynooth or Celbridge, not too far from Leixlip, maybe it would be nice if there is a train connection from Dublin to it but not required

Asmooh

obriendj wrote: »

270 a month?
That's not bad for renting unless you have to share a bed with a stranger or living in a shed.

No sharing a bed hahaha I have my own room, it's small but big enough for a bed, a TV, and a corner computer desk and a wardrobe

astrofool

_Kaiser_ wrote: »

I've long since come to the realisation that doing things "right" in this country only leaves you more open to being screwed over by those who didn't - and the higher up you go in our society the more blatant it is!

Regardless of what rational thought says, you'll never get "done over" by doing what the majority are doing, mortgage payments get helped by low interest rates and various other government policies, they need to do this to get elected, so the person who thinks he's being smart by staying out of a bubble, will only end up paying for everyone's else's recklessness. This isn't fair, but it is the way of the world.

That doesn't mean there isn't ways to get ahead in this system, investors who bought up office blocks 2-3 years ago are seeing 500% gains on their investment by taking a bet that the world wasn't going to end (and if it did, the money/loan was worthless anyway ).

Asmooh

OSI wrote: »

All of those towns have large local work forces earning 50-60k+ all vying for the same accommodation as you. Intel have a new whack of workers coming in soon and they're renting pretty much everything on the market around those areas. Rang to look at a house in Maynooth that had been up on Daft 4 hours. Letting agency had already had a group from intel ring and leave a deposit over the phone without even seeing it.

Hmm.. any other places I should look at?

OldNotWIse

Rental prices going mad again Moved in with parents in August to save for college fees. Was supposed to be temporary but I think I'll stay put for now! Rather give the money to them anyway

MrMorooka

The Spider wrote: »

To have your own place in Dublin you need to earn at least 50-55k a year, to have any sort of income left after rent.

Is that really true? I am budgeting for living on my own and it seems pretty do-able to me, not being particularly frugal - I am single, don't drink or go out much. I'm on €36k, putting away €6k in savings a year while living independently seems pretty good to me.

i.imgur.com/rzriWb7.png

Alanstrainor

MrMorooka wrote: »

Is that really true? I am budgeting for living on my own and it seems pretty do-able to me, not being particularly frugal - I am single, don't drink or go out much. I'm on €36k, putting away €6k in savings a year while living independently seems pretty good to me.

i.imgur.com/rzriWb7.png

950 rent wont get you much...

Eldarion

Alanstrainor wrote: »

950 rent wont get you much...

And rent/mortgage payments should only make up 25%-33% of your take home pay. You're already at 40%+ with €950.

athtrasna

I thought this thread was about rent allowance

Asmooh

I won't mind moving to the other side of Ireland, but I don't feel like paying 800 euro's / month just to get the train every day, tho it's not even possible if I need to start 7 or 8AM.

MrMorooka

Alanstrainor wrote: »

950 rent wont get you much...

It should get me this daft.ie/lettings/whatley-hall-archers-wood-clonee-dublin/1521683/

MrMorooka

Eldarion wrote: »

And rent/mortgage payments should only make up 25%-33% of your take home pay. You're already at 40%+ with €950.

Well it is impossible to live alone at a decent quality of life at 25-33% of the average industrial wage(€36k) in Dublin, so these are the breaks. I'll accept paying some more, as are 20% of Dubliners it seems. newstalk.com/One-in-five-people-are-spending-more-than-40-of-income-on-rent

drumswan

MrMorooka wrote: »

It should get me this daft.ie/lettings/whatley-hall-archers-wood-clonee-dublin/1521683/

When people say 'In Dublin' they dont mean a kilometre or two from the border with Meath

MrMorooka

So what should I do? My parents whom I'm living with now live even closer to Meath. I have €30k saved in the bank, but that's useless for accommodation because I am unlikely to buy in this country until I decide I want to stay here for the next 30 years, and if I did, I don't want to live in the kind of place €125k gets you.

Eldarion

MrMorooka wrote: »

Well it is impossible to live alone at a decent quality of life at 25-33% of the average industrial wage(€36k) in Dublin, so these are the breaks. I'll accept paying some more, as are 20% of Dubliners it seems. newstalk.com/One-in-five-people-are-spending-more-than-40-of-income-on-rent

And these are the same people moaning that they're stuck in a rental trap because their rents are too high for them to attempt to save for a deposit. Don't make the same mistake, save yourself and keep it under 33%.

MrMorooka wrote: »

So what should I do? My parents whom I'm living with now live even closer to Meath. I have €30k saved in the bank, but that's useless for accommodation because I am unlikely to buy in this country until I decide I want to stay here for the next 30 years, and if I did, I don't want to live in the kind of place €125k gets you.

