renting dead money

ScumLord · 03-10-2012 09:43PM

ted1 wrote: »

Enjoying working when your in your seventies, your going to have to pay rent. Me I'll own my house.

Will you? Or will the bank still own your house?

robinph · 03-10-2012 09:43PM

Red About Town wrote: »

What are the levels of home ownership in other European countries in comparison to Ireland?

http://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate

demakinz · 03-10-2012 09:45PM

i'm much happier renting, if anything goes wrong in the house the landlord has to fix/replace it. so far in the last two years we had to get a new fridge and new shower and a new roof on the shed and a new washing machine. we didn't have to pay a penny. plus with a 6 month or one year lease we can up sticks and leave if we need to. I can see why people think its dead money but id much rather pay x euros a week rent than struggle to pay off a mortgage thats in negative equity.

B.A._Baracus · 03-10-2012 09:47PM

cena wrote: »

If houses where much cheaper I would like to look into buying a house. WE had a family home till the parents split

Bloody rip off.
My view is that, well in theory anways, that renting is dead money. Its best to own than rent. Its like renting a tv. You buy it, you own it. But you rent you'll never own it and continue to "waste money"

But that just doesnt translate to property.
First off, you have to pay a mental amount of money to buy the property. Money that most people dont have. So you have to get a mortgage and get ripped off further by the banks. So they give you 200,000 but want 430,000 back in return! ... Spead over 35 years (or whatever)

... So your option is to rent. Problem there is you will get ripped off too with rent. :rolleyes: which makes you think why in the bloody hell should you pay for someones mortgage or income ... then think maybe renting is wasted money. Its like a cycle isnt it?

*edit*
Scratch that. It isnt a cycle. You're fuc*ed either way.

krudler · 03-10-2012 09:50PM

usernamegoes wrote: »

I wish we had more of a culture of empty renting here; I hate the stuff Landlords ram into places here.

Also, I'd like to be able to do stuff like add a kitchen to the style I like. Hard to do in a renter, perhaps if we had more of a professional landlord system with longer term renting.

hell with that, its expensive enough moving without having to provide your own furniture as well, i'd only buy my own furniture for my own house.

usernamegoes · 03-10-2012 09:52PM

krudler wrote: »

hell with that, its expensive enough moving without having to provide your own furniture as well, i'd only buy my own furniture for my own house.

The point would be, it would be cheaper unfurnished. If you'd buy furniture for your own house why not for somewhere you're renting?

Squ · 03-10-2012 09:53PM

We spent 28,000 over the last two years on rent while 1,500,000 dropped of the price of the house we're buying..

Bit of a no-brainer really..

omahaid · 03-10-2012 09:57PM

Its tough moving three young kids every few years especially when they've made friends and when you're renting in Ireland. Is it dead money though?

I suppose its the right tool for the right job at the right time and at other times buying a house is the right tool.

jsd1004 · 03-10-2012 09:59PM

usernamegoes wrote: »

I wish we had more of a culture of empty renting here; I hate the stuff Landlords ram into places here.

Also, I'd like to be able to do stuff like add a kitchen to the style I like. Hard to do in a renter, perhaps if we had more of a professional landlord system with longer term renting.

I never heard of a tenant ever..ever wanting to put in a kitchen..keeping the cooker clean is usually a challenge..

B.A._Baracus · 03-10-2012 10:00PM

Squ wrote: »

We spent 28,000 over the last two years on rent while 1,500,000 dropped of the price of the house we're buying..

Bit of a no-brainer really..

Bs, right?

Juniorhurler · 03-10-2012 10:01PM

Squ wrote: »

We spent 28,000 over the last two years on rent while 1,500,000 dropped of the price of the house we're buying..

Bit of a no-brainer really..

Whoever is investing in a (probably) €2,000,000 ish house to get €14000 pa in rent needs to have a look in the mirror because they are no business man. If they had sold the house and even lodged the money in the post office they would earn more than that in interest with no hassle.

That assumes they own the house cos if they borrowed to do this they are even more retarded.

Juniorhurler · 03-10-2012 10:02PM

B.A._Baracus wrote: »

Bs, right?

I would think so, yes.

