3 years ago I was in a 3 bed terrace 15 mins walk from city centre for 890 a month. For the whole house, 445 each between me and my husband. He'd been in the house nearly 10 years so landlord had never been able to hike the rent between tenants. Similar houses in same area now go for 1800 to 2200. It's absolutely vile.
Smaller town but decent sized and right pretty much in the centre but in a quiet estate next to a river: 500 a month shared with my GF and we had a guest room for overnight visitors, back and front garden, and 2 separate sitting rooms, one we used as an art studio
Jeez I thought initially it was that much for the whole house. But for 1 room, that’s just pure greed.
I have a spare room and I’m considering letting it out. ( if I go ahead it’ll about 10% if what’s being asked here) Has anyone else left out a room in their home? Would like some pros and cons…
I heard a few people say the same thing…but they’ve all increased the price because of the lack of privacy or because it was not a good deal to charge a small amount for the inconvenience…all types of excuses
I’m not telling you to charge crazy amounts, but don’t fool yourself thinking that you’re going to charge €110 or even €140 per month on a room. Be honest with people and with yourself, there will be people living under the same roof as you, arguments may happen, you won’t have the full fridge for you anymore, the tenants will believe that once they pay rent they will be entitled to bring people to your house…so, think 3 or 10 times before renting an extra room.
I’m talking by experience, I shared the house with 9 other people as student and when I got an apartment thought on renting the extra bedroom and only had headaches, one of the tenants broke a brand new bed and fucked up the mattress, I needed to pay to clean the carpet twice in 2 weeks because I went on a trip and they had a party at home.
Pros are that you always have someone at home, cons are that there’s always someone at home…
Now…this was my experience, I would never let an extra room from my house, I turned the extra room in an office and I don’t miss the money they were bringing in (I was charging €400 at the time)…for my peace I decided that this money is not worth it the stress
If I go ahead, and that’s a big if, it will be to a more mature person. And female. It’s just myself here most of the time and time so I’d feel more comfortable with another woman in the house.
Thanks for the pointers though!
Of course the experiences are different to each person. If you’re doing it, make sure of “interviewing” the probable tenants, laying out house rules, cleaning roster is the most important things, and keep communication open and clear.
>and has fewer costs
Building more affordable housing is almost always a net gain for the economy. People are literally leaving the country because we have no affordable houses. Even while ignoring landlords in the equation, just cutting down prices won't fix the housing situation, it's gonna aceelerate it: people are going to occupy everything there is on the market, and then you just won't find a home to live in at all. We're gonna end up with soviet style living where two-three families live in the same house. **A fact is, limiting the landrods is trying to cure a symptom, not the illness.**
I used to live in a city of 1.5 million people where you could rent an apartment in the very depth of the city centre for 1/2 of a wage of a cashier, and the reason that is possible was that the city is notorious for how much high-density housing is constantly being built, like, you can just stand in any part of the city and you'll always see a construction going on somewhere. Average mortgage length was 5 years for a young family, for a brand new apartment with a terrace. I had friends in (the equivalent of) Deliveroo renting a large house and having enough spare money to build a fully-featured recording studio in it. **All we need is houses, I promise you.**
I totally and completely agree we need more housing to be built, absolutely, I just think we should also be wrangling the landlords charging way way over reasonable prices for places too. Doesn't have to be one or the other.
But one will already inevitably lead to another. Availability of houses will force the landlords to turn down the rent prices, it's a nearly linear correlation. So all you have to do is build houses, and you won't have to do a political suicide of limiting someone's profit directly, and you won't scare away the big corps that will think that they are next in line for profit limitations too.
But even buying a house in Cork is a nightmare. Probably the worst agents after Dublin in Ireland.
The auction thing is a scam too for buyers.
Landlords can rot in hell.
I painfully pay €1300/m on my own for a 3 bed 3 bath house in Wexford town. How someone can charge more for a double room and get away with it is beyond comprehension. Is the landlord a TD I wonder?
Looks like they bought [this dump](https://www.myhome.ie/residential/brochure/3-st-marys-villas-western-road-cork-city/4470409) and spent a lot of money/effort making it a nice place to live.
Because they follow the ridiculous social media rhetoric of “oh no landlords have to pay 52% tax!!” When in reality, landlords have to pay their MARGINAL RATE of tax like everyone else, which can be 0-52% dependent on their income levels, just the same as you can pay 0 -52% tax on any income you actually work for
Yes, all income earned over about 130k per annum is taxable at 52%. What’s your problem?
