Are we facing a rental crash?

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mercman

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And the longer a property remains empty means longer void periods which effects the Yield. And what about the costs of the advertising ? The only answer is to wait and see and I would have a good gamble that rents are heading South. And I only bet on certainties.
 

Shark Trager

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Cost of ads?? 29e in the Herald a tenner or so on Daft,hardly expensive,when you could be gettin an extra 100e pm over a year lease.Daft watch show 4k properties to rent in Dublin,which has at a conservative guess 1.04mil people,hardly evidence of a " crash"
 
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mercman

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You forgot about the Void periods. Each 3 month period represents one quartre of the total annual income. I'm no expert, only that I have been operating (on an individual basis) in The Irish and UK property markets for the last 20 years. If you are saying no 'crash', why have prices dropped 25% on some properties in the market; and why has the doll of the Irish economy become the major victim of the economic slowdown, with dozens of developers/property owners entering liquidation / administration. Wake up and smell the coffee !
 

Shark Trager

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Keep up will you,I am talking about no crash in the rental market,which is what this thread is about,A semi blind half wit would tell you the property market is crashing,why dont you wake up and smell the coffee.
 

Mrs.B

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Chill out girls.

ST - are you not somewhat concerned (as a long time LL) that these new LLs who entered the fold in the last 4 - 5 years for cap app purposes will be unable to sell up (without taking a bath) and will instead take whatever rent is on offer sending rentals lower?
 

Shark Trager

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The Market is fine,those new LLs who in the last few months reluctantly parked property in the rental market are on bridging finance,and are heavily subsidising their tenants rent,they will take a beating and leave selling at a discount,Developers also will have to sell apt blocks they put into rental market as Banks will make them sell at a discount or repossess.I have outlined in previous posts reasons why rents appear to be dropping,the monitoring and capturing of data relating to price drops is nothing more than a LL pitching rent high and dropping it til he gets a a tenant,this was never recorded before.

Another reason A reluctant LL offering reduced rent to a tenant who will not complain about viewers traipsing through the apt while he tries to get the best of both worlds,selling and renting it.Take it from me this may have workrd it the boom times,but a ftb will not be impressed,especially with the choice open to them.

There is an awful lot of "oh no the sky is falling" sentiment driven by an organised property website,who delight in this negative bs,but My experience recently,the Dublin market is fine.
 

Dinny

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Rented our house at the weekend. Got what we asked for and had 3 couples looking to give us a deposit on saturday evening. I cant see any rental crash as yet but can understand why people may think one is comming
 

murphaph

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The Market is fine,those new LLs who in the last few months reluctantly parked property in the rental market are on bridging finance,and are heavily subsidising their tenants rent,they will take a beating and leave selling at a discount,Developers also will have to sell apt blocks they put into rental market as Banks will make them sell at a discount or repossess.I have outlined in previous posts reasons why rents appear to be dropping,the monitoring and capturing of data relating to price drops is nothing more than a LL pitching rent high and dropping it til he gets a a tenant,this was never recorded before.

Another reason A reluctant LL offering reduced rent to a tenant who will not complain about viewers traipsing through the apt while he tries to get the best of both worlds,selling and renting it.Take it from me this may have workrd it the boom times,but a ftb will not be impressed,especially with the choice open to them.

There is an awful lot of "oh no the sky is falling" sentiment driven by an organised property website,who delight in this negative bs,but My experience recently,the Dublin market is fine.
With all this property being sold at a discount, yet with credit getting hard to come by, is there not a risk that cash rich investors will buy it at rent it out as opposed to ftb'ers etc?
 

bankrupt

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the monitoring and capturing of data relating to price drops is nothing more than a LL pitching rent high and dropping it til he gets a a tenant,this was never recorded before.
I doubt it. Surely rental property was being snapped up so fast in '07 and late '06 that there was no chance that rents were below the asking price? It is clear that it is now taking longer for properties to rent and asking rents are also dropping, this is a new phenomenon in my opinion.
 

Shark Trager

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I doubt it. Surely rental property was being snapped up so fast in '07 and late '06 that there was no chance that rents were below the asking price? It is clear that it is now taking longer for properties to rent and asking rents are also dropping, this is a new phenomenon in my opinion.

No as I said this capturing of data by propetywatch only started in sep 07,you really should read and understand what I have posted,before replying to it.What I said was LLs will start a classified ad for an apt at above what he thinks the market will support,if he attracts a tenant,happy days,if not the next ad will be reduced by whatever 50e - 80e,this is very common,this is also what you are now seeing beig captured for the first time,and been called laughably a " crash"
I am starting to feel like Brer rabbitt in the story where he meets the tar baby!
 

bankrupt

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No as I said this capturing of data by propetywatch only started in sep 07,you really should read and understand what I have posted,before replying to it.What I said was LLs will start a classified ad for an apt at above what he thinks the market will support,if he attracts a tenant,happy days,if not the next ad will be reduced by whatever 50e - 80e,this is very common,this is also what you are now seeing beig captured for the first time,and been called laughably a " crash"
I am starting to feel like Brer rabbitt in the story where he meets the tar baby!
Cheers Brer, I'll try and read your missives more carefully.

Do you mean to infer that it was common for rental properties to have long empty periods in '06 and '07 as appears to be happening regularly now? You also seem to believe that landlords would routinely drop their asking prices during this period? I can't say that I find this credible and it's certainly not what the media was reporting nor was it my experience during the time.

Calling a rental "crash" is perhaps overstating things but it does seem that there is a slowdown of some sort. What % drop in rents would you consider a crash? 10? 20? 50?
 

Shark Trager

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Bankrupt I am def not calling it a crash at all,
I will give you ab exxample,tenant leaves mon,I place ad in paper for 2 bed apt at e1500,a price I know to be too high,but I will chance it, no replies after 3 days,no problem,new ad at E 1350,lots of interest,rented.A few days void is nothing.
Look I do not have a crystal ball,just giving reasons for the supposed drops in rents.
 

Shark Trager

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With all this property being sold at a discount, yet with credit getting hard to come by, is there not a risk that cash rich investors will buy it at rent it out as opposed to ftb'ers etc?
The Investor for the main,is not really in the market in huge numbers,there are a good few experienced investors haggling at the moment in Dublin,some buying distressed gaffs others waiting in the wings,long term LLs will be keeping an eye out for bargains,I know I am,bought in D8 recently,very good price.
For the main though it really is ftbs who are buying.
 
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mercman

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For the purpose of this thread, what % decline in rental prices would define a crash. 10%, 20%, 30% or some other figure ???
 

Afuera

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SharkTrager and Dinny, would you care to mention the areas you managed to rent so quickly in? Thanks.
 

Afuera

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Thanks Shark Trager. It is the right side of the M50 for Dublin, so I guess it should hold up for rental demand.
 

Pope John 11

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Hands up.....
I agree with Sharktiger....I recently rented a property in the city centre....for the same rental price I took in 8mths ago....I have also tested out the water by advertising it at a greater rent. It just makes common sense...to get the best returns;)
 
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