The shortage in Ireland of rental properties, (or more importantly perspective landlords) has become quite obvious.
The latest daft report is showing rental availability at its lowest level, 2700 properties as of May 1st 2019 compared to 4,400 in 2007 and average rent at an all time high of €1,366.
Average rents (on Daft) being at all time highs is a red herring, because it is only a small sample of rental properties and does not reflect the vast majority of landlords stuck at below market average rents due to rent pressure zones.
This shortage is always seen exclusively as a supply issue, but surely the government must realize that even if they are built, their must be an incentive for a perspective landlord to purchase them and that their constant interference in the rental market has only served to alienate current and perspective landlords.
Myself and many other landlords out there who bought to rent between 7th December 2011 and 31st December 2014, can now sell with no capital gains penalty.
(Initially the requirement was to hold the property for 7 years, but this was reduced to 4 years).
I am trying to understand how the minister who is dealing with a severe rental crisis due to a continued reduction in supply has not put 2 and 2, together and figured out that it is government policies that is pushing landlords out of this market.
I currently have a very appealing financial incentive to sell now with no capital gains tax to pay.
I and many others are no longer in negative equity, so I will make a profit rather than a loss by selling.
I will no longer have to worry about accepting rents way below market average, or government interference on how much mortgage interest I can claim against tax.
Druconian rental inspections (for HAP tenants only) is another headache.
As it has been and always will be politically unacceptable to side with landlords over tenants, any issues regarding non payment of rent or damage to rental properties will usually be awarded in favor of the tenant. Or at least that’s the perception amongst landlords.
And after all this time and effort, to then loose 52% to tax and LPT and RTB fees on top....
The minister must realise that it is government policy pushing landlords out of this market and aggravating this crisis.
The latest daft report is showing rental availability at its lowest level, 2700 properties as of May 1st 2019 compared to 4,400 in 2007 and average rent at an all time high of €1,366.
Average rents (on Daft) being at all time highs is a red herring, because it is only a small sample of rental properties and does not reflect the vast majority of landlords stuck at below market average rents due to rent pressure zones.
This shortage is always seen exclusively as a supply issue, but surely the government must realize that even if they are built, their must be an incentive for a perspective landlord to purchase them and that their constant interference in the rental market has only served to alienate current and perspective landlords.
Myself and many other landlords out there who bought to rent between 7th December 2011 and 31st December 2014, can now sell with no capital gains penalty.
(Initially the requirement was to hold the property for 7 years, but this was reduced to 4 years).
I am trying to understand how the minister who is dealing with a severe rental crisis due to a continued reduction in supply has not put 2 and 2, together and figured out that it is government policies that is pushing landlords out of this market.
I currently have a very appealing financial incentive to sell now with no capital gains tax to pay.
I and many others are no longer in negative equity, so I will make a profit rather than a loss by selling.
I will no longer have to worry about accepting rents way below market average, or government interference on how much mortgage interest I can claim against tax.
Druconian rental inspections (for HAP tenants only) is another headache.
As it has been and always will be politically unacceptable to side with landlords over tenants, any issues regarding non payment of rent or damage to rental properties will usually be awarded in favor of the tenant. Or at least that’s the perception amongst landlords.
And after all this time and effort, to then loose 52% to tax and LPT and RTB fees on top....
The minister must realise that it is government policy pushing landlords out of this market and aggravating this crisis.