Post bubble rental price


#1

Hi There,

Any thoughts, on post bubble, what the monthly rent should be for a bottom of the rung 3 bed semi on the fringe of Dublin?

Or maybe some international comparisons?

cheers,

Sean.


#2

This could potentially be worked out by going on Morgan Kelly`s predicted house price drops then getting working out what a normal rental income off such a property would be!


#3

My opinion is that we are pretty close to the bottom in the rental market in Dublin. I think that because at current yields property sale prices are shown to be 30%-40% too high, which in turn is corroborated by what the banks are lending and to what salaries. There seems to be a loop of corroboration there that is further strengthened by, say, sales prices per square foot v. international comparisons, or prices suggested by long term trend.

Note I say “pretty close”. Not quite there yet.

As for practical advice, I would say make absolutely sure before bidding that there aren’t a load of similar properties for rent in the area. If there are, then that changes it somewhat and they could be scope to negotiate a further significant discount.