Who rents the high end houses?

Just looking through the rental section of daft in my area (Wicklow) and notice a good number of rentals for really high end gaffs. Do people really spend 2.5K a month on rentals?

daft.ie/searchrental.daft?id=1409103

daft.ie/searchrental.daft?id=1402152

daft.ie/searchrental.daft?id=1381278

I have always assumed that the main market for these would be relocating families. Businesses will often give relocating staff a relocation package. For families that has to be enough to rent an attractive family home. Obviously they would need to be highly valued to get this in the long term, but a couple of months for sure. Another market would be displaced families housed by insurers etc.

My own experience would be that a lot of international businesses have a highly mobile director/executive level of personnel who would come to Ireland to head up a specific project or restructure a ‘regional’ office etc. on a temporary basis. My BiL was in Dublin a few years ago for six months and the company hired him a ridiculous 3 bed pad in Ballsbridge he rattled around in for the time period- I guess it works out cheaper than a hotel and a certain level of accommodation would be ‘expected’ no matter what.

I travel for work and I don’t expect to stay in kips. It does happen, but rarely and I am vocal if it does. I don’t live in a kip at home. If in a location for more than a few weeks I would expect to have a place to cook my own meals and relax. The only exception I have found to this is Saudi Arabia where it’s not feasible unless the move is semi-permanent. Thankfully I’ve not personally been sent to Saudi Arabia… yet. I’m lucky to be in a position of relative power.

EDIT: Just to clarify, the best I have ever managed is a three week stay in a five star hotel and a two week stay in a two bed apartment to myself. The former was in South East Asia for the princely sum of USD 70 a night. The latter was because my one bed apartment was not yet ready.

Doesn’t renting make more sense, from an economic standpoint, the higher the value of a property?

From an investor’s point of view aren’t the best yields usually on cheaper apartments?

So conversely, from a renter’s point of view, wouldn’t there be more “value” in the upper end of the rental market?

Aware of 2 high net worth individuals in the US who rent houses in the $8,000- $10,000 per month bracket, they say they could never buy the property or justify buying it, they are renting multi-million $ properties in exceptional locations. One of them says he will never buy a house, way too much hassle.
Also have several friends whose companies (all multinationals) pay for rental accommodations from $2,500 to $5,000 per month. This is in a Latin America country.

I imagine there are allot of executives in Ireland in temporary assignment to keep the shell operating and justified, if you are doing the Double Dutch, a few grand on rental is not a problem.

An Eagle Valley example:

11 Eagle Valley
€2300/mo now
rent-flats.nuroa.ie/property/200 … id=4039482
Sold for 750k on 9 Oct 2013.
myhome.ie/priceregister/11-e … low-208494

I make that 3.7% gross yield.

If it weren’t for distortions in tax system there might be an arbitrage opportunity somewhere (like buying and renting out apartments and using the proceeds to pay the rent), but as it stands with the taxes on rental income and full CGT exemption on PPR I can’t see it making sense.

hate to say it but we have been renting for the same 4 bed house for the past 4 years in SCD and paying initially €1850, now €2000/month and it is nowhere near the standard of the places linked to above - I would have thought somewhere like this at €4,250/month is more typical ‘high end’

myhome.ie/rentals/brochure/c … in/2676270

Simple answer. I do!

I just don’t see the sense in investing in a risky and illiquid asset as property at such low yields. Of course the EAs had a mantra last year that “People do not think like that any more. They want a home, not an investment.” I can tell you that the bank is thinking like that when considering mortgage applications.