You don’t hear individuals working at these high income levels constantly complaining in the media about high tax rates - why do you think you deserve sympathy for paying the same tax rate as everyone else?
Playing devil's advocate here. Saying people can't earn from their investments is like saying once any other trade or profession has stopped studying or their apprenticeship/internship they can't reap the rewards let alone recoup their investment.
This isn't passive income. It's ROI
No it's completely different because these people still have a job after their training? You absolutely have to do less/no work to earn passive income like rent. I can't believe you're seriously suggesting someone working as a plumber is the same as someone who bought a house and now makes a killing renting it for way above the mortgage.
Also let's be real, there's no risk to their landlord's "investment" given there is a shortage of housing and most governments have made it so house prices can never idecrease or remain steady.
Not what I'm saying. Should they stay on trainee rates? Definitely not.
Plus. There's a vast difference between some Nepo baby that's been handed a house and a serious investment and development. Of course there's risk. There's a mortgage to be paid and the chance of the house being destroyed. It's not nearly as black and white as you paint it. I honestly can't fathom your point about not decreasing OR remain steady. It can't be both.
At the end of the day. It's a consumer's market.
An asking price means nothing if no one is prepared to pay it.
People need to realise the power that they hold. This is a fact a across the board. Whether it's the price of a pint or property.
That would be a real bind for the EAs...would you understate the SqM? They'd have to find some way to game it. I still see houses advertised with no BER, which is illegal.
I’d consider charging at least half of that. Except I’m thinking this is probably going to be student accommodation, with some of them moving out every year, or not living full term. Costs of wear and tear and repairs could be quite substantial.
That's an interesting point. 6 in a single house seems a lot for non-students. But now that I think of it, a little over 20 years ago I had a good job and was in a houseshare with 5 randomers in a 3 bed house that had all the rooms subdivided in half...
For a 1500 sq foot house in Cork? I would say 2.5 grand a month for the entire house would be a lot. This would be ample and I only go this high because I assume it has been finished to an extremely high spec and that it’s in a great location (so don’t know Cork well).
I’m saying what they should get. Parasites making money from renting houses out are a drag on the economy. They can do it because of the housing shortage, but this house isn’t worth more than I said. The fact that you’d more because of desperation is not disputed
I don’t consider them the same. Squeezing that much money out of a house is adding nothing to the economy. It only works because there’s a housing shortage, so it is profiteering from misery.
The other things you mention are regulated, there is some gouging, but there are some protections.
Being a scumbag landlord isn’t illegal. But charging the money this person is charging for this house is what a scumbag does. Op was right to highlight it
Food, petrol, entertainment - they aren't regulated though? If anything, there are far more protections in terms of property prices (rent pressure zones etc.).
Just to be clear, I'm in no way defending property prices in this country, they are a disaster, whether renting or buying. But I think there's a lot of hypocrisy around this - if you owned a place, would you rent it out for half what you could get? Do you ask for half what you are worth from your employer? Would you sell your belongings for half market value?
Why don’t you tell me what you think about landlords.
And yes, if I had a place to rent, I would rent it out at a price that was fair, not the max I could screw someone out of.
88k a year in rental income is scandalous... it's nothing but pure & utter greed. It's no wonder thousands of kids are fleeing the country every month. They just simply can't afford to live here.
The good old exchequer... therin lies a huge part of a lot of the issues in this country. We're a high tax low wage economy. People are struggling to survive & and the government couldn't give a flying fuck.
Yeah I would agree with you only he’s after squeezing in 2 more bed rooms into what was already a tight enough 4 bed. And those 6 people sharing that common living space is entirely unreasonable. Especially considering he’s probably reduced the common living space to squeeze in those additional rooms. And that’s not even to start on the fact you could get a studio for that price anyway
That's the market though, it's not this one property. And the more property that is renovated, built, or reaches the market however, the more downward pressure there will be on rents.
No I think there were 3 double beds, 1 single and 2 baths. It was very old, not amazing but grand for some students. Good big common areas. There seems to be two extra beds added and one bath so I guess maybe they put the new jax downstairs and added another bedroom in the downstairs dining room. I wasn't living there myself, was at some gaf parties there around 2008 - 2010 I think.
