Thinking of selling a rental property? You should probably get a move on...
- Thread starter Sarenco
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I don't the reckon the sages are aware of how distorted the Irish rental market is.
resurrecting this thread..
How likely do you think this bill will come in?
I have 1 rental property, where the tenants moved in (thk god great tenants) in 2018, Havent put up the rent since, prob 600 below market rent ATM.. My thinking is - good tenants are worth their weight in gold..
would like to keep as they are good tenants, and would be a great fund to have. I have no idea where they would go if I did seel, as they would be paying alot more every year, which Im not sure if they could afford.. anyway, its a business so I should not be thinking this way
Im seriously thinking of just selling up, this is a retirement fund, but the way things are going I might not be able to sell, and who knows what other restrictions would be in place by then?
Last think I need when retire (in abt 15 years) is the hassle of tenants!
How likely do you think this bill will come in?
I have 1 rental property, where the tenants moved in (thk god great tenants) in 2018, Havent put up the rent since, prob 600 below market rent ATM.. My thinking is - good tenants are worth their weight in gold..
would like to keep as they are good tenants, and would be a great fund to have. I have no idea where they would go if I did seel, as they would be paying alot more every year, which Im not sure if they could afford.. anyway, its a business so I should not be thinking this way
Im seriously thinking of just selling up, this is a retirement fund, but the way things are going I might not be able to sell, and who knows what other restrictions would be in place by then?
Last think I need when retire (in abt 15 years) is the hassle of tenants!
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Debateable over a 15 year period. Its likely some more radical govt could emerge at some point OR the housing crisis just gets so severe property rights of owners are gutted to satisfy those wielding the loudest pitchforks. That said, rental income is a good pension supplement too. All of it boils down to why you entered in the first place, and for an awful lot of people who entered primarily for capital gains over long term rental income, its likely to have been a bumpy ride.
Thanks for the reply, I entered as an investment, my mortgage is low enough that I have a little profit after paying tax and mortgage, and then the lump sum of selling when I retire - ya cant go wrong..
But now it looks that I wont be able to do that, and will be left having to deal with a rental property when I retire, which I really dont want..
RonnieShinbal88
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I sold a rental over the risk of a tenant not paying for up to two years before you can get them evicted and over RPZs, where over time the rent could fall behind inflation as rent increases are capped at max 2% in RPZs, that is then compounded if you have to sell to another landlord due to a sitting tenant having the right to remain forever (were the law to change there). The price then will be determined by the low rent. I also didn't like the risk of random large expenses potentially coming in around maintenance.
It sounds like those might be less of an issue for you if you have tenants you trust and aren't in an RPZ. Something to bear in mind is that when you retire, for the nice lump sum, you still have to sell the place! That can take a long time and can be a lot of hassle, that was certainly my experience, even with a relatively in demand property location. I wouldn't be to keen to go through it all again when I'm retired and looking for an easy life.
It sounds like those might be less of an issue for you if you have tenants you trust and aren't in an RPZ. Something to bear in mind is that when you retire, for the nice lump sum, you still have to sell the place! That can take a long time and can be a lot of hassle, that was certainly my experience, even with a relatively in demand property location. I wouldn't be to keen to go through it all again when I'm retired and looking for an easy life.
Well mine is RPZ as well 
Not being able to sell is bad enough, but as the rent I charge is soo low, I would have to take a considerable cut if I was to sell to another landlord..
As Ireland is skewed in anything the government do, I think I will have to sell up.. will wait til new year to break the news to the tenants, let them have Xmas..
Do ppl not see the government are making things worse, all these regs that are in favour of tenants just means the small landlords are selling up making the number of properties avail less and increasing rent.. do tenants not see this
Not being able to sell is bad enough, but as the rent I charge is soo low, I would have to take a considerable cut if I was to sell to another landlord..
As Ireland is skewed in anything the government do, I think I will have to sell up.. will wait til new year to break the news to the tenants, let them have Xmas..
