# Not a good time to be a landlord



## Bronte (6 Jan 2012)

With all the hype in the recent budget one would think that property owners were being incentivised to invest in property when in actuality the exact opposite is the case.  

Landlords are being hit with the NPPR €200, household charge €100, interest reduction to 75%, universal social charge and social welfare rents being reduced.  How do all those charges encourage investors? 

In addition in order to purchase some banks will only give 50% loan to value, others max 75% and they won't advance any monies on apartments outside the large cities and for other types it is exceedingly difficult to get any money.  

Going foward what will this mean for the property market?


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## T McGibney (6 Jan 2012)

1. Shortages of rental accommodation
2. Less incentive to rent unused properties
3. Less incentive to refurbish existing properties
4. More dereliction
5. Eventual rises in rents


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## RMCF (6 Jan 2012)

I'm in my 1st year of being a LL, and to be honest I am starting to seriously think about getting shot of the place and clearing the mortgage on it.

God knows where all these taxes are going to end up.


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## Fiskar (6 Jan 2012)

T McGibney said:


> 1. Shortages of rental accommodation
> 2. Less incentive to rent unused properties
> 3. Less incentive to refurbish existing properties
> 4. More dereliction
> 5. Eventual rises in rents


 
Agree with you on this, am trying to get to a situation where I can decide the rent and not the tenant. That means leaving the property idle. 
These taxes are eating into to the yield and making being a LL not worthwhile.


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## round1 (6 Jan 2012)

There will be no shortage of rental accommodation once NAMA starts to release its large portfolio on the market. It has already started to make it available for social housing.


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## Capricorn 1 (7 Jan 2012)

+ 1. It may indeed come to the point where it is not cost effective to continue lettind and that point is fast approaching.


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## Capricorn 1 (7 Jan 2012)

Fiskar said:


> Agree with you on this, am trying to get to a situation where I can decide the rent and not the tenant. That means leaving the property idle.
> These taxes are eating into to the yield and making being a LL not worthwhile.


 
+1. There comes a point when it will not be worthwhile letting and that point is fast approaching.


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## Knuttell (7 Jan 2012)

Capricorn 1 said:


> +1. There comes a point when it will not be worthwhile letting and that point is fast approaching.



Its been happening in slow motion since about 2001,it has gathered momentum over the last few years and this will accelerate from now on,the only ones that have any chance of pulling through are the professional Landlords who spent considerable time researching and examining yields before purchasing in a solid central City location and would not have taken part in the buying frenzy from 1999-2000 onward.

Those that just threw 300k at a one bedder in Termonfeckin are toast.

A lot will depend on NAMA however give it 3 years or so there will be a shortage of decent properties in big Cities and there will be a newer breed of Landlord,those that buy in 18 months will pick up rentals for nowt and will have a similar approach to the old style landlords of the 1970s 80s 90s ie treating it like a business as opposed to the majority of current amateurs.


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## AlbacoreA (8 Jan 2012)

round1 said:


> There will be no shortage of rental accommodation once NAMA starts to release its large portfolio on the market. It has already started to make it available for social housing.



True. 

Still if you have a property in the right location, in the right condition, and you bought very early, it will always make money.

That said unless you long stay tenants, who look after a place, being a LL can be a lot of hassle, and work.


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