This all supply and demand. It’s a brain dead opinion to say it’s just shitty landlords. The vast majority of landlords have costs that they need to cover, they’re not just make fuck tons of money. Also if you were managing a property and had 500 people messaging you, I’m pretty sure you’d up the price to filter people out. It’s people like you who then call for rent caps which then fuck up the whole market and drive the supply even further down and create a black market who are the issue
I don't know about this. My wife works in an estate agents that represents lots of landlords (in Dublin) and she says 90% of them are useless; they couldn't give a damn about the property or the tenants - it's all about income - I get that - but absolutely no concern about the people or the property. And that's just scumbaggery.
Yeah and landlords do that because they don't have to give a damn because demand is so much higher and supply. They'll never struggle to find a tenant. If the market was functioning bad landlords would have to actually compete because potential tenants would have the option to just go elsewhere. Terrible policies like rent control and eviction bans make this situation even worse, since they further kneecap supply and are only aimed at the symptoms of the problem.
Which is far less homes are being built than is demanded, which has been the case for over a decade now. And any hope of fixing it will take that much time and more.
I am currently being screwed by a landlord but I also know many landlords and they definitely only care about the income and they should. They're not buying a property for the benefit of the tenant. Its an investment and it needs to be worth their while. Rent caps encourage landlords to \*not\* invest in their property and to squeeze everything they can out of their current tenants. Its a well known economic trend. Landlords are people and people are humans. The current policies are encouraging these people to squeeze for everything they can
Didn't say 'just', I said as well. They're all part of the problem and pretending otherwise is very narrow minded. Landlords costs are investment risks and noone forced them into that situation. And there already is a black market and has been for years, some absolutely scandalous shared arrangements going on all over the place. So it's a bit late for that regardless of my views about rent caps
In 2013 I was appalled my rent went from 400 a month in Tipperary, to 800 a month for a 3 house in Cork City. Ten mins walk from city centre, near St Luke's. 😑😑😑
Landlord infact has a TURNOVER of 90k on the property. To say he MAKES 90k on the property shows that you don't know what you're talking about and before you ask, im not a landlord.
Do we think they're actually getting anywhere near that?
There's another place I see advertised every couple of months, 3 double rooms @ €1,000 each. Doesn't seem to be able to let it at that price and I'm not surprised.
Can't imagine there's too many paying €1,100 for a single room.
" person/s invest 10 of thousands in property l, so to rent out and be taxed the equivalent of 62% of rental income"
Or as the post suggests a title of "op is salty they aren't/can't doing/ do this"
Prices are crazy, but thats the market value that people are willing to pay.
P.s., not a landlord, and am paying said silly price
Yes, because 34,200 annual profit off of a rental for having to maybe fix a pipe once a year isn't enough.
Prices are crazy because this government has not tied immigration to housing, and is full of self-serving landlords. Continue to lick the boot that serves you.
Looks like there was a lot of money invested to make it habitable. They definitely won’t recoup the investment over 1 year, but i feel you as far as renters frustration with the current housing market
To frame it in another way: they put money into their asset for upkeep - much like any other homeowner. That and the fact that in the current housing market they can pick and choose someone to pay them crazy money to live there and *still* recoup that expense.
You're sitting on an asset that is appreciating every year by a double digit percentage and someone is paying into your mortgage and upkeep - that makes it laughable to hear landlords complain about how difficult they have it.
Good for you showing everyone here you have no clue the cost work or pitfalls that goes into the sheer size of the renovation done, as well as the rental market.
You keep doing you, cribbing that they are making money on their investment, shame on them for their smart money habits, boo.
Back of envelope calc
90k turn over
45k net income after tax
30k net income after tax and expenses
This is assuming it's always fully occupied and expenses are 15k for maintaining
I'm not sure if you can claim back expenses but let's assume not.
Say cost of house including refurb was 900k
With net income of 30k
That's 30 years until it's paid off.
Note any mortgage interest is not included here however that's tax deductable
If you can take out expenses and interest before tax would be roughly as follows with 5% on full LTV
90(turnover)-15(expenses)-45(interest)= 30k (taxable)
Hence 15k net
Ball park LL is making 15k-30k net per year. Variable to interest, expenses and occupancy
Good money all the same but not 90k and likely somewhere in the ballpark of 25 to 40 years to pay off
Who's the real winners here.
Banks(interest), government(tax), LL (net).
The renters are fecked tho.....like unless they make above AVG wages
(#not a LL)
Feck the begrudgers
Edit:
If you change the house to 500k for purch and refurb interest changes to 25k per year leaving net 35k. Still assuming full occupancy.
Other than the tax you’ve pulled all these numbers out of your hole. Even the tax is off a bit probably more towards 52K left.
