Rental Costs - Unreal!!


#1

I know this is not a very original point to make, but the rental costs in Dublin are unreal.

My landlord has recently indicated that in a few months he I is to raise my (already huge) rent ssignificantly. In advance of this I browsed what’s available on the northside for my current rent. While I did not expect any bargains, I was genuinely surprised at the going rate for grim, grim places. Awful shitholes asking for serious money and little choice. It would almost make one panic buy…


#2

Harass your local TD on the issue.
Nothing will come of it though


#3

The more the government taxes residential landlords the higher rents become.

USC
PRSI
LPT (still not an allowable expense)
Etc.


#4

The government seem to facilitate the non payment of mortgages if the “investor” chooses


#5

And they also seem happy that empty stock remains empty


#6

My landlord has indicated that he is thinking of selling, so I’ve been keeping an eye on options around here (south county dublin) for the past while. Grim stuff alright. I don’t envy anyone currently in the position of needing to find a home at short notice, and I very much don’t look forward to imminently finding myself in the same position.


#7

It’s no fun and certainly not easy renting in Ireland if you are trying to attain adequate, stable and ordinary shelter to a level that might be fitting of a simple life.

So you have to be more flexible and adaptive keeping options open to strategise on a needs be / needs must basis and follow through on what opportunities present themselves. I do understand it can not be that for everyone due the physical, economic and geogprahical limits (must attributable to corruption and incompetence) but to acquire that mental framework helps to deal with the emotional and economic illiteracy as it tries to climb it’s way up to the light by clawing it’s eyes out.

So I refrained form posting this last year but I guess I’ll throw in my own personal experience for the fact things are still majorly malfunctional.

I find myself back to house sharing in my mid-late 30’s. Just like I was when I started this forum with a few changes and upgrades. Don’t get me wrong I enjoy it and have done it for many years previous.

On a positive I’ve managed to reduce my rent by 40% but you incur other costs (unconscionable previously but now a matter of needs must) for so many other reasons certain expectations you bin. There are things you get from sharing that sometimes outweigh what you might have lost. Overall I’m actually sum happier in total. We’re all one tribe in the end.

For many though it would probably represent at an anecdotal measure of how nuts it’s out there and a line too far thus I offer in that vein but I may simpler be too outlier to be of much use. So I’ll anecdote away.

I do my best not to entertain the nuts and their nut burger plans and it has had a monetary cost probably incalculable at this point. Beyond that is physically leaving. That’s something I simply don’t want to do right now. I’m actually very much happier. Life is suppose to be magic in my book and you know living by some unauthoured and arbitrary economic measure never made sense to Open Window, i.e. I’m only offering insight I’m not preaching my pamphelt.

Everyone has to live their life and that’s all I’m trying to do as are the majority of people. Trying to live a life by what you expect life should be is often much harder if not impossible to achieve because those expectation are preyed on and if they majority are fixated by an impossible idea there is very little appetite to snap out of the spell as many know all to well here. It is not until they individually decided to wake up to their life can we expect to see the idea vapourise.

Path of least resistance and all that is my motto.

So the same rental and overall property meltdown that moved me to establish the forum as a mental refuge and place to exchange insight over the madness at hand, has, not gone away and is perceptibly worse because a subset of the managerial class who run the place refuse to allow others live their lives and learn their life lessons and many did vote for it yes, before this they mostly managed the denial now they actively manage the bubble. Though there is never a wrong time to start learning / doing the right thing it’s testing to see car crash after car crash. However you can distance by slotting into your life and not someone else’s.

Clearly the insitutional derived denialisim has a temporal material price. You do your best to mitigate it’s clawing and pawing at your doorstep.

The ranks of people who are in more precarious living arrangements than they ever imagined they would be have certainly grown within our own families and circles of friends.

I’ve starting to imagining living with wheels under my bed some days. For me that’s a design challenge not a crusty encampment. It’s not full circle we are but spiralling past the graveyard.

From observations my guess is an huge influx of migrants arriving on a rotational basis as the Irish Gov allow a new originating jurisdiction easy entry is keeping accommodation full.

Rent Allowance functions as a stealth market control that maintains an unnatural floor on rents.

NAMA has taken supply and masked or removed it for far too long.

The generous if not world first forbearance of mortgage and investment mortgage arrears on a multi annual basis is simply being passed on to the existing fish in the proverbial bonsai barrel.

It’s actually dire if you stop to let it all in or out, but quietly dire it is so. People are jaded or simply not here anymore. Energy is put too survival. Time for dreaming (the thing that gets us out of dodge) is murdered by ignorance and arrogance to order.

Yet I’ve never been happier and felt the gifts of life’s infinite potential can rain down and soak the dry land of despair into a place we might only dream of. If you asked me why. I’d say what I wrote already. I’m doing my best to live my life in the greater story with the rest of your crazy nutburgers. 8)


#8

That’s a very linear logic which has a breaking point to my mind.

It’s not as if the “landlords” are only following orders in this instance unless they Bank with the Bank Of UnRisk.

What they might tax in tax they give back in both in tax allowances for expense incurred (never available to the tenant) and Rent Allowance national market subsidy scheme.

