Why are landlords obsessed with getting market rents?

Status
Not open for further replies.

I think making half a million people homeless overnight might have bigger repercussions. The purge or such..
 
AlbacoreA said:
Do landlords create demand or build property? No.
Click to expand...

Yeah they do. What apartments we do have in this country that we're built in the last ten years in Dublin we're predominantly built by landlords.......the so called PRS sector....or they we're built by developers only cause they knew that the development in its entirety could be sold to a landlord close to completion....which is functionally the same thing as landlord building an apartment block.

Ever hear of a forward fund transaction.....they we're all over the place......a developer would get planning for an apartment building and then shop the plans around to pension funds and asset managers (landlords)....only when a deal was done to buy the finished apartment building would the developer actually begin to build it......so who created the demand for the apartment building.....the future landlord did.
 
Last edited:
Sister Sara said:
I agree they don't build houses. Developers build houses on foot of demand.

I do however think landlords create demand by competing for properties that may otherwise be bought by owner-occupiers.
Click to expand...

So your theory is landlords are creating a demand for houses. But we have shortage of house being built. Doesn't add up..
 
I think whats clear in this thread and others - is that housing is such an emotive issue....such an emotive asset class....that people's brains get scrambled when they think about it.....maybe its our colonial past, the land wars or whatever.......but folks brains get broken when they think about housing......but quickly unbroken when you start talking about price controls in the context of say their wages or the price they should be able to sell their own house at.
 
letitroll said:
Yeah they do. What apartments we do have in this country that we're built in the last ten years in Dublin this
Click to expand...

Thats nothing to do with all landlords. That's institutional investment large landlords which are about 10-15% of the market. Because the govt legislation is aimed at attracting those and kicking out small existing landlords. The loophole of the RPZ is a new rental doesn't have a rental cap. Only existing tenancies. The renters also wanted "professional" larger landlords. Well they got them.

Look how it worked out.
 
AlbacoreA said:
I think making half a million people homeless overnight might have bigger repercussions. The purge or such.
Click to expand...

Just as they dont build houses, they dont destroy houses either.

Basically, the "overnight disapperance"...wherever they go, would provide some 350,000 properties for the tenants, or other FTB's to purchase instead.

What would that do to the supply/demand and market price of housing do you think?

Bearing in mind, AIB lent out €3.1bn (36% of market share) in mortgage lending in 2024.

There is no shortage of money to provide for prospective home owner occupiers.

AIB grows its new mortgage lending by 10%

Latest news on Ireland's companies and busines organisations and their impact locally, nationally and globally.
www.irishexaminer.com
 
AlbacoreA said:
It's a crazy suggestion.
Click to expand...

Thanks @AlbacoreA ...it is a crazy suggestion.

But just for a moment, if you may, entertain it.

You suggested that if "landlords vanished overnight" we would still have more demand than supply.

I suggested that that may be true, but somewhere in the region of 350,000 habitable properties would come available on the market. And just as landlords do not build houses, they dont destroy them either by their overnight vanishing.

Knowing that there is a near €10bn budget from the Irish banking sector to support the purchase of mortgages on residential properties.

What do you think would happen to the supply/demand and price of housing if some 350,000 properties were put up for sale by landlords?
 
Perhaps "dont saw sawdust" or "dont sweat the small stuff"might apply here.Surely the bottom line is to only rent to decent people and respect them and look after them well and use a bit of good common sense and dont be afraid to spend some money on any repairs etc.that they request rather than counting the rent pennies=peace of mind for both parties. = [my 10 cents]
 

Forgive me if I'm wrong. But you give the impression you don't really care about the renters left in the cold in the game of musical chairs. Once certain people can buy a property.
 
Sister Sara said:
That is why we have government - to intervene when market rents and market prices are not fair and undue value is considered to be captured by one side over the other.
Click to expand...
Caveat I need to read the rest of the thread.... and also for clarity I am not a Landlord.

However, the intervention in the property rental market by Government is actually causing unfair and undue practices for both Landlords and Renters. From my point of view, the government should NOT be interfering with open market rates but definitely SHOULD be investing in social solutions for the masses who are left struggling for housing etc.

Goverment intervention should be targetted where it is needed, using our hard earned taxes not trying to change market dynamics. Or dare I say address the elephant in the room to just build more houses....
 
AlbacoreA said:
Forgive me if I'm wrong. But you give the impression you don't really care about the renters left in the cold in the game of musical chairs. Once certain people can buy a property.
Click to expand...

I forgive you for being wrong.

If 350,000 properties (my estimate, happy to be proven wrong) came onto the market by virtue of your vanishing landlords, coupled with an available lending book for mortgages of some €10bn, most, not all, most, of the existing tenants paying record prices of rents would easily afford the mortgage based on descreasing house prices.

Courtesy of your suggestion of vanishing landlords.

It's not a panacea, but in the whole scheme of things I think you have cracked the housing crisis in Ireland - we need less landlords, not more, because the financial sector is ready and available to lend €bns to owner-occupiers.

Well done!
 
Of course they report it as more tenancies and more larger landlords (100-plus properties) to. Imply there is no shortage of supply. Or that landlords are not registered so there's actually a lot more than the stats suggest.

When it's obvious theres huge a shortage of supply.
 
We've had 20 years of anti landlord legislation, and 20 years of not building enough housing.

Yet people still want to vilify landlords rather than build housing. Every year it's the same. Every year they wonder why doing exactly the same thing for two decades isn't working.

Over and over the same thing.
 
Sister Sara said:
most, not all, most, of the existing tenants paying record prices of rents would easily afford the mortgage based on descreasing house prices.
Click to expand...

Many renters don’t want to buy. They want to rent for the flexibility it offers.

Many would get out bid by people living with parents / people moving (back) to Ireland etc.

It’s wouldn’t be a 1:1 conversion. Four people in a house share aren’t going to buy a house together.

So what happens to those who miss out?
 
I was renting a rent controlled house in a nicer area than where I eventually bought last year for a higher mortgage monthly repayment. Reason I bought was because I did not want to be a tenant for ever after. But I can see why lots of people would happily remain as renters and enjoy rent control indefinitely. Ultimately everyone's debtor is someone else's creditor when it comes to the economic cost of providing accommodation. There needs to be a balance.
 
I would suggest the title of this thread is meant to deliberately gaslight landlords. If you work to save to buy an asset you should be entitled to charge the market rate the same way that you sell equities, gold, art or cars. Any suggestion to the contrary is ridiculous.
The new measures will do nothing except drive landlords of all sizes away from property. In particular rules on selling which are draconian. I predict a rise in eviction notices. The consistent tinkering with rules will do nothing to add to rental properties to daft. The elected policymakers are incompetent.
 
Status
Not open for further replies.
Menu
Log in
Register