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Dublin - Significant reduction in rents coming?

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    #992
    Assetbacked
    Closed Accounts Posts: 2,969 ✭✭✭Assetbacked


    Assetbacked wrote: »
    No, we're actually faring well financially during the pandemic. We have a lease until February 2021 but won't be staying on as we want to rent a house with a garden in order to have a cat. If we were staying on and our lease was due to finish in the next couple of months I wouldn't try to break the balls of the landlord but I would say that we are reducing our budget by 200 a month as we noticed there are lots of apartments we would move to within that price range so this is our reason for moving and leave it open like that.

    Just on rents reducing, there is definitely a trend emerging of quite big rent drops. My search on Daft is for houses at 2300 max rent;

    https://www.daft.ie/dublin/houses-for-rent/dublin-2/eblana-villas-hogan-place-dublin-2-dublin-2036048/ this is a 2 bedroom house in a prime location near Grand Canal Dock and has dropped its rent by 250 to 2000. It has been listed since 3 June and from what I can tell, it is quite nice inside.

    https://www.daft.ie/dublin/houses-for-rent/ringsend/6-gordon-street-ringsend-ringsend-dublin-2051392/ not a price drop but 288 views in a day for a 2 bed house in Ringsend at 2k is pithy.

    https://www.daft.ie/dublin/houses-for-rent/clontarf/5-saint-josephs-square-clontarf-dublin-2044077/ a nice looking house in Clontarf has dropped from 2.5k to 2.1k since it was first listed on 25 June.

    https://www.daft.ie/dublin/houses-for-rent/donnybrook/pembroke-cottages-donnybrook-dublin-2048123/ a D4 cottage has knocked 210 off its asking price since it was listed on 7 July so it is now asking 1990. It's a bit small but I'd live in it (repplacing the couches and getting a coffee table), it's grand.

    https://www.daft.ie/dublin/houses-for-rent/goatstown/birchfield-lawn-goatstown-dublin-2051349/ a 4 bedroom house in Goatstown for less than 2k, that's a first! I'm guessing it had students before as it looks terrible inside.

    https://www.daft.ie/dublin/houses-for-rent/harolds-cross/35-harolds-cross-cottages-harolds-cross-dublin-2025783/ this house in Harold's Cross has been listed since April, originally at 2k and now is looking for 1.8k

    https://www.daft.ie/dublin/houses-for-rent/dublin-7/arbour-hill-stoneybatter-dublin-7-dublin-2030470/ 2.2k to 1.9k since it was first listed in mid-May in Stoneybatter. Really nice inside as well.

    https://www.daft.ie/dublin/houses-for-rent/dublin-2/44-sandwith-street-upper-dublin-2-dublin-2034398/ a house on Sandwith St, great location for workers in Grand Canal Dock and for those who want to be near Trinity/Grafton St. 100 off the asking since it was first listed at the end of May.

    I was just looking at these places again this morning and it shows that the nearly doubling of rental supply since 15 March is definitely a factor in rent drops;

    The D4 cottage and Goatstown house are now gone but all the others are still available.

    The Clontarf house has dropped its rent again to 1950 (from 2500 since first listed).

    The Eblana Villas place has dropped another 100 off its asking rental price.

    No price drops on the others - I'm surprised the Ringsend place is still available considering it is across the road from Google or maybe entirely unsurprised considering it is across the road from Google!

    From a review of my Daft search (max rent 2300 + houses + Dublin city) for new properties to highlight (one thing I note is that there are a lot of places available to rent - it is definitely a renter's market right now);

    https://www.daft.ie/dublin/houses-for-rent/ranelagh/9-athlumney-villas-ranelagh-ranelagh-dublin-2039649/ first listed 12 June asking 2200 rent, still available and now asking 2100

    https://www.daft.ie/dublin/houses-for-rent/dublin-2/eblana-villas-grand-canal-street-lower-dublin-2-dublin-2044754/ another Eblanas Villas house in Dublin 2, first listed a month ago asking 2000, now asking 1875

    https://www.daft.ie/dublin/houses-for-rent/irishtown/8-herbert-place-irishtown-dublin-2039009/ a house in Irishtown first listed in mid-June asking 2240, now looking for 2000

    https://www.daft.ie/dublin/houses-for-rent/stoneybatter/5-norseman-place-stoneybatter-dublin-2047173/ Stoneybatter, first listed 4th July asking for 2000, now 1900

    https://www.daft.ie/dublin/houses-for-rent/dublin-4/leeson-court-leeson-street-upper-dublin-4-dublin-2040333/ Leeson St. An airbnb which started life on Daft asking 2250 at the end of June, now 1900 but it's only one bedroom so, for me, still ambitious


