Landlord evictions 1000 in 2nd Quarter due to selling up

3DataModem

https://www.boards.ie/discussion/comment/119574771#Comment_119574771

All income is taxed, including dividends etc. If you want to make money on an investment then you have to expect tax. 6% is still a very strong gross yield.

The risks are real, and very painful, but the frequency is overstated. And if you are a REIT then you don't care, because as long as 90% of units are earning then you are making 90% of your expected yield i.e. the 'pain' averages out.

3DataModem

https://www.boards.ie/discussion/comment/119573821#Comment_119573821

I agree that the impact of a mortgage makes this a terrible cashflow investment. My example was assuming no mortgage and no life assurance, but I did factor in the rest of the costs. The point I was making is that it is very clear why REITs and cashed up individuals are buying and borrowing individuals are selling.

sk8board

Morning, full time LL here for 15 years.

1. re: accidental LL’s leaving the market - anyone who doesn’t want to be a landlord shouldn’t be in the market, it’s really that simple. if I had a euro for everyone over the years who told me “I’m thinking of buying a place around the corner and just rent it out”. I asked them all “do you actually want to be a landlord?” - and that was usually the end of the conversation. the market doesn’t need those people
2. theres an overhang of Celtic tiger investors coming out of negative equity. the current price levels give all accidental landlords the opportunity to leave the market, solve all their problems and in almost all cases have equity back in their pocket to use elsewhere.
3. however, and it’s a BIG however, the market does need a lot of landlords. Personally I think they should allow the market to professionalise. Of course I’m lobbing for my own end here, but the reality is that a professional market, with a structure to allow landlords form companies and be regulated according to the Residential Tenancies Act would be a far better market for tenants and LLs alike. The current market is very informal on the one hand, and regulations aren’t actively enforced on the other hand.
4. just over 66% of all landlords (120,000 from 160,000) have only one property rented. From an investment perspective, the risk associated with 100% of income coming from one tenant is huge, in such an illiquid asset. It makes absolutely zero investment sense.

and therefore a lot of accidental LLs are leaving the market, at a time when the materials cost of building houses is inflating rapidly.

the market is broken on both sides, but the landlord has an easy/lucrative ‘out’ that the tenant doesn’t have

Ray Palmer

https://www.boards.ie/discussion/comment/119577572#Comment_119577572

If what you are saying was true then the legislation brought in over the past 20 years would favour small landlords. Can you point to this? I can point to increased charges, taxes and restrictions that directly challenge your view. In other words they are doing a hell of a lot of negative things to small landlords to make logic of people who claim they are being treated favourably seem foolish.

I don't know any landlord happy with the current situation with most appalled at the failure of the government and the stupidity of the public who think private individuals are responsible for social housing and subsidised rent

RichardAnd

https://www.boards.ie/discussion/comment/119577761#Comment_119577761

I wasn't talking about landlords, but rather the housing situation in general. I wouldn't pretend that small landlords are some sort of protected class. Rather, my point was that an inflated housing market and abysmal rental market suits quite a lot of very influential people.

Ray Palmer

https://www.boards.ie/discussion/comment/119578023#Comment_119578023

You were saying that it was the majority it suited but now it is some elite class but there is a lot of them! Who are you talking about exactly rather than be cryptic? How are they doing it?

I can claim it is the reverse vampires controlling the market and just leave it there like you are. Public appetite for conspiracies and scapegoats exist as standard so it no surprise people think like you but they can never back it up with detail. Incompetence and chasing votes is much more believable as a cause than organised profiterring by a select group. When the ERSI warned of a lack of building and suggested government intervention the public claimed it was a conspiracy for TDs to help builder friends. So nothing was done and we got a housing shortage so now it is an elite group planned this. It isn't about politics it is about the mentality of the Irish people always assuming the government are at fault. Post colonial chip on our shoulder is the real cause.

fliball123

https://www.boards.ie/discussion/comment/119577601#Comment_119577601

Well its not just individuals that have borrowed its all small landlords with 1 or 2 properties as if 1 tenant acts the b0ll0x and decides not to pay the rent for 4 years + they could be in trouble so why would you gamble when the cards are stacked against you.

This country is bonkers with regards to housing people they stopped building social housing and then put in ridiculous practices that allow people stay in a house for up to 10 years without paying a mortgage or a renter staying in a house for 4 years with out paying rent. The state have shifted the responsibility, risk and burden to the private sector. That IMO is what needs to be addressed here and the idea that someone who has never worked a day in their life and they never intend to can get a social house or pushed further up the housing list because they drop a sprog or two is rewarding this type of non-planning behavior. Then these people if they dont get a house where they want they can refuse and continue to refuse until they get a house beside mummy with a south facing garden so mummy can look after the childers on "Micky money day". Complete joke of a country - people on a housing list should be offered housing in parts of the country where housing is less scarce and it would be a take or your off the housing list. We have the tail wagging the dog in this country when workers have no option but to commute to work over long distances but those who dont want to work have carte blanche when it comes to where they want to dwell