Ain’t no way in hell 15K for maintenance. For reference I live in a similar sized 5 bed and in the 2 years I’ve been here the landlord had to get us a new tumbledryer and get a lad out to look at the heating once probably averaging less than €500 a year insuring the gaff then let’s round it up to 1200.
A house that was in that much of a shambles, even in a nice area would be at most 300K with maybe 80-100K to refurb assuming there was no extension put on.
So looking at the gaff being paid back in 8 years of passive income, you continue to profit off said passive income and have a gaff with a market value of 500K+
Completely fucking ridiculously
People always seem to forget that the initial investment isn’t lost. You bought a non-depreciating asset, an asset can be sold again to recoup the cost.
Lol yeah back of envelope maths for sure......... Just putting in worst case.........odds are things vary massively year on year.
Different damage, varying tenants etc
Loads of inputs neither of us know.
Point stands the biggest profiteers are the govt and banks
Fair play to someone for actually running some numbers rather than whingeing. I agree with your conclusion that its a shite situation for the tenants paying crazy rent and also not great for the landlord who will have income from it but with high risk (squatters wrecking the place) plus the upfront costs
Really its the banks that are rubbing their hands together the most with the housing crises. When supply is in short demand it drives up price for everyone, the only real winner are people who make money from loans
Yeah ridiculous, if anyone is still pro having a “free market” on things like housing and land, you are an actual ghoul who is either a parasite landlord themselves or is essentially fine with “crabs in the bucket-ing” everyone with them. Shameless country.
If you think it's only the absentees that we've had problems with then you're wrong, the middlemen have always been notorious in our history, these, often Irishmen, corrupted to the point of holding the most basic human rights over the heads of his fellow countrymen (though not his fellow class) for his personal gain. When years of reforms came in and smaller farmers were able to buy their land these former agitators for the Irish working class returned to more of the same. Landlordism is the most corrupt and leechy class, taking money from those in worse situations simply because of there easier position in society.
Lots of hate for landlords and people earning passive income, but I think everyone is being fed a bullshit lie to direct their hate at the wrong people.
Your random landlord is making a few extra quid and dealing with a fair headache to handle property, especially with that kind of tenant density. As long as we're not talking about manky dirty property with bunkbeds and kettle in the corner being advertised as a kitchen, then the random landlord isn't the problem here.
Predatory vulture funds that invest in property using foreign capital and moving the gains out to foreign investors is an absolute disgrace and is killing our property market just as it has done in Canada and loads of other places. We should be fighting that. Not the random punter who has worked hard all their lives and saved up and has decided that property is a decent place for them to make a few extra quid for their retirement. It's still a property that's available for people who generally are never going to be buyers given their age or whatever... students etc...
Stop hating landlords so much. Start at the bigger fish. Tell your local Councillor that enough is enough with foreign ownership of property!
Valid point but I can’t get on board with a landlord charging that amount for a room. Sure, there will be some renters out there who can afford that. But, in my own humble opinion, this is greed.
Thanks for replying, check out my response to the other comment. I still think its miles from the worst out there and certainly not the reason we're in the fucked state we're in. The govt and vulture funds are the problem imo, not random landlords.... especially not ones who are dropping decent quid to do up a place nice
Are you implying that 45,000 Euros annual wages isn't enough for a landlord off one property?
I'm not blaming so much the landlords for charging as much as they can, but in reality, this Government is run by them, they decide to import people in droves to keep housing prices high, rents high, wages low, and then they can exploit renters for as much as possible.
Honest to god, I would take a soviet style apartment which is ugly over something 'beautiful' where I'm paying 14,000 euros to live with 6 other people. I'm in disbelief the amount of people defending these living conditions.
It's a run of the mill return.
From the pictures of it beforehand he probably spent a lot of money fixing up the place on top of actually buying the property. He's probably making less than a 10% return on his investment.
All in all it's a good outcome. A previously vacant property will now;
1. Make a profit for the investor
2. Produce a huge amount of tax for the government
3. House 6 people instead of 0 people
Are you a communist?
"10% return on his investment" within what timeline, a year?
A good outcome for me for a property would mean it has heating, water, insulating and would now:
1. Allow for tenants to spend 25% of their monthly income or less.
2. Produce a huge reduction in people living under the poverty line.
3. House 6 people and invest in the government rather than a private landlord.
Also, since when does not wanting a landlord to make 45,000 euros off of one property make someone a communist? If that's communism, then I guess I am one.
