Who could have foreseen rent controls would see landlords leave the sector?
The logic of IPAV here makes no sense if you’re looking out for the tenant, or want any kind of stable rental market.
Rent controls were bad because they caused landlords to not be able to charge “market” rents, the example being given here is of a rent that IPAV think should be increased by more than 80%.
In return for allowing rent increases of, eh, 80%, we would keep landlords in the market and presumably encourage further investment by more landlords purchasing more properties to rent at these new higher prices.
The logic here is supposed to be that this increase in supply in the rental sector would result in a meeting of supply and demand, and thus a fall in rental prices.
So, we allow huge rent increases and then this increases supply and rent prices fall. For some reason *this* fall in rental prices would, in IPAV’s mind, *not* result in landlords leafing the market…
I don’t think it helps that they recently announced tenancies need to be re-registered yearly. I saw a tweet reminding landlords about it with landlords replying “Right, sending eviction notice now then”
Impossible to kick out bad tenants, insane taxation. Done
Written by a guy that sells houses.
I mean the rents are increasing because prices are increasing. If you wanted to sell your property, there might not be a better time than now.
[deleted]
Couple of factors
Those that bought second properties between 2011-2014 are except from capital gains
“Any gains made on a property acquired between 7 December 2011 and 31 December 2014 are exempt from CGT. You will get full exemption providing that you:
owned the land or building for at least four and up to seven continuous years
If they sell there current property that has been hit by the rent control limit and buy one that was not rented before they are free to charge 2x , 3x or 4x compared to what they rented on the older property even if it was in a similar apartment in the same building or street.
Risk v reward isn’t there.
Many are older do don’t want to have to deal with the risk of a bad tenant.
If you have a house in flats it has to be up to fire spec which costs a lot to do.
You can’t turn down hap but if you’ve and older house it could be impossible to meet their standards or at least very expensive.
Lots off LL bought section 23s in the 90s and 2000s that have expired.
Biggest reason is probably you can sell now by emptying the house and selling it. Soon you might have to sell with tenants which drastically affects the value.
Get out now live off the capital or invest it in something safer.
It’s probably a good idea to see the house and then build 3 new ones instead.
If landlords are selling up does this mean more private houses for sale for actual people to move in?
You would think having landlord selling is a great thing. Only problem is alot of tenant’s are priced out of the market and cannot buy a home so it puts more pressure on the market.
A lot of people need to read this
> It is now accepted, and documented in RTB reports, that 6,824 private landlords left the market between 2018 and 2020, bringing numbers down to 165,736.
So less than 1.5% leave the market each year. I would guess for any normal business that’s an incredibly low figure.
Not many left.
​
“It is now accepted, and documented in RTB reports, that 6,824 private landlords left the market between 2018 and 2020, bringing numbers down to 165,736.” –
​
– so 4% of them left? big whoop-de-doo.
Cause the selling price is through the roof
Anti landlord sentiment
Excessive tenants rights
High property prices
A lot of fear-mongering going on about a recession coming.
Also endless talk of mortgage rates rising despite the fact that every bank left in the country is lowering their rates to record lows.
Pat Davitt is chief executive of the Institute of Professional Auctioneers and Valuers
My brother is an accidental landlord, because of negative equity. €2000 rent, on a €1450 mortgage. Tax at 52% on the €2000. Annually the apartment costs him 4000-6000. Losing money all the time. Just keeping it for the kids at this stage.
Ireland is a capitalist country, not a communist one. The Government intervening in the private rental market is causing a lot of problems. The market will self regulate if the supply is there. That is basic economics.
We have a 4 bed house for sale in Galway .We are getting 1150 per month in rent,(if house is full). The rest of the houses on the street are rented between 1800 – 2400 per month but we can only increase the properties rent by 1.5/2% per year so we feel like we’re getting screwed on the property.
We’ll take the 380k . Thanks very much Chris. Final answer.
The Government put all their eggs in the private landlords basket regarding supporting social & low income housing. Private landlords are not public servants and should not be vilified for trying to make as much as they can in an open market economy.
You wouldn’t go down to BMW & Mercedes dealerships and tell them they have to charge the same prices as Renault while simultaneously praying to the heavens for organic growth in the market to meet demand.
23 comments
Record house prices, next question
They smell a crash and cashing in now at peak?
Who could have foreseen rent controls would see landlords leave the sector?