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    #993
    Blut2
    Registered Users Posts: 2,907 ✭✭✭Blut2


    For some of those properties still on the market empty now approaching 2 months they really need some much more aggressive price drops. Better to get someone in ASAP, the market is only going to get worse over the next 6 months. The longer they wait to drop the price the more they'll have to drop it eventually (and the more months rent they'll forgo in the meantime).


  • Options
    #994
    errlloyd
    Registered Users Posts: 12,600 ✭✭✭✭errlloyd


    Blut2 wrote: »
    For some of those properties still on the market empty now approaching 2 months they really need some much more aggressive price drops. Better to get someone in ASAP, the market is only going to get worse over the next 6 months. The longer they wait to drop the price the more they'll have to drop it eventually (and the more months rent they'll forgo in the meantime).

    RPZ situation probably makes it a more complex equation.


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    #995
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Blut2 wrote: »
    For some of those properties still on the market empty now approaching 2 months they really need some much more aggressive price drops. Better to get someone in ASAP, the market is only going to get worse over the next 6 months. The longer they wait to drop the price the more they'll have to drop it eventually (and the more months rent they'll forgo in the meantime).

    A lot of landlords on the eviction ban extended thread are saying that they are better off leaving the property empty as tenants have too many rights and the rules are skewed in the tenants favour


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    #996
    Hubertj
    Registered Users Posts: 2,000 ✭✭✭Hubertj


    Assetbacked wrote: »
    I was just looking at these places again this morning and it shows that the nearly doubling of rental supply since 15 March is definitely a factor in rent drops;

    The D4 cottage and Goatstown house are now gone but all the others are still available.

    The Clontarf house has dropped its rent again to 1950 (from 2500 since first listed).

    The Eblana Villas place has dropped another 100 off its asking rental price.

    No price drops on the others - I'm surprised the Ringsend place is still available considering it is across the road from Google or maybe entirely unsurprised considering it is across the road from Google!

    From a review of my Daft search (max rent 2300 + houses + Dublin city) for new properties to highlight (one thing I note is that there are a lot of places available to rent - it is definitely a renter's market right now);

    https://www.daft.ie/dublin/houses-for-rent/ranelagh/9-athlumney-villas-ranelagh-ranelagh-dublin-2039649/ first listed 12 June asking 2200 rent, still available and now asking 2100

    https://www.daft.ie/dublin/houses-for-rent/dublin-2/eblana-villas-grand-canal-street-lower-dublin-2-dublin-2044754/ another Eblanas Villas house in Dublin 2, first listed a month ago asking 2000, now asking 1875

    https://www.daft.ie/dublin/houses-for-rent/irishtown/8-herbert-place-irishtown-dublin-2039009/ a house in Irishtown first listed in mid-June asking 2240, now looking for 2000

    https://www.daft.ie/dublin/houses-for-rent/stoneybatter/5-norseman-place-stoneybatter-dublin-2047173/ Stoneybatter, first listed 4th July asking for 2000, now 1900

    https://www.daft.ie/dublin/houses-for-rent/dublin-4/leeson-court-leeson-street-upper-dublin-4-dublin-2040333/ Leeson St. An airbnb which started life on Daft asking 2250 at the end of June, now 1900 but it's only one bedroom so, for me, still ambitious

    The other thing to consider which I think is a factor - Travel restrictions and a big backlog processing Visas. I work for a large MNC. We are re-shoring 55 jobs from India. OF that we are waiting on about 30 visa applications to be processed and then we need to get them to IReland etc. Offices are in Dublin. I doubt that is a 1 off.....


