Daft Rental Report Q2 2011


To be more fair in Woodstown…:

Rent: As above
Buy : €260,000 : daft.ie/searchsale.daft?id=579847
Yield : 5.3%


(Yes I realise that the 260k house for sale is an anomaly, but as someone around here points out often enough, the real sales prices are being set at the edge of the market).


Also there is a house for sale in Glenvara for 250K

Rent: As above (1,100)
Buy : €250,000 : daft.ie/searchsale.daft?id=559115
Yield : 5.3%

Just to clarify, I think the woodstown one is probably overvalued by about 80K, and the glenvara one by similar.




23rdbuchan - the Glenvara one is 3-bed, not 4.

Ed: Haha, sorry, I thought the Woodstown one was 4-bed too, but I typo’d it as a 3-bed.



Come on lads, don’t be shy :wink:


Thought the tenants contribution towards the rent would make up the difference between what I thought was the max rent supplement and the rental asking prices :blush:


Even a 6% yield is completely unrewarding.
Renting a property is a lot of hassle from my experience.
Flooding, broken down washing machines, tenants not paying rent, fallow periods.
It only becomes worth its while with yields above 20% or so in my view.
Take a look at the ft stock screener and pull out 10 strongs stock yielding 5%+ or a decent fund.
If you pick well its so much less hassle.
Much better value in my view.

Interested to know other peoples opinions.


I don’t know what the other renters on the pin have experienced the past few years, but I have moved into two properties since summer 2009. The first property was advertised for €1300 - we offered €1200 and it was accepted. The second, just this summer, was up for €1200 - we offered €1100 and this was accepted. Daft never got a whiff of the actual rents, they only saw and recorded the asking rents. These were 7-8% drops from the asking going unrecorded. I don’t know if this is a common enough occurrence to be a big factor, and neither do Daft.

Also, something else comes to mind. I often spend time on Daft shaking my head at properties that are priced unrealistically and spend months sitting on the market. These unrealistic asking rents are taken as rents. They are anti-rents really, but they are treated as rents. Do they eventually see the light and start to dropthe asking on Daft? Some do. Some don’t. Some probably take offers siginificantly less than asking and don’t record it on Daft. Some seem to just disappear.

Again, I don’t know the extent of this and whether or not it has a significant effect on the overall stats.


It is actually lower, this figures represent maximum values per county but HSE can use lower values in area where rents are cheaper. I know they do it in county Galway for sure.


Have a look at the stats I published in the Rent Supplement thread


The idea that government continues to pay RA at current levels is like those who said we wont see a drop in house prices in 06.
RA cant and it wont continue at current levels. Savings have to come from somewhere. Here is the obvious choice.


It’s like that game with the sticks, you know the one, where each contestant takes a stick out and when it becomes obvious which one will crash the lot they will avoid it like the plague.

They didn’t reduce rent supplement, they toyed around with the parameters of it - they put the onus on the tenant to renegotiate with the LL at the end of the term, many couldn’t get the reductions and were faced with the choice of paying up or moving. By the way, the taxpayer pays the move because the landlord cannot be forced to lower the rent.

The real objective was to force tenants to go onto the RAS (Rental Accomadation Scheme) because Rent Supplement was only ever intended to be a short-term solution - not a long term drain on the taxpayer.

It’s a subsidy - any direct or indirect financing into any industry is a subsidy and when you have a subsidy you have market distortion - you can use examples, anecdotes, ring as many county councils as you like, but that’s what it is. The problem with this subsidy is that it’s attached to the banks - and that, in my humble opinion is where the real issue lies.


Just catching up on this thread - most important comment I noted was where Ronan L notes in his blog (linked above) that even to get to a 6pc gross yield, much of the property market needs to fall a further 33pc !

All the RA questions seem interesting but kind of futile till we get info. Which TD is the right one for all Pinsters to email to put down a Dail question ? Shane Ross ?