Rents getting very cheap in the west


#1

I was reading the local scandaliser this evening (Roscommon Herald) and started llooking at the accomodation available classified ads. There are 3 beds available in most of the ttowns in the county for from €80 per week and even in Roscommon town there is a 3 bed Bungalow for €400 per month. Apartments seem to be dearer to rent than houses probably because of the management fees. Who says property prices haven’t got a lot farther to fall especially in this part of the world.


#2

Daft says:

  1. Renting: 40 properties for rent under €400/month. Cheapest is €75/week.
  2. Buying: 89 Properties with an asking price under €100k. Cheapest property that is listed is a 2 bedroom detached house for €20k. Ironically, the second cheapesy property is €30k, with the tagline “could this be the cheapest property in Ireland” - perhaps last week, mate!

#3

Can confirm that from the neighbouring “Gateway to the West” town, Ballinasloe. All my friends got rent reductions recently, some moved to cheaper places when the LL refused to negotiate. Got reduction myself.
There are some science-fiction EAs in the area trying to rent places out for more than 650 pm, however I do not know anybody paying this much.

Real rent in the area for a new or nearly new 3-4 bed in good condition and good area is about 600 pm including bins. This means, that to rent a place you have to drop below, because there are hardly any people comming - you have to find somebody who wants to move to a cheaper place.

Some friends got a 4 bed semi in town for 500 pm, however it is bit substandard - nothing particularily wrong with it, just bit old, poor furniture, no real backgarden, old appliances and so on. No way it could be rented to a family these days - too many nice new houses on the market for nearly the same price.


#4

My brother built a new 4 bed detached in the Ballinasloe area last year and is now renting it to a young couple for 600pm.
He was very glad to get that amount too.


#5

This is one instance where Daft is seemingly well out of the loop. There are far far more properties for rent on the local paper and the Roscommon Herald only really covers the north half of the county with the Roscommon Champion covering the south. Must get a read of it to see if the rentals are as bad in the south of the county.

The house prices down here are still utterly crazy because something the developers never noticed is that there is shag all work in Co. Roscommon and if you dont have work then nobody wants to live there. People talk about the ghost estates in Longford and Leitrim but they don’t hold a candle to Roscommon. Every village and town has empty or virtually empty estates and / or apartment blocks.

Murf, if your brother is getting that he ain’t doing bad it seems.

(I apologise for the amount of typos last night, guess i was even more tired than I realised :blush: )


#6

Those rents are at about where they were in 1998 , a new semi cost £450 to £500 a month to rent in East Galway/Roscommon back then.


#7

What kind of prices are these houses asking for on the sell market?


#8

Could they import some one parent with two kid families for rental allowance (good for 200 a week looking - at BeTheHokey’s post on another thread) and split the profit? fix the market in true irish entrepreneurial spirit. :wink:


#9

Just about anything advertised on the internet under €100,000 is really a shed needing to be demolished, however there are new estate houses going for €100,000 but not on Daft or Myhome. I think that the market is completely frozen with next to nothing selling so no way of judging real prices at all.

In 2000 a friend rented a dated 4 bed bungalow on 1/2 acre of garden within 5 mins walk of town centre for £68 per week (€86 in new money) so we are back to reality with rents down here however asking prices are still bubbalicious.

On a side note the property section of the same paper now comprises mostly of farms for sale or to let and only a few houses. Feels like the mid nineties again.


#10

To sell a modern (c.7-yr old) 3-bed semi in Tuam, you’d probably want, in some cases, to slash the price to about 100,000. At peak, a modern semi in Tuam would have fetched anything from 165,000 upwards.

Rents have definitely fallen in Tuam in the last 3 months. Rental for a 3-bed semi was typically 150 per week at peak. Now they are typically more like 135 per week. Lots of the East Europeans families with kids settled in schools and getting the dole seem intent on staying. They prefer super-warm houses (i.e. wooden-framed) within walking distance of the schools. Many of them are not as keen on the brick houses.


#11

An identical house to my brothers sold for approx E285k in 07 iirc.


#12

Interesting. At €500 a month, a house “worth” €100k is getting a 6% gross yield.
At €400 a month, €80k => 6% yield.
If (big if considering the amount of vacant stock), those rents hold, 80-100k could be where the market settles in the west. Don’t know if using yields can really give us anything other than rough indication though. Rental in rural areas is very different to renting in the cities and large towns.


#13

There is another teeny tiny problem in the west. There are one or two houses too many in some towns right now so asking prices for rents are really more aspirational than actual but not quite as aspirational as asking prices for houses.


#14

askaboutmoney.com/showthread.php?t=110768

Cant have those pesky tenants talking and possibly ruining the price cartel