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    #997
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    ebayissues wrote: »
    Has anyone here sucessfully asked for a rent reduction?

    My yearly increase of 4% is due to come in once the freeze ends in 2 days time. I despise my agent and am browsing Daft everyday. As soon, as I see something comparative for similar money I'll be gone. I had to tell her about the rent freeze, she hadn't heard about it and was giving out that I hadn't paid the increased rent from May.

    I look forward to being in my new place and seeing my current place empty for months.


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    #998
    jon1981
    Registered Users Posts: 4,359 ✭✭✭jon1981


    Overseas investors still believe there's gold to be found in the rental game here in Ireland.

    https://www.irishtimes.com/business/commercial-property/german-investor-pays-145m-for-dublin-residential-rental-portfolio-1.4315657?mode=amp


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    #999
    PommieBast
    Registered Users Posts: 2,575 ✭✭✭PommieBast


    Assetbacked wrote: »
    I was just looking at these places again this morning and it shows that the nearly doubling of rental supply since 15 March is definitely a factor in rent drops;
    Lot of the big drops seem to be former STLs who were asking far above the market rate in the first place. Having said that starting to see some central places breaching the €2000/month floor in significant numbers.


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    #1000
    Blut2
    Registered Users Posts: 2,907 ✭✭✭Blut2


    brisan wrote: »
    A lot of landlords on the eviction ban extended thread are saying that they are better off leaving the property empty as tenants have too many rights and the rules are skewed in the tenants favour

    The rights/rules aren't going to get any more pro-landlord while huge chunks of the economy are still shut down, and hundreds of thousands of renters are jobless. So those landlords will be leaving their property empty indefinitely...

    I'm not sure how long that will last. I'd imagine after 6, or 9, or 12 months of having no rental income their moral stand will collapse and reality will kick in.


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    #1001
    Hubertj
    Registered Users Posts: 2,000 ✭✭✭Hubertj


    Blut2 wrote: »
    The rights/rules aren't going to get any more pro-landlord while huge chunks of the economy are still shut down, and hundreds of thousands of renters are jobless. So those landlords will be leaving their property empty indefinitely...

    I'm not sure how long that will last. I'd imagine after 6, or 9, or 12 months of having no rental income their moral stand will collapse and reality will kick in.

    i don't see it as a moral stand, i would consider it a business decision. To me, it looks like there is a lot of uncertainty around letting at present - laws and regulations constantly changing. I think this significantly adds to the risk of letting a property - you always have the risk of a tenant not paying rent but everything else on top of that is making landlords re-assess.


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    #1002
    JimmyVik
    Registered Users Posts: 5,368 ✭✭✭JimmyVik


    Hubertj wrote: »
    The other thing to consider which I think is a factor - Travel restrictions and a big backlog processing Visas. I work for a large MNC. We are re-shoring 55 jobs from India. OF that we are waiting on about 30 visa applications to be processed and then we need to get them to IReland etc. Offices are in Dublin. I doubt that is a 1 off.....


    Everyone in my company who left Dublin is expected back to Dublin in the next month or so. They are all praying for a second lockdown so they dont have to come back :)


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    #1003
    JimmyVik
    Registered Users Posts: 5,368 ✭✭✭JimmyVik


    Blut2 wrote: »
    The rights/rules aren't going to get any more pro-landlord while huge chunks of the economy are still shut down, and hundreds of thousands of renters are jobless. So those landlords will be leaving their property empty indefinitely...

    I'm not sure how long that will last. I'd imagine after 6, or 9, or 12 months of having no rental income their moral stand will collapse and reality will kick in.


    I think a huge percentage are waiting to give notice now and just sell.


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    #1004
    polaco
    Registered Users Posts: 58 ✭✭polaco


    Blut2 wrote: »
    For some of those properties still on the market empty now approaching 2 months they really need some much more aggressive price drops. Better to get someone in ASAP, the market is only going to get worse over the next 6 months. The longer they wait to drop the price the more they'll have to drop it eventually (and the more months rent they'll forgo in the meantime).