MadsL · 03-10-2012 10:02PM

ted1 wrote: »

Enjoying working when your in your seventies, your going to have to pay rent. Me I'll own my house.

How much will maintainance and interest have cost you? The stock markets have recovered massively compared to property. The 30 year renter may well be plonking down cash at the end of their working life and have a much better pension.

In other news bananas do not grow on trees...

usernamegoes · 03-10-2012 10:02PM

jsd1004 wrote: »

I never heard of a tenant ever..ever wanting to put in a kitchen..keeping the cooker clean is usually a challenge..

Of course you haven't; that's the point I was making. When renting you can't do that kind of thing. For various reasons, you might be gone very soon so money is wasted, plus you're not benefiting from the capital investment.

jsd1004 · 03-10-2012 10:03PM

Squ wrote: »

We spent 28,000 over the last two years on rent while 1,500,000 dropped of the price of the house we're buying..

Bit of a no-brainer really..

If you are looking at buying a 4 million euro house how come you are living in a kip for the last 2 years that only costs 1200 a month..

Monty Burnz · 03-10-2012 10:04PM

usernamegoes wrote: »

I wish we had more of a culture of empty renting here; I hate the stuff Landlords ram into places here.

There's a huge gap in the market for unfurnished apartments and houses. An intelligent landlord with a few properties would clean up - also they could be assured their tenants would stay longer and treat the place more like their own home and not a place to trash.

Monty Burnz · 03-10-2012 10:05PM

jsd1004 wrote: »

If you are looking at buying a 4 million euro house how come you are living in a kip for the last 2 years that only costs 1200 a month..

The most expensive properties have been dropping like stones. Something that they were asking 2.5 million for a couple of years ago could easily be on for 1 million now.

By the way, you can get a nice place for 1.2k. Depends on what type of property, and where it is.

girl2 · 03-10-2012 10:07PM

http://www.irishtimes.com/newspaper/property/2011/1117/1224307694424.html

One man's opinion.

MadsL · 03-10-2012 10:07PM

http://www.daft.ie/searchrental.daft?id=1260776

Kip?

This example looks just fine to me.

Why would a €1200 a month rental be a kip?

B.A._Baracus · 03-10-2012 10:08PM

Monty Burnz wrote: »

The most expensive properties have been dropping like stones. Something that they were asking 2.5 million for a couple of years ago could easily be on for 1 million now.

By the way, you can get a nice place for 1.2k. Depends on what type of property, and where it is.

So you are telling us Squ is a millionaire who likes to vist boards.ie in his spare time? :pac:

jsd1004 · 03-10-2012 10:11PM

Monty Burnz wrote: »

The most expensive properties have been dropping like stones. Something that they were asking 2.5 million for a couple of years ago could easily be on for 1 million now.

By the way, you can get a nice place for 1.2k. Depends on what type of property, and where it is.

Yeah right..you are looking at buying a property for 2,5 -4 mil and you will settle for a rental of 1200 a month for years. It shows the mentality of renting in ireland. Prepared to pay big money to buy but wont if they are renting (because its dead money..)

MadsL · 03-10-2012 10:14PM

Monty Burnz wrote: »

There's a huge gap in the market for unfurnished apartments and houses. An intelligent landlord with a few properties would clean up - also they could be assured their tenants would stay longer and treat the place more like their own home and not a place to trash.

Fully agree, we rented for 7 years in a brand new place that we just caught as the landlord was furnishing, we asked him not to and bought some extra pieces to fill out what we had. He got no break in our tenancy as a result.

Unfurnished long-term rentals are desperately needed. It seems to be growing, I just found 69 on Daft - years ago it would have been 2.

renofan · 03-10-2012 10:16PM

usernamegoes wrote: »

I wish we had more of a culture of empty renting here; I hate the stuff Landlords ram into places here.

Also, I'd like to be able to do stuff like add a kitchen to the style I like. Hard to do in a renter, perhaps if we had more of a professional landlord system with longer term renting.

I rent a two bed house on half an acre for €450 a month. On the Dublin Bus route, only 45 mins from Dublin airport and 50 mins to Dublin port. Since we moved in I've done up the bathroom, 1 bedroom and we just put in a new kitchen that we designed the layout for. I can put a garden shed up, we threw out most of the furniture that was here and bought our own. Any changes we've done the landlord has paid for. We've been very lucky. My sister and brother rent and neither can hammer so much as a nail into a wall.

