Key Post PRTB & Housing Agency report advises against rent control

[Bronte]

This suggests that landlords who accept rent supplement tenants \ engage in their partnership scheme are likely to face significantly higher servicing/repair costs, so the incentives offered would have to be sufficient to take that into account?

Which is why many landlords refuse social welfare tenants. I never write I accept them, but I do, and I've in general had no problems, the most serious problem was however social welfare and I am very careful to vet.

 

[Bronte]

Why do councils face higher service repair costs ? is it because they are bad managers or because they have more difficult tenants.

Not sure about your experience but I find Irish tenants to be the most dirty and untidy. Was amazed years ago when I started getting Germans or French and how they behaved, then the poles etc are brilliant, will do repairs, paint etc if I supply the materials.

I think social welfare, some of them, have a sense of entitlement and think it's ok to call you out to change a lightbulb.

 

[Bronte]

"Rent certainty" is the stupidest slogan I have ever heard. What's next, "bread price certainty" or "oil price certainty"?

The dogs in the street know price controls don't work in combating inflation.

Increase the supply of homes and stop messing around.

Exactly, and still no real significant building, this problem is going to get worse. In addition I see many dilapidated buildings perfect for renovation, but I've done the sums and with the taxes it is not justified.

Then I'd love to upgrade existing stock, no incentive there either. And with the way capital appreciation has hone another disincentive. Why put more in then.

 

[elcato]

Increase the supply of homes and stop messing around.

Increase the supply of landlords as well and stop messing around. Noonan mentioned the Bacon report i.e. stop tax relief on interest which for a year stopped house prices but pushed up rents because landlords just legged it. He didn't think that by bring back the full rent relief amongst other things would actually remedy the current problem for the time being at least. If prices rise a bit more how many landlords are we gonna lose as they leg it from the burden ?

 

[Bronte]

Elcato my accountant this year told me all his clients in NE are just waiting to be evens to sell up. Big loss making headache for most of them and they can't wait to get out.

My sibling, not in NE is so vexed that I'm not allowed discuss taxes on rent!

 

[Dermot]

There was an article in the Irish Independent recently where an analysis of the properties that they had sold over a period: 33% were belonging to Landlords and that 15% of their sales were to landlords. This would strongly indicate that more landlords are leaving the market than joining it.

What is the return on the current price of a three bed semi/fully furnished in your average decent estate?

 

[Sarenco]

What is the return on the current price of a three bed semi/fully furnished in your average decent estate?

Depends where you're talking about.

DAFT has the average gross yield for a 3 bed house at 3.9% in South County Dublin and 5.9% in North County Dublin for example.

 

[Purple]

"Rent certainty" is the stupidest slogan I have ever heard. What's next, "bread price certainty" or "oil price certainty"?

The dogs in the street know price controls don't work in combating inflation.

Increase the supply of homes and stop messing around.

Exactly; this is a supply side problem and will only be solved there. The root causes are a banking sector that is still not fit for purpose and a construction sector that is an utter disaster. They are;

• Not capitalised so can't fund their own projects
• Short of skilled labour so can't complete projects
• Generally incompetent as a sector and so grossly inefficient and so expensive. The reason house building costs are high is because the construction sector is grossly inefficient and these jokers think the solution is for the state to subsidize them by lowering taxes and charges rather than just get their act together and make the process more efficient.

 

[Dermot]

DAFT has the average gross yield for a 3 bed house at 3.9% in South County Dublin and 5.9% in North County Dublin for example.

It is very difficult to justify purchasing a property to rent out at this sort of return given that you will have outgoings which will reduce this to 2.6% and 4% approximately and pay tax on this after that. Equally you might even think whether it is worth remaining in the business when you take the hassle that goes with it.
I would like to know how does Kelly & the Government think the "rent control" measure that they are bringing in will make this better for Tenants when the issue is a supply issue. What is it that I do not understand?.

 

[Sarenco]

Absolutely agree Dermot.

It's simply not worth the risk and hassle of operating a concentrated rental business that only produces a net yield of 3-4%. By way of comparison, the FTSE100 is currently yielding 3.8% and won't ring you up on Christmas Eve to tell you the boiler has packed in!

The whole idea of price fixing is bonkers.

 

[Dermot]

and won't ring you up on Christmas Eve to tell you the boiler has packed in!

That would appear bad but call a similar type call during the freeze up 5 or so years ago as I was just sitting down to Xmas dinner. Really do not have enough expertise in shares sector etc but might treat myself to a book on same for Christmas.

I cannot understand the logic other than Kelly going on an ego trip. He should be careful as the ground is never too far away.