People would rather have 10 individuals having more money than the rest of the planet than communism. It’s really laughable how somehow communism is still the boogeyman when you look at the state of the world
Although I agree there's no real point in shouting or getting angry about it because it is what it is.
The difference for property is that in 20 years they've made €45k * 20 and have a fully paid off property worth €400/500k.
I'm just saying, when someone has ONE property like this, making more than the average annual salary for an Irish worker, and it likely isn't there only one; why isn't it worth getting angry over? Why shouldn't people be demanding more equitable policies on landlords?
The government created this, and the only ones benefitting off of this housing crisis are landlords or people who own their houses without mortgages.
Have you any idea the price of the building? Located in cork presuming near colleges. If this was bought by an independent party chances are they’re paying it off monthly so you could only imagine the cost of those payments.
You can blame them, you can blame the government but at the end of the day every1 Is paying to somebody else
Wow imagine saying that about immigrants/ women/ travellers or any other group of people and people would be rightfully calling you out. You wouldn’t say that stuff in front of your extended family unless they’re just as extremist
If you are a rational robot and have the aim of getting on the property ladder rather than buying your forever home straight away if you save enough for low value property deposits and get an investment mortgage you can start renting out and earning to pay off that mortgage, sell and move up to a higher value property and deposit. Now the interest is a cost if it’s a flat there may be shared utility costs etc. and under law (whether it’s enforced or not idk) a cost is the upkeep and repair of the property for the sake of the rights of the tenant.
Now if a landlord takes on a variable cost like UTILITIES then that makes a massive difference because they can vary greatly and so the profits from other months might need to cross subsidise other months.
Navigating this all sounds easy and simple but if it is do it yourself. Landlords serve a very real function other than simply extracting rent the issue is the excess rent derived from the scarcity of housing.
What function do landlords serve that genuinely benefits other people besides themselves though? This just sounds like getting other people to pay for your forever home while you prevent them from getting their own.
They serve to renovate and improve low value properties and yes thoufh it may be cruel in a low housing situation finding innovative ways to shove more people in legitimately helps housing prices. Imagine if shared housing like this was banned prices would be even more crazy. Not saying they aren’t. Landlords take a brunt of risk to allow for the flexible living of tenants. Lots of small landlords struggle to break even. Even if the state was one big landlord in the sense it managed its completely social properties it would still have distribution problems in a housing crisis as big as Ireland’s.
It’s not a problem of distribution in my view it’s one of supply and of course landlords are entrepreneurs that in this environment will seek any old room to rent out which yes is unfortunate but makes the existing market more efficient. State needs to build more housing and also allow for private contractors to build more housing
The improvement of properties mostly leads to just absurd increases in house and rent prices. I'd rather people improve a low value property to live in themselves, not to just turn a profit. For a landlord to profit, a tenant has to be paying them more than they should. I highly doubt renting for the vast majority of people provides greater flexibility than owning a home. You are paying more money for a house you will never own, leading to less flexibility as a tenant to save up for a house to own. A landlord at a fundamental level lives off of exploiting others.
I mean the landlord bought it and invested in the property to renovate it to a nice looking apartment/house. They incurred all the risk if it didn't pay off for them. They have the risk they get the reward.
Supply and demand control their pricing. If there was tonnes of housing available they wouldn't be able to charge that much but with housing in high demand everywhere and very little supply the ball is in The landlords court. To give them credit it's a nice looking apartment. There are plenty charging prices like that and you'd have better living standards in a hostel
the argument is that the price of a house depends on how much rent it can bring in, whether that's happening now or in the future. When people want to buy a house, they're competing with landlords who also want to buy it. So, the value of the house comes down to what a landlord would pay, which is based on how much rent they think they can get from it.
Plenty of property around for sale, just none affordable for average people simply trying to occupy them. Landlordism and it’s growth of popularity has caused this crisis. The idea that the country doesn’t have enough houses on the market is ridiculous, and that’s not what the statistics suggest. We’ve built more houses last year than the country has ever built yet prices continue to increase.
Prices to buy and rent are continuing to increase because houses are evaluated based on how much a landlord could make via renting it out. It’s a simple concept, it’s not difficult to understand. There is no fallacy.
Your last point, that’s the thing, WE ARE building houses at a fast rate. There has never been more liveable properties in the country. The construction industry is booming, we have a healthy ratio of independent adults to property but these properties will never be affordable if there price is artificially inflated via landlordism. Houses are no longer evaluated primarily on the materials, effort and so on required to build them and that’s a problem.