    According to property agents demand is still very high and people are willing to pay 2k for 2 bed apartments. I went for viewing last week 3-bed house https://www.daft.ie/dublin/houses-for-rent/rathfarnham/type-b-whitepines-south-stocking-avenue-rathfarnham-dublin-2050617/
    2350e per month few couples came mainly indian people. I asked agent if there is any price reduction on this house he says from 20 houses he has at the moment 16 are gone already


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    #1005
    cameramonkey
    Closed Accounts Posts: 3,220 ✭✭✭cameramonkey


    brisan wrote: »
    A lot of landlords on the eviction ban extended thread are saying that they are better off leaving the property empty as tenants have too many rights and the rules are skewed in the tenants favour


    Landlords say lots of things. One month they are dependent on high rents to pay their mortgages and they will go under if they have to accept less, the next month they can leave the property empty with no rent coming in and they will be better off.


    The landlords had a good few years where they made great money , they must now realise that those days are over for a while and rents will be dropping. Like all bushiness they need to cut their cloth.

    They have been saying for years that its all about supply and demand, now there is over supply and less demand, it is obvious which way the market is going.


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    #1006
    Blut2
    Registered Users Posts: 2,907 ✭✭✭Blut2


    Hubertj wrote: »
    i don't see it as a moral stand, i would consider it a business decision. To me, it looks like there is a lot of uncertainty around letting at present - laws and regulations constantly changing. I think this significantly adds to the risk of letting a property - you always have the risk of a tenant not paying rent but everything else on top of that is making landlords re-assess.

    As a moral stand you could argue it has some logic/justification, though. Even if its not going to achieve anything. As a business decision its extremely stupid.

    To let an income generating asset sit idle for an indefinite lengthy period of time to come, possibly years, is not good business. Whatever about the risks associated with renting it out - those are still only minimal. The vast vast majority of tenants in Ireland are still OK. But if the property sits vacant its guaranteed 0 income.

    And theres no prospect of a landlord friendly government entering power in Ireland in 3 months, or even 12 months, or 36 months like. Things are not going to get more pro-landlord. If anything they're going to get significantly more pro-tenant as the economic situation worsens.

    And with Sinn Fein now the largest party in opposition, the leader of the opposition, and the bookies favourite to win the most seats in the next election... The medium/long-term outlook is even worse for landlords rights, if anything.

    The only two viable options from a business point of view are either suck up the new stricter regulations, drop the rental price and get tenants in who're actually paying. Or else just sell up and get out of the market entirely. Holding the property and keeping it vacant, in the hope of more pro-landlord regulations coming in, is somewhere between naive and idiotic.
    polaco wrote: »
    According to property agents demand is still very high and people are willing to pay 2k for 2 bed apartments. I went for viewing last week 3-bed house https://www.daft.ie/dublin/houses-for-rent/rathfarnham/type-b-whitepines-south-stocking-avenue-rathfarnham-dublin-2050617/
    2350e per month few couples came mainly indian people. I asked agent if there is any price reduction on this house he says from 20 houses he has at the moment 16 are gone already

    The property agents are lying to you. The verifiable figures show both a rapid increase in the volume of availability properties, and a strong decline in the rental prices for them, this year:

    https://bl.ocks.org/pinsterdev/raw/234b4a5310a14a32e080/?s=volume


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    #1007
    cameramonkey
    Closed Accounts Posts: 3,220 ✭✭✭cameramonkey


    Hubertj wrote: »
    i don't see it as a moral stand, i would consider it a business decision. To me, it looks like there is a lot of uncertainty around letting at present - laws and regulations constantly changing. I think this significantly adds to the risk of letting a property - you always have the risk of a tenant not paying rent but everything else on top of that is making landlords re-assess.


    It is obvious that any business will re-assess in these times. The market has changed . There is less demand and more supply. The vast majority of tenants pay their rent on time in full. The no eviction thing is only temporary the oversupply and lack of tenants will be more short to medium term. the lack of students from Ireland and abroad will see an even bigger pressure coming on landlords to lower prices. It is a sort of win win situation for the economy except for landlords, builders and property speculators.


