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1 Bed Apartments - overpriced?

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  • 21-09-2011 10:20am
    #1
    Comordha
    Closed Accounts Posts: 562 ✭✭✭


    I am looking to rent a 1 bed in a number of suberbs outside Dublin city centre. Can anyone explain to me why some are on the market for more than 2 beds in the same block / unit. It defies logic. From my perspective I may as well take the 2 bed for an extra €20 a month (or whatever the minimal difference is). 1 beds seem to be overpriced to me, at approx €800-€1000 p/month. Can anyone explain this enigma to me?


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    #2
    ShadowHearth
    Registered Users Posts: 22,929 ✭✭✭✭ShadowHearth


    People bought them when bubble was at it's best. Most of owners try to cover tear repaemts by renting. So if landlord paying 1k mortgage, he wants tenant pay 1k too.

    Add landlords dole, which keeps rent prices high too.


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    #3
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    Yes, rent allowance is the problem. You'd get a decent 1 bedder for 400 per month no bother if the government wasn't handing out a fortune to landlords for rent allowance cases. If they cut it, those needing RA would still get a place (because the landlords wouldn't leave them all standing empty) and the market price would come down instantly to the new RA minimum.


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    #4
    who_ru
    Registered Users Posts: 2,033 ✭✭✭who_ru


    just don't pay it.


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    #5
    Newaglish
    Registered Users Posts: 2,734 ✭✭✭Newaglish


    They generally expect couples rather than individuals to rent out 1-beds also, so they're still going to charge as if there are two tenants.

    Also, rent allowance.


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    #6
    blah
    Registered Users Posts: 938 ✭✭✭blah


    It's all because rent allowance sets an artificial minimum. The only places that are less than that are places so remote or of such poor quality that rent allowance tenants won't live there.


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    #7
    xper
    Registered Users Posts: 1,061 ✭✭✭xper


    Comordha wrote: »
    I am looking to rent a 1 bed in a number of suberbs outside Dublin city centre. Can anyone explain to me why some are on the market for more than 2 beds in the same block / unit. It defies logic. From my perspective I may as well take the 2 bed for an extra €20 a month (or whatever the minimal difference is). 1 beds seem to be overpriced to me, at approx €800-€1000 p/month. Can anyone explain this enigma to me?
    You seem to have contradicted yourself there. I don't think I've come across a case where a 1-bed is being offered at a higher price than a 2-bed in the same complex at the same time. I suppose it can happen where the 1-bed owner has badly misjudged the market since it is certainly the case that the true market price difference between two otherwise similar apartments is going to be about 150-250 euros.

    Its not that mad if you think about it. Both properties are going to share lots of the same features - four walls, floor, ceiling/roof, doors, kitchen, bathroom, living room, heating, electricity supply, water supply, patio/balcony, storage and one bedroom. These will all be of a similar cost, allowing for slight size differences, to provide to you (either as buyer or renter). The only principal difference is that one property offers a second bedroom so the cost difference is relatively small.
    There's no doubt other factors at play such as possible supply and demand differences between the two types but I think you can maybe see why the price difference is not so huge and consequently there's a premium for getting a little place to yourself/selves.


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