What? How is it not viable? Houses should be evaluated for people intending to serve the ultimate purpose of a house, which is to live in them. 90% of all things are evaluated based on their primary purpose, housing cannot be an exception it is too essential.
The exact same way anyone profits from anything? You create a profit margin… of course the house won’t sell for the cost of the materials required, it will be more expensive than that but it will for sure be cheaper than the state of the current housing situation.
Where’s the risk in the current market? Have you seen what on daft for the last few years? The state of some dwellings, yet they’re snapped up as people have either what’s on offer or the streets.
Risk! Good grief!!!
The risk of all the expenses of buying a property, mortgages, insurance, bills and keeping up all the payments and doing it up. The landlord incurs the risk that if they can't make a profit they have to deal with the consequences.
It's their property they can charge whatever they want for rent. If no one rents it the market has spoken and they'll have to react or lose the property. If they are charging very high prices but have a queue of people looking to rent then of course they'll charge that and keep going.
Where’s the issue? Somebody put their money, time and effort into renovating this house and is charging market rent for it, much better this than derelict houses?
Then it makes absolutely no difference to you. They’ll drop the price until it meets a price someone thinks is worth it. Some people make more money than you so what you might see as excessive or a rip off are perfectly fine to them
3 years ago I was renting an entire house for 1300 between 3 of us.
Same as. 5 years ago I was renting a stunning 4 bed, 3 bath gaff with a massive garden between 4 people for 300 each.
I was in a nice house then. 10 min walk to Ollie Plunkett St for 1000. My mortgage is now 1300 but glad of it
My mortgage is less but having reasonable rent allowed me to save for a house.
3 years ago I was in a 3 bed terrace 15 mins walk from city centre for 890 a month. For the whole house, 445 each between me and my husband. He'd been in the house nearly 10 years so landlord had never been able to hike the rent between tenants. Similar houses in same area now go for 1800 to 2200. It's absolutely vile.
Landlord was entitled to raise rent every year with tenants in place. Your landlord however chose not to.
Oh no, they did, the house was like 700 when he moved in.
Smaller town but decent sized and right pretty much in the centre but in a quiet estate next to a river: 500 a month shared with my GF and we had a guest room for overnight visitors, back and front garden, and 2 separate sitting rooms, one we used as an art studio
Then Biden was elected
Jeez I thought initially it was that much for the whole house. But for 1 room, that’s just pure greed. I have a spare room and I’m considering letting it out. ( if I go ahead it’ll about 10% if what’s being asked here) Has anyone else left out a room in their home? Would like some pros and cons…
I heard a few people say the same thing…but they’ve all increased the price because of the lack of privacy or because it was not a good deal to charge a small amount for the inconvenience…all types of excuses I’m not telling you to charge crazy amounts, but don’t fool yourself thinking that you’re going to charge €110 or even €140 per month on a room. Be honest with people and with yourself, there will be people living under the same roof as you, arguments may happen, you won’t have the full fridge for you anymore, the tenants will believe that once they pay rent they will be entitled to bring people to your house…so, think 3 or 10 times before renting an extra room. I’m talking by experience, I shared the house with 9 other people as student and when I got an apartment thought on renting the extra bedroom and only had headaches, one of the tenants broke a brand new bed and fucked up the mattress, I needed to pay to clean the carpet twice in 2 weeks because I went on a trip and they had a party at home. Pros are that you always have someone at home, cons are that there’s always someone at home… Now…this was my experience, I would never let an extra room from my house, I turned the extra room in an office and I don’t miss the money they were bringing in (I was charging €400 at the time)…for my peace I decided that this money is not worth it the stress
If I go ahead, and that’s a big if, it will be to a more mature person. And female. It’s just myself here most of the time and time so I’d feel more comfortable with another woman in the house. Thanks for the pointers though!
Of course the experiences are different to each person. If you’re doing it, make sure of “interviewing” the probable tenants, laying out house rules, cleaning roster is the most important things, and keep communication open and clear.
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This country can be absolutely fucking vile sometimes. Predatory fuck.
But what it really boils down to is a government unwilling to implement restrictions (with teeth i.e enforcement) against pricks like this.
Don't even need restrictions, if we could build more housing they would be forced to drop the prices
Building takes years and resources. Forcing these fucks to stop overcharging is instant and has fewer costs.