The logic of IPAV here makes no sense if you’re looking out for the tenant, or want any kind of stable rental market.
Rent controls were bad because they caused landlords to not be able to charge “market” rents, the example being given here is of a rent that IPAV think should be increased by more than 80%.
In return for allowing rent increases of, eh, 80%, we would keep landlords in the market and presumably encourage further investment by more landlords purchasing more properties to rent at these new higher prices.
The logic here is supposed to be that this increase in supply in the rental sector would result in a meeting of supply and demand, and thus a fall in rental prices.
So, we allow huge rent increases and then this increases supply and rent prices fall. For some reason *this* fall in rental prices would, in IPAV’s mind, *not* result in landlords leafing the market…
I don’t think it helps that they recently announced tenancies need to be re-registered yearly. I saw a tweet reminding landlords about it with landlords replying “Right, sending eviction notice now then”
Impossible to kick out bad tenants, insane taxation. Done
Written by a guy that sells houses.
I mean the rents are increasing because prices are increasing. If you wanted to sell your property, there might not be a better time than now.
[deleted]
Couple of factors
Those that bought second properties between 2011-2014 are except from capital gains
“Any gains made on a property acquired between 7 December 2011 and 31 December 2014 are exempt from CGT. You will get full exemption providing that you:
owned the land or building for at least four and up to seven continuous years
and
sold the property on or after 1 January 2018.”
https://www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/property-acquired-between-7-December-2011-and-31-December-2014.aspx#:~:text=Any%20gains%20made%20on%20a,up%20to%20seven%20continuous%20years
If they sell there current property that has been hit by the rent control limit and buy one that was not rented before they are free to charge 2x , 3x or 4x compared to what they rented on the older property even if it was in a similar apartment in the same building or street.
Risk v reward isn’t there.
Many are older do don’t want to have to deal with the risk of a bad tenant.
If you have a house in flats it has to be up to fire spec which costs a lot to do.
You can’t turn down hap but if you’ve and older house it could be impossible to meet their standards or at least very expensive.
Lots off LL bought section 23s in the 90s and 2000s that have expired.
Biggest reason is probably you can sell now by emptying the house and selling it. Soon you might have to sell with tenants which drastically affects the value.
Get out now live off the capital or invest it in something safer.
It’s probably a good idea to see the house and then build 3 new ones instead.
If landlords are selling up does this mean more private houses for sale for actual people to move in?
You would think having landlord selling is a great thing. Only problem is alot of tenant’s are priced out of the market and cannot buy a home so it puts more pressure on the market.
A lot of people need to read this
> It is now accepted, and documented in RTB reports, that 6,824 private landlords left the market between 2018 and 2020, bringing numbers down to 165,736.
So less than 1.5% leave the market each year. I would guess for any normal business that’s an incredibly low figure.
Not many left.
​
“It is now accepted, and documented in RTB reports, that 6,824 private landlords left the market between 2018 and 2020, bringing numbers down to 165,736.” –
​
– so 4% of them left? big whoop-de-doo.
Cause the selling price is through the roof
Anti landlord sentiment
Excessive tenants rights
High property prices
A lot of fear-mongering going on about a recession coming.
Also endless talk of mortgage rates rising despite the fact that every bank left in the country is lowering their rates to record lows.
Pat Davitt is chief executive of the Institute of Professional Auctioneers and Valuers
My brother is an accidental landlord, because of negative equity. €2000 rent, on a €1450 mortgage. Tax at 52% on the €2000. Annually the apartment costs him 4000-6000. Losing money all the time. Just keeping it for the kids at this stage.
Ireland is a capitalist country, not a communist one. The Government intervening in the private rental market is causing a lot of problems. The market will self regulate if the supply is there. That is basic economics.
We have a 4 bed house for sale in Galway .We are getting 1150 per month in rent,(if house is full). The rest of the houses on the street are rented between 1800 – 2400 per month but we can only increase the properties rent by 1.5/2% per year so we feel like we’re getting screwed on the property.
We’ll take the 380k . Thanks very much Chris. Final answer.
The Government put all their eggs in the private landlords basket regarding supporting social & low income housing. Private landlords are not public servants and should not be vilified for trying to make as much as they can in an open market economy.
You wouldn’t go down to BMW & Mercedes dealerships and tell them they have to charge the same prices as Renault while simultaneously praying to the heavens for organic growth in the market to meet demand.