Rent vs Buy on the 9 O'Clock News (lies or shocking truth?)


Last nights 9 O’Clock news claimed that it’s now cheaper to buy than rent.
The example they used didn’t come close to adding up.

They claimed average rent for a two bed in Dublin is 1200 euro.
That could be true.

They then claimed that if you bought it for 250K the monthly repayment
would be 650 ish (I didn’t get the exact figure but somewhere between 600 and 700.

I’m finding it hard to find a two bed apartment that rents for 1200 a month that
can be bought for anything close to 250K.

So. Were they wrong?
Or. Were they giving an indication of just how low an offer you can make when the
asking price is 400K-500K



Presume you mean they were claiming its cheaper to buy than rent.

Well my rent is currently €1150 and I’m expecting a good drop when it comes to renegiotiating in a few months. But similar properties are asking upwards of €400k so their
example is rubbish


Thanks, fixed it.



That’s because you know nuttin about nuttin…

275k in Artane

1250 per month

I was looking for a direct example in Bray but found nothing for sale and for rent in the same estate but some people seem to think you can get 1500 per month for a bog standard 2 bed apartment in Bray… And over 400k for a 2 bed apartment in Bray… There are literally tens of thousands of these examples in suburbia and the commuterland, whether realistic or not…


Per IPW most recent changes report, average 2 bed rent in DUblin is 1250 and average asking price for 2 bed apts 350k.

Only based on the changes though.

Fecklessly irresponsible is the use of short term rates to make comparisons.


I think Ken was using as an example a very specific shoebox development in which he could sell you an apartment from 650 PM (1 year heavily discounted fixed rate naturally) as against the 1200 PM he would advertise the same property for as a rental.

Of couse, Ken is such a nice guy that I think he probably deserves the benefit of the doubt :unamused:


Did they use a 1yr teaser rate for their repayment calculation ?

[edit - i think ozzy may have beaten me to it.]


This really galled me last night.

They quoted a figure for the repayment of a mortgage (no mention of term) after interest relief and any other deductions they could think of etc as being €686 pm (Aside: is mortgage interest relief only for 5 years and therefore taking the full deduction is incorrect?).

No mention of upkeep costs of owning versus renting. No mention of tax relief for renters, no mention of that fact that I’ve only seen places that are available for rent at €1200 for month being advertised with an asking price of €375k+

I really think RTE have been caught out too many times as being cheerleaders of the property bubble and there should be held accountable for giving out flagrantly misleading and false information.


here’s the numbers

if you bought at 250k with a 10% deposit you’d have a loan of 225,000
if you got a 2.5% 1yr rate over 40 years then it would be €742 per month
before TRS which would come in at -€94 giving a total of €648.

but there are issues on the downside.

  1. will you get a 2 bed for €250k in a decent location?
  2. if rates went up to 5% it would be €1084, rates are back at historic lows
    and rental prices are likely to come down further.
  3. management fees (not paid when renting)
  4. deposit of 25k - is it better on deposit @5.5%? opinions may vary but it is still a consideration.
  5. life cover/house insurance is an add on too.

there are arguments for and against, the forward commitment of a mortgage needs to be considered as well as
your job stability, if you lost your job and had to move the mortgage is not mobile. I didn’t see the show but
from the sounds of things a bit of balance doesn’t go astray!


I know what the word “From” means. As in
FROM 275K.

If you bothered to look at the 2 beds in Timberbills you’d see that the asking prices for two beds are
well over the 300K mark. I’ve been clicking a link in Daft supposedly taking me to a 2 bed for 259K but it keeps
taking me to a two bed forf 314K.

I don’t know what kind of place the 275K model is, but there’s a good chance it’s one of the lower specs available and wouldn’t command the 1250 rent. There are 2 beds in Timbermills already renting for as little as 1100 and 2 beds in the area for as little as 950.

I don’t know if there are thousands of places in commuterland selling for 250K that would command 1200 in rent. I suspect there aren’t. In any case the piece on the News referred to Dublin.

And as mentioned above, all this is before you factor in ANY of the upsides of renting and downsides of buying.

It was in short, misleading PR on the 9 O’Clock News. Just what this country needs.



There are thousands of places in commuterland asking for 250k and demanding €1200 in rent.

The supply of each has tripled at a conservative estimate over the past 18 mths.

God help Navan. :nin


Demanding 1200 is all very well, unless there are lots of similar places in the area demanding 900 and less.
In Navan 2 bed apartments are asking 600.

And again, the News referred to DUBLIN.

The news stated that the average rent for a 2 bed apartment in Dublin is 1200.
Why did it pick 250K out of the air for the price? Why got just give the average cost of buying a 2 bed.
Because it couldn’t.

It was a bait and switch PR stunt by “Honest” Ken McDonald.
Fair play to him. It helps when the people putting together the news can’t be bothered checking facts.



Jaysus rich, you love of being right for the sake of being right, leads you to miss quite alot… I was noting that Navan is fucked because of the huge oversupply in the Dublin hinterland and of course, yes, you’re right but then again I can show you plenty of crap apartments asking 1400 plus for 2 beds and people selling same for 250k, you just need to know where to look…

Anyway, it is cheaper-ish to buy in the suburbs at the moment, if, IF property prices weren’t falling like a motherfucker and rents weren’t likely to go through the floor in the near term and those were long term fixes at those teaser rates!!!

Just like Faith No More used to sing… Love it hurts, hurts like a motherfucker… It kills, it kills, like a sonofabitch…


Well for the sake of argument, this property
appears to have gone sale agreed at E240K or lower, so below the notional E250K figure going.

It’s a two bed, though the size of the second bedroom isn’t given, so it may be a one small bedroom and shoebox.
While it says Stoneybatter, the location given on the map is very close to Bolton St and the Mater which would be good sources of renters.
Not the nicest area, but for convenience a winner.
I’ve no idea about noise or that.

E1200 a month seems to be a common enough asking price for that area, and at E600pp, even with falling rents not particularly excessive, though you’d be far more likely to achieve E1100 or E1000.

At E1100 you’d be making a 5% return based on renting it 11 months a year.


I don’t care whether I’m right or not, but I do expect the News to at least make an effort.

Sorry if I couldn’t keep up with you when I was discussing Dublin and you were off for a jaunt in some place called Commuterland. My understanding of Commuterland is areas around Dublin including parts of Meath and Kildare and yes Navan.

Instead of saying there are “thousands” of places that match what the News described, just post a few links and save us all the trouble.

The one link you posted in Artane doesn’t fit the bill.

And we’re still stuck with the problem that the 9 O’Clock news is still broadcasting unchecked Press Releases for the likes of “Honest” Ken.



275k, when anyone knows you can get at least 10-20% off the top any day of the week? They’d bite your hand off at 250k!

I wanted Bray and then I had to get back to delivering huge amounts of value on behalf of the taxpayer, apologies… I’ll know which side my bread is buttered on next time!!! :wink:


I’ve already explained why your 275K example doesn’t work, even if you get it for 250K.

Even if it was valid it would be the exception rather
than the average case as the News implied. And the News
deliberately ignored the other very real costs of owning vs renting.

So the real question here is why does the RTE News feel the need to mislead the viewing public (who pay for the News).

Flashy new sets and shoddy old practices.
What other news do they lie about?



Artane is in Dublin. How does it not fit the bill?


ffs will you two give it a rest?You’re like a couple of owld wimmin! :slight_smile:


Here is said article - [realplayer required]

featuring the return of Ken McDonald