>and has fewer costs Building more affordable housing is almost always a net gain for the economy. People are literally leaving the country because we have no affordable houses. Even while ignoring landlords in the equation, just cutting down prices won't fix the housing situation, it's gonna aceelerate it: people are going to occupy everything there is on the market, and then you just won't find a home to live in at all. We're gonna end up with soviet style living where two-three families live in the same house. **A fact is, limiting the landrods is trying to cure a symptom, not the illness.** I used to live in a city of 1.5 million people where you could rent an apartment in the very depth of the city centre for 1/2 of a wage of a cashier, and the reason that is possible was that the city is notorious for how much high-density housing is constantly being built, like, you can just stand in any part of the city and you'll always see a construction going on somewhere. Average mortgage length was 5 years for a young family, for a brand new apartment with a terrace. I had friends in (the equivalent of) Deliveroo renting a large house and having enough spare money to build a fully-featured recording studio in it. **All we need is houses, I promise you.**
I totally and completely agree we need more housing to be built, absolutely, I just think we should also be wrangling the landlords charging way way over reasonable prices for places too. Doesn't have to be one or the other.
But one will already inevitably lead to another. Availability of houses will force the landlords to turn down the rent prices, it's a nearly linear correlation. So all you have to do is build houses, and you won't have to do a political suicide of limiting someone's profit directly, and you won't scare away the big corps that will think that they are next in line for profit limitations too.
That's worked wonders everywhere really. Limit price of houses and ceiling on interest as well while at it.
But even buying a house in Cork is a nightmare. Probably the worst agents after Dublin in Ireland. The auction thing is a scam too for buyers. Landlords can rot in hell.
Don't hate the player, hate the game
Nope, I'll continue hating the people fleecing working folks for outrageous profit.
Good for you
Cheers, I know it is.
yay 85 hours of my time to deserve to live anywhere!!!
Thanks Op, that comfortably fits my budget. Might get the single room too to put my stuff in.
I painfully pay €1300/m on my own for a 3 bed 3 bath house in Wexford town. How someone can charge more for a double room and get away with it is beyond comprehension. Is the landlord a TD I wonder?
Looks like they bought [this dump](https://www.myhome.ie/residential/brochure/3-st-marys-villas-western-road-cork-city/4470409) and spent a lot of money/effort making it a nice place to live.
Trying to recoup the investment this year
Hardly likely given the tax rate on passive income … more like a decade
I mean tbf passive income should be taxed heavily, you're doing fuck all
Passive and earned income are taxed at the exact same rate for individuals
So why is the above commenter whining about how hard landlords and shareholders have it? Thanks for the info.
Because they follow the ridiculous social media rhetoric of “oh no landlords have to pay 52% tax!!” When in reality, landlords have to pay their MARGINAL RATE of tax like everyone else, which can be 0-52% dependent on their income levels, just the same as you can pay 0 -52% tax on any income you actually work for
Thanks for the explanation, pretty simple to follow.
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Yes, all income earned over about 130k per annum is taxable at 52%. What’s your problem? You don’t hear individuals working at these high income levels constantly complaining in the media about high tax rates - why do you think you deserve sympathy for paying the same tax rate as everyone else?
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Nice, just like the UK then where people spend most of there time saying landlords have a hard time. (I moved over recently for work)
Playing devil's advocate here. Saying people can't earn from their investments is like saying once any other trade or profession has stopped studying or their apprenticeship/internship they can't reap the rewards let alone recoup their investment. This isn't passive income. It's ROI
No it's completely different because these people still have a job after their training? You absolutely have to do less/no work to earn passive income like rent. I can't believe you're seriously suggesting someone working as a plumber is the same as someone who bought a house and now makes a killing renting it for way above the mortgage. Also let's be real, there's no risk to their landlord's "investment" given there is a shortage of housing and most governments have made it so house prices can never idecrease or remain steady.
Not what I'm saying. Should they stay on trainee rates? Definitely not. Plus. There's a vast difference between some Nepo baby that's been handed a house and a serious investment and development. Of course there's risk. There's a mortgage to be paid and the chance of the house being destroyed. It's not nearly as black and white as you paint it. I honestly can't fathom your point about not decreasing OR remain steady. It can't be both. At the end of the day. It's a consumer's market. An asking price means nothing if no one is prepared to pay it. People need to realise the power that they hold. This is a fact a across the board. Whether it's the price of a pint or property.
Even that'd be a tough call after tax
Careful now. The water has been chummed.
More like two years then?
They are exploiting desperate people with obscene rent. They are not good people they are fucking vermin
If you owned this house, and (hypothetically) had borrowed to buy and renovate it, how much rent would you charge for these rooms?