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    #1008
    PommieBast
    Registered Users Posts: 2,575 ✭✭✭PommieBast


    polaco wrote: »
    According to property agents demand is still very high and people are willing to pay 2k for 2 bed apartments.
    Six or so months ago people were willing to pay €2k for one bedroom apartments..


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    #1009
    Smouse156
    Registered Users Posts: 529 ✭✭✭Smouse156


    jon1981 wrote: »
    Overseas investors still believe there's gold to be found in the rental game here in Ireland.

    https://www.irishtimes.com/business/commercial-property/german-investor-pays-145m-for-dublin-residential-rental-portfolio-1.4315657?mode=amp

    With so many TDs as landlords, the landlord party (Fine Gael) in Govt and Ireland’s historical policy of welcoming foreigners to screw our people it’s hardly surprising! They’ll probably ban the local, tax paying, legitimate landlords next so the Vultures can clean up


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    #1010
    JimmyVik
    Registered Users Posts: 5,368 ✭✭✭JimmyVik


    Smouse156 wrote: »
    With so many TDs as landlords, the landlord party (Fine Gael) in Govt and Ireland’s historical policy of welcoming foreigners to screw our people it’s hardly surprising! They’ll probably ban the local, tax paying, legitimate landlords next so the Vultures can clean up




    They are already several years into their plan to drive them out


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    #1011
    eleventh
    Closed Accounts Posts: 436 ✭✭eleventh


    brisan wrote: »
    A lot of landlords on the eviction ban extended thread are saying that they are better off leaving the property empty as tenants have too many rights and the rules are skewed in the tenants favour
    The vast majority of tenants are honest. It may be a bit less than in the past, but still - it's a tiny minority that cause trouble.

    Most tenants aren't interested in overholding etc. If they can't afford the rent, they move.

    Landlords should take responsiblity as well for their decisions. If they have bad experiences then look to fix their process rather than conclude that all tenants are bad, not worth the risk etc, which is not the case.


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    #1012
    eleventh
    Closed Accounts Posts: 436 ✭✭eleventh


    jon1981 wrote: »
    Overseas investors still believe there's gold to be found in the rental game here in Ireland.

    https://www.irishtimes.com/business/commercial-property/german-investor-pays-145m-for-dublin-residential-rental-portfolio-1.4315657?mode=amp
    Sad to see this.


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    #1013
    Hubertj
    Registered Users Posts: 2,000 ✭✭✭Hubertj


    cameramonkey wrote: »
    It is obvious that any business will re-assess in these times. The market has changed . There is less demand and more supply. The vast majority of tenants pay their rent on time in full. The no eviction thing is only temporary the oversupply and lack of tenants will be more short to medium term. the lack of students from Ireland and abroad will see an even bigger pressure coming on landlords to lower prices. It is a sort of win win situation for the economy except for landlords, builders and property speculators.

    i agree with you - my point is that there has been a lot of changes to laws / regs the last few months. If i was a landlord, thankfully I'm not, I would prefer some regulatory stability and not constant changes.


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    #1014
    beggars_bush
    Registered Users Posts: 4,343 ✭✭✭beggars_bush


    You'd wonder where small landlords will then invest their money?


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    #1015
    Smouse156
    Registered Users Posts: 529 ✭✭✭Smouse156


    eleventh wrote: »
    Sad to see this.

    They can’t lose! The Govt is offering them guaranteed rental slightly below market rates on an FRI basis over a long period. They’re getting multiples of Irish Govt bonds. I’m surprised the interest isn’t higher given the current state of the global bond market


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    #1016
    Assetbacked
    Closed Accounts Posts: 2,969 ✭✭✭Assetbacked


    Smouse156 wrote: »
    They can’t lose! The Govt is offering them guaranteed rental slightly below market rates on an FRI basis over a long period. They’re getting multiples of Irish Govt bonds. I’m surprised the interest isn’t higher given the current state of the global bond market

    This government in its first 2 years will not change too much in the housing market but in the following 2 years they will start making the improvements as the election will be on their minds. This may be too late.