There is no way I'd get a mortgage and I can say I would't get a mortgage for where we are for €450 a month. Plus if we decide to move its only a week or two hassle at most. If we can convince the landlord that this place needs a shed for a few cars I could stay here for years!!

Red21 · 03-10-2012 10:19PM

In my town in the mid-80's you'd pay 14,500 for a decent house and at the time people tought that house prices were far too high. 25 years before that in the early 60's i believe houses were about 2000k a piece, over all this time there has been slumps but houses/land rarely stays down for long. If you're planning on renting long term you will always be paying in line with inflation whereas everyone who has ever taken out a 20+ year morgage in this country has had an easy time making repayments by the time they're half way through the term.

MadsL · 03-10-2012 10:21PM

Red21 wrote: »

In my town in the mid-80's you'd pay 14,500 for a decent house and at the time people tought that house prices were far too high. 25 years before that in the early 60's i believe houses were about 2000k a piece, over all this time there has been slumps but houses/land rarely stays down for long. If you're planning on renting long term you will always be paying in line with inflation whereas everyone who has ever taken out a 20+ year morgage in this country has had an easy time making repayments by the time they're half way through the term.

Both interest rates and inflation have been at pretty low levels in the past 10 years.
In an overpriced market, renting is a no-brainer.

jsd1004 · 03-10-2012 10:23PM

MadsL wrote: »

Fully agree, we rented for 7 years in a brand new place that we just caught as the landlord was furnishing, we asked him not to and bought some extra pieces to fill out what we had. He got no break in our tenancy as a result.

Unfurnished long-term rentals are desperately needed. It seems to be growing, I just found 69 on Daft - years ago it would have been 2.

If there is a demand they will be available. I recently unfurnished a house for tenants. I think every landlord would be delighted if they did not have to furnish a house and indeed repair and replace appliances and suffer wear and tear and damage. Long may it continue.

Monty Burnz · 03-10-2012 10:25PM

B.A._Baracus wrote: »

So you are telling us Squ is a millionaire who likes to vist boards.ie in his spare time? :pac:

...because millionaires don't use the internet...

03-10-2012 10:25PM

Personally I cannot wait to buy or build my own place. More than likely I will buy and apartment first then after a few years build my own house at home to my specs with the rooms I want, furnishings I want etc.

As a general rule now mortgage repayments are less than rent and in some cases much less. The argument that interest is dead money is nonsense as every month you are reducing what you owe the bank and are working towards ownership while renting is are getting nothing but a place to stay for the next month.

Paying rent pains me as much as nearly any other outgoing, while my car loan doesn't in the slightest as I know every month I'm getting a step closer to full owning it.

MadsL · 03-10-2012 10:26PM

jsd1004 wrote: »

If there is a demand they will be available. I recently unfurnished a house for tenants. I think every landlord would be delighted if they did not have to furnish a house and indeed repair and replace appliances and suffer wear and tear and damage. Long may it continue.

I trust landlords are learning more about how important who the tenant is and less about where to buy the cheapest mattress and that we will see less "crying chair" furnishings in future.

http://www.urbandictionary.com/define.php?term=Crying%20Chair&defid=6758137

Monty Burnz · 03-10-2012 10:29PM

Lacey Creamy Potato wrote: »

Personally I cannot wait to buy or build my own place. More than likely I will buy and apartment first then after a few years build my own house at home to my specs with the rooms I want, furnishings I want etc.

As a general rule now mortgage repayments are less than rent and in some cases much less. The argument that interest is dead money is nonsense as every month you are reducing what you owe the bank and are working towards ownership while renting is are getting nothing but a place to stay for the next month.

Yes, but renting is often far, far cheaper. I've trotted out the example here for the last few years that I rented a place in Dublin in the mid 2000s for 1.5k that would have cost 4k per month to buy. The landlord was effectively subsidising me to live there. Of course, now it would cost less to buy, but it's still cheaper to rent the same type of house.

The 'rent is dead money' meme is one that caused untold misery in this country, and you'd think it would f*ck off and die, but no - the hard of thinking are doing their very best to keep it alive.

renting dead money

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