Rental crisis: One-bedroom apartment for €1,350 snapped up i

independent.ie/irish-news/ne … 04790.html

Is this just the Indo pumping the market? I suspect not. Latest GDP and unemployment figures seem to point to a (whisper it) sustained recovery. The perma bears can’t get their heads around it, but the likelihood is that (Dublin) property prices are not going to be dropping anytime soon…

About €35,000 of a higher-rate payer’s pre-tax income is required to pay that kind of rent. Do you think that is “sustainable”?

What has sustainability got to do with someone’s marginal rate of tax?

The sustainability of rents depend on many obvious things but marginal rates of tax are not top of the list.

+1

Define “recovery”. :neutral_face:

Maybe it was for a rent supplement tenant, y’know since the DSP have become more flexible with their rent ceilings. :slight_smile:

The indo is an absolute rag, their property articles are some of the worst I’ve read - PANIC, BUY NOW, GET ON THE LADDER!!!

Indeed, there are sectors doing well, finance and dot com 2.0 for example (although the sustainability of those could be another discussion entirely). But what property bulls keep missing is that rising property prices are not conducive to a healthy sustained recovery, they hamper it.

There is no need for suspicions. It’s just lazy journalism.

Which perma-bears are you talking about?

What the perma-bulls generally ignore is the collection of distortions in the overall property market, and the fact that the recovery in the economy is not sufficient to explain the magnitude or speed of the increases (and as scratcher says, the out-of-proportion property price growth will in time hamper and slow the recover)

To pick up on the detail of your own point and the logical gaps therein: to say that because there’s a recovery property prices will not drop is to make a leap that depends on several assumptions. If prices are out of kilter (on the high side) for the current state of the economy, then they are set up for a fall. This fall can happen even if the economy remains good. If from that unbalanced position prices rise further, then the risk (and ultimate size) of that fall becomes greater.

Anyway, to be honest, it all becomes a bit moot when you just look at value. If Xavier Ct is where I think it is (near Nth Strand?), then it’s really not a very nice place to live, albeit that it’s pretty central. To pay 1350 to live there is nuts compared to where you might live (in the world)…

I mean, if you were looking in an expensive German city like Munich, and had 5 minutes to do your research, you’d think maybe that Haidhausen might be a desirable neighbourhood and then come up with units like this:
immobilienscout24.de/expose/75414401
€1200 per month (or 1400 with nebenkosten, which would normall wrap up heat, water, waste), which gives you 2 bed rooms and 84m2.

Mobile foreign professionals could certainly find some good opportunities for work in a city like Munich

Your typical Jimmy Connors landlord couldn’t give a fiddlers fuck about sustained recovery,all they are concerned with is what they can get for a 2 bedder without changing the mattress or repairing the dodgy hob oven and how quick they can turn it round for the absolute maximum rent they can sweat out of it.
Jim and Kay are similar their 3bed semi mired in negative equity to the tune of €330k, if there was a cheerleaders
Costume complete with pom-poms then Jim would put it on and run up and down outside his house every time the CSO release the property price index.

Complete and utter Indo fabrication- it was a two bedroom apartment NOT a one bedroom.

rent.ie/houses-to-let/Xavier … 1/1392214/

Disgusting that they would sink this low.

How do you know that refers to the same unit?

Never let the facts get in the way of a made up ladder mania story,frankly I am surprised anyone’s surprised given the standards at that rag.Good find though fella.

OK, I see now that it is a different agent but it was let last week at the same price- anyone who thinks that there are groups of 40 people lining up to rent a one bed apt in Dublin are deluded- a look on daft shows you there are plenty of 2 beds on the market in the same area and decent ones go for €1400 per month these days- that is the going rate. This is just media shite dreamed up by estate agent that the Indo gleefully goes along with. Who contacted them to tell them about this “news” they might want to cover?

It’s bull crap.

that ad is both listed with the wrong agent and was listed 9 months ago for a letting beginning in March 2014- most certainly not the same property.

The Cost of Living Liberation Army has cost the state billions, is a known terrorist organization and presents the greatest threat to the States security. We must do everything in our power to stop this continued assault on rising prices. If that means fabricating the truth then the means justify the ends. If you see any suspicious behaviour around asking prices online or in an estate agents windows, forums threads or idle chit chat in the local public house, it is your civic duty to alert your local Garda station as soon as possible. :nin

I am not defending the Indo and their style of “news reporting”, just remarking that it wasn’t the same property

None of us can see the future, so we are all making informed or less informed guesses. The reality is that there is a housing shortage in Dublin, employment is growing (as is the population), and the economy is already showing signs of significant uptick. All these factors would seem to imply property prices increasing rather than falling, and that is borne out in the rental and purchasing experiences of many. Whether that’s good from a societal point of view is another matter.

Let’s be clear, it is possible to know some of the future or possible futures sometimes.

btw, for those who follow the irisheconomy blog, the redoubtable John the Optimist has re-emerged, having lost none of his combativeness. He predicts great things for Ireland’s economy…