    I mean, I don't want SF, but unless the government can get rents to drop around 40% from their current averages, it's hard to see the under 40s age group who are renting not voting for SF. I say 40% as I know so many people on decent salaries that would require rents to drop massively, not just by 15/20%, in order for them not to vote for a viable alternative to FF/FG.

    The best outcome for Ireland's rental crisis would be a global recession I think as I don't see FF and FG changing much in the next 2-4 years. Of course, a global recession will have negative impacts to those that would benefit from a rental market collapse, but there are winners and losers in the the economy regardless of whether it is or isn't in recession. The last 7 years of hyper growth has come at a massive cost to the non-home owning sector of society so there would not be an appetite to return to similar pre-Covid GDP measured levels of prosperity among certain people.


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    #1017
    Marius34
    Registered Users Posts: 1,173 ✭✭✭Marius34


    Assetbacked wrote: »
    This government in its first 2 years will not change too much in the housing market but in the following 2 years they will start making the improvements as the election will be on their minds. This may be too late.

    I mean, I don't want SF, but unless the government can get rents to drop around 40% from their current averages, it's hard to see the under 40s age group who are renting not voting for SF. I say 40% as I know so many people on decent salaries that would require rents to drop massively, not just by 15/20%, in order for them not to vote for a viable alternative to FF/FG.

    The best outcome for Ireland's rental crisis would be a global recession I think as I don't see FF and FG changing much in the next 2-4 years. Of course, a global recession will have negative impacts to those that would benefit from a rental market collapse, but there are winners and losers in the the economy regardless of whether it is or isn't in recession. The last 7 years of hyper growth has come at a massive cost to the non-home owning sector of society so there would not be an appetite to return to similar pre-Covid GDP measured levels of prosperity among certain people.

    I don't think it's the best outcome, but I'm confident we are in Global Recession for quite some time already:
    https://en.wikipedia.org/wiki/COVID-19_recession
    "The COVID-19 recession, also known as the coronavirus recession, the Great Shutdown, the Great Lockdown, or the Crisis of 2020 is a major global recession which arose as an economic consequence of the ongoing COVID-19 pandemic. The first major sign of the recession was the 2020 stock market crash on 20 February, and the International Monetary Fund (IMF) reported on 14 April that all of the G7 nations had already entered or were entering into a "deep recession""


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    #1018
    Hubertj
    Registered Users Posts: 2,000 ✭✭✭Hubertj


    Assetbacked wrote: »
    This government in its first 2 years will not change too much in the housing market but in the following 2 years they will start making the improvements as the election will be on their minds. This may be too late.

    I mean, I don't want SF, but unless the government can get rents to drop around 40% from their current averages, it's hard to see the under 40s age group who are renting not voting for SF. I say 40% as I know so many people on decent salaries that would require rents to drop massively, not just by 15/20%, in order for them not to vote for a viable alternative to FF/FG.

    The best outcome for Ireland's rental crisis would be a global recession I think as I don't see FF and FG changing much in the next 2-4 years. Of course, a global recession will have negative impacts to those that would benefit from a rental market collapse, but there are winners and losers in the the economy regardless of whether it is or isn't in recession. The last 7 years of hyper growth has come at a massive cost to the non-home owning sector of society so there would not be an appetite to return to similar pre-Covid GDP measured levels of prosperity among certain people.

    realistically what can they achieve in the first 2 years? They cant magic up a load of social and affordable housing. Within 2 years i would expect to see an increase in building of this type. What i would also expect is a more detailed plan instead of the nonsense 100k units in lifetime of govenrment.
    For example, the recently announced project in shankill will deliver hundreds of units. I think that is a better message for the public and demoinstrates actual progress as it is real and not a headline or some socialist boll*xology in a poxy book.

    IF SF were in government, what will they achieve in the first 2 years? Nothing because it would take them time to deliver a plan. They cant just legislate to decrease rents by 40%. They would quickly learn how bad public servants are at their job and would be found out with all their punch and judy politics.

    No matter who is in government, i think a 10 year + plan for social and affordable housing is required. How that can be achieved is another matter.


