Yep, i think rents are going to increase in the short term.Aera i have an interest in the no. of properties on daft for sale has tripled in 3 months and the no. of rental properties has dropped by 20%.A lot of immigrants in the aera involved in the building game though,so in the long term rents will fall.
true, but a lot would be take up by students in September wouldn't they?
Yep, i think rents are going to increase in the short term.Aera i have an interest in the no. of properties on daft for sale has tripled in 3 months and the no. of rental properties has dropped by 20%.A lot of immigrants in the aera involved in the building game though,so in the long term rents will fall.
Do you not think that the increase in supply will keep a downward pressure on rents? I can see why rents could go up short term but long term I think they will reduce in real terms.
Rental supply will increase and rents will fall because:
- Struggling owner cubs will emigrate or move back in with Mammy and Daddy and attempt to rent out their commuter hellhole to avoid selling it
- Vacant property will be pressed into rental service
- Downturn in construction will cause immigrants to leave, chasing better opportunities
- Continued over-supply in the new homes market will ensure that there are plenty of properties sold at ever lower prices supplying the rental market
- Big drop in demographics coming through over the next few years will result in fewer renters/FTB's competing for property to rent or buy
Rental supply will increase and rents will fall because:
- Struggling owner cubs will emigrate or move back in with Mammy and Daddy and attempt to rent out their commuter hellhole to avoid selling it
- Downturn in construction will cause immigrants to leave, chasing better opportunities
- Continued over-supply in the new homes market will ensure that there are plenty of properties sold at ever lower prices supplying the rental market
Don't believe this will happen as, if FTBs are living in their property for less than five years, and subsequently decide to rent out the property, they are liable for stamp duty clawback at investor's rates. In the majority of cases, this would cost them more than annual rental. They would also be liable to CGT on subsequent sale (if later than 12 mths.)
For this reason I believe that rents, in the major cities and towns, will increase, while houses in commuterland will remain empty and fail to sell.
If they have to sell, who's going to buy? FTB's will be holding off, terrified of the collapsing market. Amateur investors might be attracted though, hoping the market has bottomed - increasing rental supply further.
Agreed that rents in major cities and towns will hold up better than cummuterland but will fall nonetheless.
Isn't there meant to be a direct relationship between rent and house prices?
There is meant to be one in every housing market but the Central Bank in its wonderful model of the Irish housing market decided that this fundamental link does not apply in Ireland (on page 8). Their model seems to say (the maths being way beyond me) that it is only interest rates that matter, thus justifying the present bubble. Bunch of geniuses.
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Why so?
The reasons listed above!
What I meant was what is your reason for thinking they will fall in the major cities?
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