What will happen to rents if the housing market collapses?

I would suggest there is a shortage of good quality rental accommodation to let in Cork anyway. I remember when I started college about 15 years ago, there were no custom-built apartment buildings, aside perhaps from some out near the hospital.
During the early to mid 90's a lot of apartments went up near the college and there were some city centre developments as well.
But most rental properties, whether houses or apartments, were targeted at the student market and, well, student accommodation is not necessarily well maintained.
Incidentally, I rent in Germany and I pay less than any of the equivalent properties I see advertised for Cork and that includes heating and waste disposal.
As to whether rental prices would increase or decrease in line with house prices, if investors are buying they probably would prefer to buy a house with a sitting tenant, so just because a housing unit is up for sale does not mean the tenant is bound to be turfed out.
 

Agreed if you convert sterling to the Euro, Dublin is cheaper. However I dont think you can compare rents by simply converting sterling to Euros. I think a better comparrison is to compare rents as a proportion of your income.

The last time I checked (6 months ago) if I was to do the same Job in Dublin as I am in London I'd take a 30% cut in wages as I wouldn’t get the Euro equivalent. In I.T., anyway, 1 pound for 1 euro the wage rates seem to be the same between the two cities, therefore as a proportion on your salary the rents are similiar.
 
Bad things & Stuff in Irish Rental Market make me MAD

WOW! Some of those high rental properties are aimed at the corporate client, however I have never seen such a disgusting four poster bed in all my life. I don't get the "four poster bed" appeal.

Few people if any, realise that the four posters are for a canopy which would keep in the heat (along with surrounding curtins on the bes), whiel also to stop the vermon, RATS pissing, ****ting and generally falling on you as they moved in the rafters above yea, Lovely!

I've posted before but regarding how Irish rents are set is intersting, I believe 1 type of landlord is setting the price while the other is following and in fact making the real killing.

Oldschool landlord class (those that bought in the 80s or something like that or inherited..)

Neo-Landlords, those who got in at varuious point salong the mania upswing.

Now it isthose "NEO-Lords" who are using a very large mortage to purchase the property (secured how, who knows... probably lots of lies to the Bank manager as usual... credit union fiddle for deposit etc etc) and simply using the tenants to service the mortgage, not making anything in real profit that inflation wouldn't be gobbling up.

Now the Old-school landlords (the ones with the big tall hats, usually horse back ) they see what the markets at and just hike it up. They are making in some cases 100% pure profit on rental income no doubts.

So the NEO Lords stand to loose a lot unless they can stay in the market and thus become Old-school who might decide to get out now since they may have been in it for 20-30 years, or pre 95-97.

There are varying degrees of these types of landlords, anything after 95-97 I think is NEO Landlord territory, after 2001 SUPER-NEO-Landlord

So here is the league,

OSL - Oldschool Landlord, Pre 1995
NL - Neo Landlord Post 1995
SNL - Super Neo Landlord Post 2001

I would love to know the proportion that would be in this category, I believe some OSL's are also NL's, having had maybe a family home rented since the 80;s then decided to buy a S23 or S50 and so on... I also think the largest proportion in the table ar the NL's and SNL's since the majority of new builds have been in the last 10 years, almost 500,000 it seems.

Well it look like not will homeowners be caught in the chaos but also those who have decided to also enter the higly unregulated & shady Irish rental market that is possibly the largest black economy in the economy after drugs and one of massive tax non compliance.

Lets look at this Agent related listing from daft,

SAMPLE List (uber prices,)

Marked as "Corporate lettings long and short term" on daft, featured agent.

2 Bed, Monkstown €1500
2 Bed, Ballsbridge €1800
2 Bed, Dun Laoghaire €2000
2 Bed, Hanover Quay €2000
2 Bed, Foxrock €2200
2 Bed, Hanover Quay €2250
2 Bed, Stillorgan €2500
2 Bed, Foxrock €2600
2 Bed, Ballsbridge €2700
2 Bed, Foxrock €4000
2 Bed, Foxrock €4000
3 Bed, Monkstown €2750
3 Bed, Ballsbridge €3500
3 Bed, Ballsbridge €3750
3 Bed, Dun Laoghaire €4000
3 Bed, Ballsbridge €4500
3 Bed, Foxrock €8000
4 Bed, Rathmines €3500
4 Bed, Blackrock €8000
5 Bed, Dun Laoghaire €8000
6 Bed, Ballsbridge €10000

---

Ok I tried to find a smaple list with the more average market prices that us mere mortals would be more concerned with. However this list illustrates the point, the prices are all rounded to the "100". Rather arbitrary, you see it most clearly when you see all the properties listed by once agent, there is little deviation in clasesses, 1 bed all the same price , 2 beds all the same prices....

Price rounding is annoying. I pointed this out also on another thread here I think.

That a lot of agents who mange properties for clients (fools) usually take a fee or sometime to that effect. I know one of the very agents takes the first rent due as a fee, so people are in fact only getting 11 months rental income in the case of in year leases (how this works for four year leases i have no idea).