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    #1019
    Assetbacked
    Closed Accounts Posts: 2,969 ✭✭✭Assetbacked


    Hubertj wrote: »
    realistically what can they achieve in the first 2 years? They cant magic up a load of social and affordable housing. Within 2 years i would expect to see an increase in building of this type. What i would also expect is a more detailed plan instead of the nonsense 100k units in lifetime of govenrment.
    For example, the recently announced project in shankill will deliver hundreds of units. I think that is a better message for the public and demoinstrates actual progress as it is real and not a headline or some socialist boll*xology in a poxy book.

    IF SF were in government, what will they achieve in the first 2 years? Nothing because it would take them time to deliver a plan. They cant just legislate to decrease rents by 40%. They would quickly learn how bad public servants are at their job and would be found out with all their punch and judy politics.

    No matter who is in government, i think a 10 year + plan for social and affordable housing is required. How that can be achieved is another matter.

    One big dent that could be made is if the government committed to delivering the social and affordable housing itself this would be a big saver to the exchequer instead of paying out rents to landlords themselves. At least SF are committed to that in their manifesto anyway.

    It would also stop the State competing with tenants in the rental market. This policy of directly competing in a tight market with private tenants is a ticking time bomb as rents go higher, the State has to pay more and more while private tenants see less and less benefit to working themselves. Even more so is it an issue when these landlords are instituonals with foreign shareholders which means no tax is paid on the rent. Imagine, taxpayers money being funnelled by the State out of the country with no exit tax. Rental yields are propping up the house price market too,due to these types of articifical rental market inflation practices. There is a gut feeling I have that there is some type of housing market bubble again, despite being more optimistic in my posts about the rental sector being more exposed and being separate to the purchasing market, the practices in the rental market are so outragoue that it feels there is a massive overstatement regarding the booming nature of the rental marlet. Covid is a stress test, as is Brexit, and there will be more like for example OECD global tax alignment hurting our MNC activities, but I do feel there is something there which could pop, not befitting of "soft landing" talk.


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    #1020
    Assetbacked
    Closed Accounts Posts: 2,969 ✭✭✭Assetbacked


    Marius34 wrote: »
    I don't think it's the best outcome, but I'm confident we are in Global Recession for quite some time already:
    https://en.wikipedia.org/wiki/COVID-19_recession
    "The COVID-19 recession, also known as the coronavirus recession, the Great Shutdown, the Great Lockdown, or the Crisis of 2020 is a major global recession which arose as an economic consequence of the ongoing COVID-19 pandemic. The first major sign of the recession was the 2020 stock market crash on 20 February, and the International Monetary Fund (IMF) reported on 14 April that all of the G7 nations had already entered or were entering into a "deep recession""

    Viewing the rental market in isolation, it is a good thing but my point is that it will do more to improve the rental market than the government can.

    As for the recession point, central banks are propping everything up and the covid crisis is still going strong so we haven't even started the fallout from covid. The airlines and job cuts so far were from over extended industries or those particularly vulnerable to covid shocks such as travel and tourism. But I don't see how, for example, advertisement budgets won't be cut in the next few months, hiring plans, salary rises etc won't be put on hold as companies try to recoup losses and also figure out where savings can be made. Consumers are not spending in the local economy so long as social distancing restrictions apply which could be until next year and that will leave a massive budget deficit as the government will have to underwrite the economy for so long as they insist on covid restrictions being in place.

    For the record, I don't believe there is such thing as a covid 2nd wave (but more of a return of spikes) or that it will even require a specific vaccine in a few months (this work will assist with future coronaviruses though) The reason being that the data shows this virus barely effects the under 65s age group and is negligible to the under 45s age group. The covid discussion is for a separate place but I am contextualising this statement on the economy, that I believe we will have a quicker economic lift than people might think, likely before the end of the year, which means the dire economic outlook may subside come October and there could be a bit of a V-shaped jump in the economy.


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    #1021
    perfectkama
    Registered Users Posts: 106 ✭✭perfectkama


    you know where i can get some good for my rollies


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