Originally Posted by oceanman
with all the landlords leaving the market because they supposedly cant make any money! you should have no trouble picking up something..
The issue is the regulatory environment whereby even now- if a tenant decides to play the system- it can take over 2 years to regain vacant possession of a property that a tenant decides to stop paying the rent on. In addition- there just isn't any point in pursuing a case against them- they only have to plead penury- and you get nothing (or a derisory amount) from them- alongside your own legal costs (they get free legal aid).
Its a rigged system.
If the ability to reclaim a property promptly when a tenant overholds- and to impose a financial sanction that you could actually effect- was implemented- you'd have prospective landlords piling into the system.
According to the RTB- the lions share of 'new' landlords in the last 3 years- are the housing associations who are being encouraged to list tenancies one by one (other than in communal developments) which gives the absolute number of landlords an artificial boost- however, even that 'trick' has reached the end of the road.........
Rents are far beyond where they should be- and for some people that is incentive enough to keep going- however, for others- its a clarion call highlighting how unsustainable the situation is.
Salaries in some sectors- are doing very nicely- if you work in IT, Finance or a small subset of other sectors- you are doing very well indeed. For everyone else- the crash of 10 years ago- and the years of the wilderness- have never ended- we may have jobs- however, our pay rates may never recover- and job security and benefits will never ever be what they once were. Some salient issues trundling along in the undergrowth that haven't really factored for today's workers- include the incremental increases being added to the age at which the old age pension vests- we are rapidly going down the road of never retiring............
Current rent levels-other than for corporate and extremely high spec lettings- are clearly unsustainable- and need to fall. How/when this happens- is a function of just how quickly supply can be ramped up. The issue with the rental sector- is the absolute number of units in the sector- is not growing apace with demand- thanks to a reticence among the traditional landlords to buy further additional units (or indeed a single unit- which traditionally was the 'pension' for many people).
We need more supply (in general)- however, when we do get more supply- we need to be cognisant of how this supply is going to affect the macro housing environment (which in a Dublin context- where many people are suggesting prices have plateau'ed- means a further exodus from the market).
Houses in an Irish context- have an extremely troubled history- a history that we quite simply don't seem to have learnt any lessons from.
If someone wants to buy an apartment in Dublin city centre to rent out- at 250k- good luck to them finding one in a reasonable neighbourhood- and good luck to them if they ever have an issue with their tenant. They might get lucky- perhaps- perhaps not.
The latest FF wheeze- sounds like Property Bubble Mark 2- a race to see if we can bust a few more banks............