Yet that’s not good enough. Even after some of the supply has been constricted by poor historical planning (see: disaster), a lack of recent and real future construction and with the warehousing of some supply by social outreach programs such as NAMA still multiple speculator BTLer’s have decided to defraud the Revenue of taxable income and enjoy the high as they can go rents in the meantime. That points to something else wrong somewhere else. If many are removing their participation from the collective game and into the black market game bypassing all state oversight (which still has to be paid for) by this means then something else is definitely a problem. I don’t think it can be margin on rents. I don’t think it can be demand. I don’t think it’s supply either. I don’t think it can be Tax/unTax. I don’t think it can be intervention after intervention.

So what really is the problem?

Wht’s that you say Mr Anderson… speak louder!

"DEBT!"

There you go. Thanks.


#9

Oh I don’t know. A reminder that the scandalous increases in the cost of living is why you voted against the government in the local elections and a suggestion that they have a word with the “minister for property price and rent rises” about it tends to sting enough to excite action.

What most disappoints me about the current government is that they just don’t see that their stitching up of young, non-property owning voters is a major contributor to their present troubles.


#10

I was wondering how much of a % increase your landlord is suggesting? And what are they asking for these grim places you’ve seen advertised? BTW: I am not going to use this info to argue with you. Rents are mental in Dublin.


#11

It is mental. But, so are house prices relative to net incomes.

I just signed a lease on a house that would have fetched 460-560K in the last 4/5 months. If I bought it at the lower end of the scale with 20% down, my mortgage repayments would still be at least €2/300pm more expensive than my rent and, my deposit down a big black (bank) hole.

I’ll keep renting.


#12

… and supply is mentler!


#13

Spot on. Property price conversation in the media all seems predicated on the assumption of a shortage of supply (i.e. build moar!). I don’t hear anyone questioning the demand side of the issue. If supply isn’t coming on - static - then what’s driving the demand? Government don’t want us to think about that one.


#14

Evidence? What ‘new originating jurisdiction’? You are aware that we have a common travel area with Britain and that decisions around changing existing visa policies (i.e. lifting visa requirements on countries which currently have them and/or putting visa requirements on countries which have heretofore had visa free access to Ireland) are made pretty much in step with the UK, which is undergoing a deeply anti-immigrant phase? The only changes I am aware of in recent times are on the tightening side (i.e. imposing visa requirement on Venezuela in mid 2014, no change is visa requirements for Colombia and Peru, despite Schengen countries implementing a visa waiver for short term travel imminently)

Which new jurisdiction has the government allowed ‘easy entry’ to in the last 3 years?


#15

The housing crisis in Dublin is actually caused by an unemployment problem everywhere else in the country. Create more jobs around the country and less migrants will move there looking for work.

It’s worth remembering that Dublin boomed during the Great Famine. The very same process is at play now. Interesting link.


#16

My LL put us on 3 months notice last week. Eldest is starting school in September and I really don’t want to be constantly chopping and changing houses… I am hearing lots of people with similar stories. A colleague of mine is putting his PDH and BTL on the market imminently and I have heard a few stories of people being put on notice from LLs. What impact will this have on the market? More selling, maybe more buying, more looking for a new rental. My guess is higher rents and possibly lower prices…


#17

My landlord upped the rent by 20% last year and is suggesting a similar increase is on the way. The grim one-beds are north of a grand, circa 1.1k at a minimum. Exorbitant rents, exorbitant house prices, exorbitant utility bills … on and on it goes.


#18

Perhaps my wording is a bit awkward. I am more talking visa requirements or migratory trends that are very perceptible. I think it’s Brazil, India and Sudi Arabia that most come to mind, being areas now and recent years as the main supplying the demand to my eye (though hard figures versus my finger in the wind anecdote might overlap or conflict), during the Boom you could say it was mainly Polish migrants for example as they where the most identifiable group to influx adding extra demand and keeping the boom going. If you wanted a narrative that could use blocs in a way for people to understand, which I think is still happening but rotating around nationlisites so if it’s not government coercion by incentivisation then what is it?

I’ve no issue with origin but the aspect of where the demand for shelter is originating and why is very important. I think it’s highly globalised and thus very transient and disruptive good or bad this is what’s happening. Boyracer has talked about it and you can read it by the people who walk the streets.

Point is I’m doing what most migrants (or students) do when they come to a new country they combine as much of their demand into one unit to reduce ones out goings. That’s the market now. The prices dictate that sharing rentals is the only way to make it work without it being a financial burden otherwise you can go for rent allowance but I do not have the luxury nor do I want it. It’s not real and perhaps I’m a lot less native than I ever realised.

So perhaps a better way to make the point is to say for a set of not obvious but varying reasons Ireland is very attractive to blocs of certain migrants who arrive in enough volume to put enough strain on a very delicate rental supply side thus causing further stress to existing participants who have a gameplay model that is no longer relevant to the current state of play.


#19


#20

Good point but are most of these people manifesting in the form of demand that originates outside the natural internal economy. I mean this was an important tenent of creating and sustaining the major boom as long as it was so I wouldn’t surprise me if this was a key objective of the high cost of living cult to keep horsing in more bodies like coals on the fire

Are we turning over people, people of a certain demogrpahic that is akin to how FDI rides in and rides out but in a manner that has more socio-ecomic impact that is potentially going to be even far more destructive?

**Do we have (state sponsored) immigration bubble? **

I think that’s what I’m getting at! :astonished: