End of rent pressure zones?

irishabroad2

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From what I read on rtb website, for a region to qualify as a rent pressure zone, rents must have increased by 7% in 4 of the previous 6 quarters. The second quarter 2019 rents in Dublin increased 3%. I don't know if 3rd quarter figures were released yet but there's a good chance they'll be below 7% also. Does this mean that Dublin early next year may cease to be a rent pressure zone?
 

AlbacoreA

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3,275
Oh I expect they will do it. Berlin did. We generally copy them.

Berlins largest residential landlord. , Deutsche Wohnen, has put on hold all its developments in Berlin and has announced it will focus on other German cities instead.
...the uncertainty caused by the plan has prompted Deutsche Wohnen to review almost 1 billion euros ($1.1 billion) worth of renovation work and investments in new Berlin homes, the company said last week. It has also earmarked as many as 5,000 Berlin properties for disposal....
(Can't link to them they are behind paywall/advertising walls. If you search on the text you'll find the source)



Obviously you'd expect nothing less from commercial interests. Still food for thought.
 

Drakon

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408
From what I read on rtb website, for a region to qualify as a rent pressure zone, rents must have increased by 7% in 4 of the previous 6 quarters. The second quarter 2019 rents in Dublin increased 3%. I don't know if 3rd quarter figures were released yet but there's a good chance they'll be below 7% also. Does this mean that Dublin early next year may cease to be a rent pressure zone?
AFAIK you’re correct that those conditions qualify a region as RPZ. However, I don’t think the absence of those conditions reverses the RPZ status.
 

galway_blow_in

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It's a foregone conclusion that FF support will see this bill pass.

How long will it likely take to be enacted?, it's a truly awful piece of trash, the worst kind of cheap politics
 

NoRegretsCoyote

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It's a foregone conclusion that FF support will see this bill pass.

How long will it likely take to be enacted?, it's a truly awful piece of trash, the worst kind of cheap politics

This is just gesture politics.

It is not professionally drafted and full of ambiguity.

It will run into the sand in the Seanad.
 

noproblem

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Time is quickly coming whereby all rents will be paid to big conglomerates and the likes, with no ordinary Joe the plumber types involved in renting out properties at all. Rules and regulations will make it impossible for the one or two privately owned places to make anything at all out of the exercise. Won't be worth the amount of hassle at all.
 

galway_blow_in

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Time is quickly coming whereby all rents will be paid to big conglomerates and the likes, with no ordinary Joe the plumber types involved in renting out properties at all. Rules and regulations will make it impossible for the one or two privately owned places to make anything at all out of the exercise. Won't be worth the amount of hassle at all.
No doubt the numbers in the LL business will fall but why do you think the sector will be completely REIT dominated?
 

noproblem

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No doubt the numbers in the LL business will fall but why do you think the sector will be completely REIT dominated?
Hi galway blow in,
Quite simply; Affordability.
They can buy the properties in bulk, can afford non payers being followed to court, manageabilty issues make it easier for them as it's their main business, can have systems in place that will become the norm for their staff, and all in all the ordinary bloke will be frozen out, there won't be anything in it for them to make investments of €300,000 to €500,000 worth their time and trouble. There's other everyday issues as well but that's my take on it. Now, i'm talking about the populated areas, big towns, cities and the like because those big boys will have no interest in small villages, small towns, etc, the return is not there. On top of all this is the looming lack of housing around the country, those that are available at the moment should be all gobbled up immediately by those wanting to build because the price of getting a house built has become an awful lot more than what the already built one can be purchased for. Those houses for sale are almost rare right now all over the place. In any case that's my personal take on it for what it's worth.
 

Zenith63

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326
Time is quickly coming whereby all rents will be paid to big conglomerates and the likes, with no ordinary Joe the plumber types involved in renting out properties at all. Rules and regulations will make it impossible for the one or two privately owned places to make anything at all out of the exercise. Won't be worth the amount of hassle at all.
Is this a good or bad thing? All our pensions are likely invested in these REITs anyway, so we’ll be seeing some of the return.
 

NoRegretsCoyote

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917
Time is quickly coming whereby all rents will be paid to big conglomerates and the likes, with no ordinary Joe the plumber types involved in renting out properties at all. Rules and regulations will make it impossible for the one or two privately owned places to make anything at all out of the exercise. Won't be worth the amount of hassle at all.
I doubt this.

REITs are interested in economies of scale. It's worth their while to own whole blocks, with uniform maintenance and furnishings. Apartments is also where the yield is.

I doubt they'll ever be interested in assembling portfolios of houses here and there. Yields are lower, and it's more expensive to maintain a stock of properties that are of different build quality and depreciating at different rates.
 
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