Do ppl not see the government are making things worse, all these regs that are in favour of tenants just means the small landlords are selling up making the number of properties avail less and increasing rent.. do tenants not see this
And the number of properties available for families to buy and live in has increased. Swings and roundabouts?Do ppl not see the government are making things worse, all these regs that are in favour of tenants just means the small landlords are selling up making the number of properties avail less and increasing rent.. do tenants not see this
But landlords can exercise their periodic right to inspect - and find this and other issues.
There's a shortage of new homes being built, and we're all here rearranging the shortfall between rental and buying with the swings and roundabouts.
My point was that the net effect is zero and not negative as some people seem to think.
Sorry, I was agreeing with you. A first time buyer purchasing a house that was previously is one less household in the rental market, but one less property available for rent. Net effect of zero on the rental market.
2 things though
- it's a cheap rental that disappears
- the fact that it was a cheap rental doesn't mean that it will be a cheap property to buy. On an individual basis, it doesn't help the people who can't reach the property ladder.
Dr Strangelove
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It’s not in a dynamic context!
Supply of new builds is not completely inelastic. More people buying and less people selling existing houses leads to more building of new houses. This is what everyone seems to want.
charlie007
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It might indeed be a zero sum game ( I'm not sure long term ) but the smaller landlords, that can, are walking away for good.
The institutional landlords have little interest in the lower end of the market.
So the state, who created a large part of the problem with their crazy regulations in the last 8 years, are going to have to stump up billions to try and alleviate it.
But, no bother, they can still blame it all on the greedy landlords.
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RonnieShinbal88
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One area where the zero sum argument falls down is where people moving abroad temporarily for work are now leaving their place empty, and there are various other scenarios where people would now rather leave a place empty (to get around RPZs for example) due to the highly skewed risks for landlords. We have temporary demand where people move here for a year or two for work and ideally this would be partially matched with temporary rentals of people moving abroad, but now you are taking these temporary rentals off the table so they will end up hogging rentals more suited to long term renters.
Tenants that have to leave when a small landlord sells are also going to be facing much higher rents, low rent controlled apartments are much less likely to appear on the market. If they are budget limited then there are less available units net for them, that isn't zero sum.
Not all sold rentals are bought by families, we have single people buying them too, the occupancy of rented versus owned houses is higher. For example, a 4 bedroom rented house might commonly have four single people sharing and it's sold to a couple that were renting a one bed apartment. The four evicted tenants can't move into the one bed - that isn't zero sum.
Disclosure: I am not a landlord! (anymore)
Tenants that have to leave when a small landlord sells are also going to be facing much higher rents, low rent controlled apartments are much less likely to appear on the market. If they are budget limited then there are less available units net for them, that isn't zero sum.
Not all sold rentals are bought by families, we have single people buying them too, the occupancy of rented versus owned houses is higher. For example, a 4 bedroom rented house might commonly have four single people sharing and it's sold to a couple that were renting a one bed apartment. The four evicted tenants can't move into the one bed - that isn't zero sum.
Disclosure: I am not a landlord! (anymore)
Plus people living with parents or returing from Dubai with savings buy ex-rentals. No rental is freed up when that happens.
Agree, alot of reasons why a rental would not come into the hands of a family
Regardless, their is always going to be people who rent, and the government has made a total sh*t of the rental market..
So whats the likelyhood of this law coming in, and if it could be reversed say in 15 years (retirement)?
Regardless, their is always going to be people who rent, and the government has made a total sh*t of the rental market..
So whats the likelyhood of this law coming in, and if it could be reversed say in 15 years (retirement)?
I have just been over to my ex rental to turn on the taps and heat for a while as it is a frosty morning. So sad to see it empty and cold but no way I am renting it again with the risk of not being able to get it back. It's not suitable for my family's needs at the moment, but I plan to retire to it. I should be able to make it available for a family but I can't risk it. Can no one in government see this problem?