Should the State compensate Landlords of capped rent properties which suffer excessive wear and tear or damage?

Hans Von Horn

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Should the State compensate Landlords of capped rent properties which suffer excessive wear and tear or damage?

In the free market businesses are free to set prices to reflect the risk involved or perceived in any given business. Often this involves assessing the known risks and the known risks as well as the level of supply and demand to set a price.

When the State intervenes to cap the price of a product but does nothing to limit the risk then a gross intervention in the free market has occurred.

The State could have targeted supply measures such as reducing tax on rent income, increasing the interest on loans amount that is tax deductible, increasing capital allowances but avoided these.

It is obvious that the cost of rent must make buying houses worth while for renting for people to enter the market. Public housing is enormously expensive.
 


carlovian

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Rents up 50% in 5 years.

My heart bleeds for the landlords.

What about increasing tax relief for tenants like mortgage holders get ?
 

Hans Von Horn

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Rents up 50% in 5 years.

My heart bleeds for the landlords.

What about increasing tax relief for tenants like mortgage holders get ?
Many rental properties are still in negative equity.
 

ShinnerBot No.32564844524

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Many rental properties are still in negative equity.
So society is on the hook for every Dick and Mary's poor investments made on the back of their local bank manager buddie down the local FFG cumann?

Git out ta fec! Bad enough we had to bail out the banks.
 

carlovian

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Many rental properties are still in negative equity.
Oh god love them.

The people who saw an overcrowded property market and jumped in forcing
owner-occupiers to pay inflated prices.

What happened the whole free market thing.

Should they be compensated for making bad investments ?
 
D

Deleted member 17573

Oh god love them.

The people who saw an overcrowded property market and jumped in forcing
owner-occupiers to pay inflated prices.

What happened the whole free market thing.

Should they be compensated for making bad investments ?
The whole free market thing would say you get as much rent as you can in the existing market conditions. Outside of Dublin, and maybe Galway, rents have been ridiculously cheap for the past 8 or so years, certainly a loss maker for the landlords. Now is their turn to make up for that.
 

PeaceGoalie

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So society is on the hook for every Dick and Mary's poor investments made on the back of their local bank manager buddie down the local FFG cumann?

Git out ta fec! Bad enough we had to bail out the banks.
Dead right. Better to stay in Corpo places. Has Dessie Ellis moved out of his one yet?
 

Watcher2

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In the free market businesses are free to set prices to reflect the risk involved or perceived in any given business. Often this involves assessing the known risks and the known risks as well as the level of supply and demand to set a price.

When the State intervenes to cap the price of a product but does nothing to limit the risk then a gross intervention in the free market has occurred.

The State could have targeted supply measures such as reducing tax on rent income, increasing the interest on loans amount that is tax deductible, increasing capital allowances but avoided these.

It is obvious that the cost of rent must make buying houses worth while for renting for people to enter the market. Public housing is enormously expensive.
"Excessive wear and tear" is that not simply damage for which the security deposit should be used and if its in excess of that amount, a claim through the courts, small claims or otherwise? Why should the taxpayer compensate landlords for such damage, criminal or otherwise?
 

Hans Von Horn

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"Excessive wear and tear" is that not simply damage for which the security deposit should be used and if its in excess of that amount, a claim through the courts, small claims or otherwise? Why should the taxpayer compensate landlords for such damage, criminal or otherwise?

The State should allow business people to set prices to reflect the risk of the Business they have entered.

See Article 3.3 and the reference to a market economy. of the CONSOLIDATED VERSION OF THE TREATY ON EUROPEAN UNIONEN

3. The Union shall establish an internal market. It shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance.
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2016:202:FULL&from=EN
 

Watcher2

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The State should allow business people to set prices to reflect the risk of the Business they have entered.

See Article 3.3 and the reference to a market economy. of the CONSOLIDATED VERSION OF THE TREATY ON EUROPEAN UNIONEN

3. The Union shall establish an internal market. It shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance.
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2016:202:FULL&from=EN
With so much state interference in that market, I'm not sure that would apply to be honest. Property rental is not unique either. Look at healthcare/pharmaceuticals. The state regulates the hell out of them even down to prices. When an industry is of such importance to the citizenry, its right that the state have some level of control when need be.

I didn't hear any cries from landlords when taxpayers money was being shoveled into landlords pockets through grants and various tax reliefs.
 

Kommunist

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Only on politics.ie will you find a thread about the poor landlords.

Death to landlordism.
 


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