Why €125k? Under the proposed rules you'd get approved for as much as €260k.

MrMorooka

Eldarion wrote: »

Why €125k? Under the proposed rules you'd get approved for as much as €260k.

Isn't it max 3.5 times income? 36*3.5 = 126.

Graces7

athtrasna wrote: »

I thought this thread was about rent allowance

Supposed to be! I have been on RA many years and never an issue BUT lower rental houses others might not choose and in rural areas. Being a single female pensioner probably helps. The ll and agencies who impress me, although they are few and far between, are those who say on their ad RA if suitable tenant which gives us a chance. Surely a person can tell the difference between someone with rowdy kids in tow and a quiet person.. I am seeing as I keep an eye on daft.ie that rents are going up. Thankfully although this house has its moments I have fair security here a my lls kids are under 7 years old. ie no family will need the house for a fair while yet and I am doing a fine job keeping it safe.

The Spider

MrMorooka wrote: »

Isn't it max 3.5 times income? 36*3.5 = 126.

Looking at your breakdown, you can't afford to live on your own and pay that rent, that's crazy, there's absolutely no wiggle room whatsoever in your calculations.

The reality of living outside of home is probably going to be different, you've set yourself up to live like a hermit there.

MrMorooka

Maybe I am a hermit?

But I don't really understand what you mean by wiggle room.. I have budgeted my expenses and I can cover them with some surplus. How much unallocated income do I need? What would I be spending it on?

Graces7

The Spider wrote: »

Looking at your breakdown, you can't afford to live on your own and pay that rent, that's crazy, there's absolutely no wiggle room whatsoever in your calculations.

The reality of living outside of home is probably going to be different, you've set yourself up to live like a hermit there.

Nothing wrong with living like a hermit; I have done it for decades,,

The Spider

MrMorooka wrote: »

Maybe I am a hermit?

But I don't really understand what you mean by wiggle room.. I have budgeted my expenses and I can cover them with some surplus. How much unallocated income do I need? What would I be spending it on?

You don't drink or go out much now, when you're living at home with your parents, but you'll feel it if you're living on your own staring at four walls every night and not talking to anyone, maybe you are a hermit and are comfortable with that, but in my experience you'd soon find yourself out somewhere, may not be a pub.

Cinema, met someone for food etc. You haven't budgeted for taxi's or nightlinks I see, Clothes?

May be ok for you but I wouldn't fancy it.

aido79

Asmooh wrote: »

Oh... I'm used to 420 euros / month for a apartment with 2 sleeping rooms, large living room,large basement, 2 balcony's, bathroom and still getting 79 euros / month rent allowance.

Google on "6134am maps"

You might get a one bedroom studio for that in Dublin. If you want something bigger you'll probably have to move to Leitrim or somewhere like that.

Asmooh

aido79 wrote: »

You might get a one bedroom studio for that in Dublin. If you want something bigger you'll probably have to move to Leitrim or somewhere like that.

LOL thats in the middle of nowhere

Moonbeam

I am a landlord and I accepted rent allowance.
The majority of my tenants have being great,1 did a lot of damage,way more then the deposit would cover.
When you have a private tenant renting you get a months rent and a deposit,when you have a rent allowance tenant then you get your deposit but you could be any amount of time waiting for social welfare to pay you their share of the rent.
I had to wait over 2 months for social welfare to pay it for my last tenant.

Victor

Folks, can we stay on topic?

Moderator

The Tempest

_Kaiser_ wrote: »

As it turns out though I should have taken them up on the offer as I've ended up paying for it anyway over the last 7/8 years - lost my job first and now I am stuck paying over the odds to rent a place in Dublin (because that's still where all the jobs are), when I could have just cried poverty and not paid my mortgage like so many others did, still kept my house and now be coming out of NE as well!

I've long since come to the realisation that doing things "right" in this country only leaves you more open to being screwed over by those who didn't - and the higher up you go in our society the more blatant it is!

Kaiser, I was in your situation during the boom & got badgered into buying by the missus in 2005.
I used follow your & others warnings on here about the imminent crash.
Luckily our tracker shielded us from the worst effects of being over-extended & now we can breathe a sigh of relief.
Your advice at the time was correct but what we didn't know then was how poor the banks would be in dealing with arrears & repossessions.
I see a neighbour of ours surrender her keys after not paying anything for over 5 years.
She gets to walk away scot free into the arms of her boyfriend & shiny new pad furnished by her massive savings.
Those who played the game fairly are the real victims of this burst bubble, and the wonder why the Irish love a rogue, go figure.