These guys also engague in the beligerent whitholding of depostis for arrbitrary reason as a matter of policy. I have been there and I am a good tenant, but clean and time vacation is sometimes jsut not enough for these tooks.

Now call me what you want, but would losing 1 month of your rental income to "agents fees" not wipe out any yield?

Seems to me it would if I understand it at all.

Here are the more usual listings

1 BEDS
1 Bed, Terenure €950
2 BEDS
2 Bed, Blessington €900
2 Bed, Tallaght €1150
2 Bed, Bluebell €1200
2 Bed, Dublin 8 €1200
2 Bed, Knocklyon €1200
2 Bed, Tallaght €1200
2 Bed, Inchicore €1300
2 Bed, Kimmage €1300
2 Bed, Knocklyon €1300
2 Bed, Rathfarnham €1300
2 Bed, Terenure €1600
2 Bed, Sallins €3000
3 BEDS
3 Bed, Newbridge €1150
3 Bed, Lucan €1200
3 Bed, Naas €1200
3 Bed, Lucan €1250
3 Bed, Lucan €1300
3 Bed, Naas €1300
3 Bed, Ballyfermot €1500
3 Bed, Harold's Cross €2000
4 BEDS
4 Bed, Lucan €1300
4 Bed, Knocklyon €1700
4 Bed, Rathfarnham €3500
5 BEDS
5 Bed, Lucan €1500
5 Bed, Templeogue €2200
5 Bed, South Circular Road €2900
5 Bed, Terenure €4000

finally,

1 Bed, Rathgar €550
1 Bed, Ashbourne €800
1 Bed, Christchurch €900
1 Bed, Tallaght €900
1 Bed, Dublin 8 €950
1 Bed, Leixlip €950
1 Bed, Milltown €950
1 Bed, Chapelizod €975
1 Bed, Tallaght €1000
1 Bed, Castleknock €1200
2 BEDS
2 Bed, Leighlinbridge €625
2 Bed, Clondalkin €1100
2 Bed, Lucan €1100
2 Bed, Tallaght €1100
2 Bed, Finglas €1150
2 Bed, Clonee €1200
2 Bed, Clonsilla €1200
2 Bed, East Wall €1200
2 Bed, Finglas €1200
2 Bed, Finglas €1200
2 Bed, Finglas €1200
2 Bed, Santry €1200
3 BEDS
3 Bed, Ballyfermot €1200
3 Bed, Ballyfermot €1200
3 Bed, Clondalkin €1200
3 Bed, Maynooth €1200
3 Bed, Tallaght €1200
3 Bed, Tallaght €1200
3 Bed, Finglas €1250
3 Bed, Killbride €1250
3 Bed, Lucan €1250
3 Bed, Tallaght €1250
3 Bed, Tallaght €1250
3 Bed, Palmerstown €1300
4 BEDS
4 Bed, Clonsilla €1375
4 Bed, Saggart €1450
4 Bed, Chapelizod €1500
4 Bed, Leixlip €1500
4 Bed, Knocklyon €1700
4 Bed, Drumcondra €1800
4 Bed, Glasnevin €1800
4 Bed, Kimmage €1800
4 Bed, Dublin 8 €2000
4 Bed, North Strand €2200
4 Bed, Dublin 2 €2800
5 BEDS
5 Bed, Palmerstown €1500
5 Bed, Maynooth €1800

I think that illustrates ore point in terms of rounding
 
Open_Window,

Please desist from multiple postings one after the other. I have merged your three posts.
What is the purpose of these tedious lists?

aj

Phoenix_n

Ok lets post some crazy rents on offer
Click to expand...


Please dont. (Room, Bren and Madison I have removed your "crazy rent" links to daft.ie)

aj
 
Sorrya bout that, I would have put them in colums using html if that was possible? (is it?)

I was trying to show how price rounding is the technique used for rents in Dublin.

There is a unifomiryt to the types of rents demanded on properties that are located in very diverse areas of Dublin, but share say the feature of "2 bedrooms" so all 2 bedrooms hover around the same price, regardless almost of location, size, facilities, furnished or unfurnished (unfurnished is rare, pity...) and other such variables.

Which leads me to believe that everyone is trying to get as much as the market can bare.

There is no reason why rents should be so high in Ireland.

Tennants are a easy target and a large divided minority so they are very much taken advantage. I believe.

I hope that clarifies why rents are so crazily high as somne posters have pointed out.

Rents are at an obviously disproportinate to your tenancy right and quality of life if you took Ireladn as the norm.

To sum it up

Ireland
High rents = poor tennacy rights, small format accomodation, poor furnishing, little unfirnished options.

Rest Of the Universe
Low rent = good huamne tenancy rights, excellent choise of accomodation accomodation arragnements (co-ops), unfurnished options (in some cases rennovations requested entertained and allowed)


Ireland has a very immature Landlord class, who expect a lot for very very little.
 

Not sure it is anything like 30% difference any more, certainly not in IT. The UK average salary and Irish average salaries are now pretty close (within 5%).
 
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