Daft research: Rent prices are stabilising.

theObserver@hotmail.com

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What the DAFT rental index shows is quite interesting. Having seen very substantial falls in 2008 and 2009 it would now appear that rents in Dublin have stabilised. This is apparent from the data for the last few months. It is clear from this that the supply of properties to rent is equal to the flow of new households being formed - the market is in a temporary equilibrium. This is happening in spite of the very significant outflow of people through emigration. This situation could persist for some time with stable rents. However, at some point, with the supply of properties fixed, new household formation through new renters could begin to put pressure on the market. This may not seem likely now with major fiscal retrenchment in prospect and, hence, low growth likely in 2011. However, the recovery in the tradable sector of the economy, which is clearly under way, will eventually begin to drag the rest of the economy back to growth. Then, with employment rising, incomes stabilising and prospects becoming brighter, more people will seek rental accommodation. In turn, as the excess supply dwindles rents will begin to rise. Initially such a small rise in rents will not have much impact. However, when it becomes well established it will have a number of effects. It will cause some of those renting to assess whether, in the face of rising rents, house purchase might be attractive. Eventually, as returns for those owning rented property rise and when there is some limited bounce back in house prices, there will be a gradual perception that Ireland will need some more dwellings in high demand locations.
http://www.daft.ie/report/
Surely we need rent and house prices to continue falling? Both are still vastly overpriced.
 
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oceanclub

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Exactly; only to vested interests is this "good" news.

I doubt the news that Ireland is now indebted to the tune of €100bn and we're to see savage tax rises will do rental prices much good.
 

JCR

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Bloody hell, after a lot of coulds and mights Daft bizzarely conclude that we will need to...........build more houses!!!!!!! Does Brendan O Connor work for Daft now or what. What a load of utter crap.
 

Paddythai

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I'm looking to rent a house within commuting distance of Limerick and there are greta bargains out there.
I've seen mansions overlooking lakes for less than 1,000 pm.
Regular 4 bedroom houses are going for 750 pm.
 

theObserver@hotmail.com

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I'm looking to rent a house within commuting distance of Limerick and there are greta bargains out there.
I've seen mansions overlooking lakes for less than 1,000 pm.
Regular 4 bedroom houses are going for 750 pm.
I've seen one bed cramped apartments in Dublin for 1000pm :(
 

Nonsence & lies

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At a minimum i'd imagine people are going to be loosing €10 euro a week, €40 a month.

I've got news for daft, rents are gonna be dropping on all property again very soon as spending power takes what could be a huge drop
 

CutsCutsCuts

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I'm looking to rent a house within commuting distance of Limerick and there are greta bargains out there.
I've seen mansions overlooking lakes for less than 1,000 pm.
Regular 4 bedroom houses are going for 750 pm.
Link please!! I have been looking in that area too and about 800-1000 is my budget. A mansion overlooking a lake would do quite nicely!!!
 

Monday Monday

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Property company says "invest in property".

In other news.. beverage multinational announces it's products are "good for you". Reports suggest a cartoon of a farmer pulling a horse on its cart was spotted on the side of a Dublin pub.
 

Arracht

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With proposed property taxes, higher income taxes etc would that not discourage people to buy and thus generate more demand for renting thereby increasing prices? Also a lot of people may prefer to rent while they wait for house prices to drop further, therefore also increasing demand.

As an aside, how do people think the property tax will work for those who own property which they are renting out? Surely the €200 per year per extra property will be ridiculously low if someone is paying a lot more than that for their family home?
 

Arracht

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Link please!! I have been looking in that area too and about 800-1000 is my budget. A mansion overlooking a lake would do quite nicely!!!
Think of the heating costs man! :shock2:

Surely a bedsit and a two bar electric heater would suffice?
 

cozzy121

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Ooohhh we must rush out and by property, rent is dead money, must get on to the property ladder etc....

More bull manure from the vested interests in daft.ie.
Irish property market is dead and will remain so for generations.
 

Skinner

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:lol: @ Daft, very fitting name for that site!

Meanwhile in the real world...

Just keep an eye on property for sale, you will see 'firesale' prices (40% below peak) on the market for 3-6 months, then being taken off for a week or 2 then back on at 20% below where they started and no doubt will still there repeating this process for the next 3-4 years.

Rents are also coming down, you just have to shop around, have your cash ready, and strike a deal that makes sense to you. Private 'landlords' :lol::lol: will strike a deal thats based on reality i.e. do you want an empty flat for another 3 months or do you want a tenant right now? 20% less than you are asking is the deal.

The entire property industry is in crisis, and its the smalltime amateur BTLers that are now screaming at ff to keep them afloat. 10s of thousands of them clinging on by the tips of their fingers, and its now these borrowers that are in the firing line.

Get real Daft, in the next 2-3 years sale prices will likely be 50% of what they are now and rents may fall close to that. If not in that time then for sure 3-4 years.

Oh, and stop dragging our country to ruin and the gutter to preserve your delusional fantasy of free money and having the unwashed masses paying for your mid-atlantic lifestyle. The party is ooovah!
 

oceanclub

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Not sure will Daft publish this, but I post my comment on their site here for posterity:

Take off the rose-coloured spectacles, put away your keyboard and look out the window. The country is broken. Not only is the country broken, but we've managed to break Europe - or at least, the Euro - with our obsession with property. We're a few inches from being the next Argentina. We are on the brink of having the middle-classes and retired rioting outside boarded-up banks.

And here's Daft, churning out the same rubbish we've been hearing from vested interests for almost two decades now.

Only vested interests would argue that artificially maintaining high rents is _good_ for the economy. No doubt these are the same people who are saying that, at the same time, the minimum wage should be cut and wages lowered overall. Companies are folding everyday due to the fact their incomes cannot hope to pay for the overpriced rents they are being charged. Property in Ireland, both to buy and to let, is still way too expensive. And oddly enough, the only people who disagree with this are those who own/let said property.

Cop yourselves on.

P.
P.
 

An Gilladaker

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:lol: @ Daft, very fitting name for that site!

Meanwhile in the real world...

Just keep an eye on property for sale, you will see 'firesale' prices (40% below peak) on the market for 3-6 months, then being taken off for a week or 2 then back on at 20% below where they started and no doubt will still there repeating this process for the next 3-4 years.

Rents are also coming down, you just have to shop around, have your cash ready, and strike a deal that makes sense to you. Private 'landlords' :lol::lol: will strike a deal thats based on reality i.e. do you want an empty flat for another 3 months or do you want a tenant right now? 20% less than you are asking is the deal.

The entire property industry is in crisis, and its the smalltime amateur BTLers that are now screaming at ff to keep them afloat. 10s of thousands of them clinging on by the tips of their fingers, and its now these borrowers that are in the firing line.

Get real Daft, in the next 2-3 years sale prices will likely be 50% of what they are now and rents may fall close to that. If not in that time then for sure 3-4 years.

Oh, and stop dragging our country to ruin and the gutter to preserve your delusional fantasy of free money and having the unwashed masses paying for your mid-atlantic lifestyle. The party is ooovah!
Aw its just another Daft report

Strong rental growth points to stabilising property markets
 

theObserver@hotmail.com

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Think of the heating costs man! :shock2:

Surely a bedsit and a two bar electric heater would suffice?
I have a bedsit that has no heating whatsoever, not even a two bar electric heater. Excellant opportunity to save on heating costs. Sub rental : a mere 600eur a month for you sir.
 


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