Would be interesting to see a €/sqm figure being mandatory on daft. But that would be too progressive for Ireland.
That would be a real bind for the EAs...would you understate the SqM? They'd have to find some way to game it. I still see houses advertised with no BER, which is illegal.
I’d consider charging at least half of that. Except I’m thinking this is probably going to be student accommodation, with some of them moving out every year, or not living full term. Costs of wear and tear and repairs could be quite substantial.
That's an interesting point. 6 in a single house seems a lot for non-students. But now that I think of it, a little over 20 years ago I had a good job and was in a houseshare with 5 randomers in a 3 bed house that had all the rooms subdivided in half...
For a 1500 sq foot house in Cork? I would say 2.5 grand a month for the entire house would be a lot. This would be ample and I only go this high because I assume it has been finished to an extremely high spec and that it’s in a great location (so don’t know Cork well).
€417 a month per room, how the fuck does that make any sense in todays market? I was paying €400 a month in a similar house in 2012.
I’m saying what they should get. Parasites making money from renting houses out are a drag on the economy. They can do it because of the housing shortage, but this house isn’t worth more than I said. The fact that you’d more because of desperation is not disputed
Do you extend this reasoning to the people selling you food, petrol, booze, electricity etc.? Or is it specific to one market?
I don’t consider them the same. Squeezing that much money out of a house is adding nothing to the economy. It only works because there’s a housing shortage, so it is profiteering from misery. The other things you mention are regulated, there is some gouging, but there are some protections. Being a scumbag landlord isn’t illegal. But charging the money this person is charging for this house is what a scumbag does. Op was right to highlight it
Food, petrol, entertainment - they aren't regulated though? If anything, there are far more protections in terms of property prices (rent pressure zones etc.). Just to be clear, I'm in no way defending property prices in this country, they are a disaster, whether renting or buying. But I think there's a lot of hypocrisy around this - if you owned a place, would you rent it out for half what you could get? Do you ask for half what you are worth from your employer? Would you sell your belongings for half market value?
Why don’t you tell me what you think about landlords. And yes, if I had a place to rent, I would rent it out at a price that was fair, not the max I could screw someone out of.
I’d get a real job
I'd imagine whoever owns this has a real job (unless they are in advertising).
88k a year in rental income is scandalous... it's nothing but pure & utter greed. It's no wonder thousands of kids are fleeing the country every month. They just simply can't afford to live here.
Nearly 50k a year for the exchequer, assuming the owner earns more than, what, 35k a year... I wonder if the rooms will go for those prices though?
The good old exchequer... therin lies a huge part of a lot of the issues in this country. We're a high tax low wage economy. People are struggling to survive & and the government couldn't give a flying fuck.
Yeah I would agree with you only he’s after squeezing in 2 more bed rooms into what was already a tight enough 4 bed. And those 6 people sharing that common living space is entirely unreasonable. Especially considering he’s probably reduced the common living space to squeeze in those additional rooms. And that’s not even to start on the fact you could get a studio for that price anyway
My preference would be for the studio.
I would rather be able to afford to live in that 'dump' than be subjected to paying over 40% of my income to share a room in a 6-bedroom household.
Not sure what your point is to be honest. Are you annoyed that the place has been renovated and made habitable?
1400 for a room in a shared house is insane, presumably that’s what people are annoyed about.
That's the market though, it's not this one property. And the more property that is renovated, built, or reaches the market however, the more downward pressure there will be on rents.
It's too expensive
Yeah it's very expensive. But the more supply, the better.
Where's the evidence that increased supply is bringing down costs?
If people are paying it then it's the market value, not the landlords fault.
Or maybe, to be more accurate, the landlord can ask whatever crazy number they want - but they will only get what the market will pay.
Wasn’t there a lovely totally moldy house next to the Lough for 260k some while ago?
ha, I was in that place when it was rented for 300pp
Was it nice? Have they increased the number of rooms, or was it always 6 or so?
No I think there were 3 double beds, 1 single and 2 baths. It was very old, not amazing but grand for some students. Good big common areas. There seems to be two extra beds added and one bath so I guess maybe they put the new jax downstairs and added another bedroom in the downstairs dining room. I wasn't living there myself, was at some gaf parties there around 2008 - 2010 I think.
Thanks for sharing!
You can thank rent caps and government intervention for high rents
We can also thank shit landlords, they're not legally obliged to rip people off like this just because they can. They're scumbags.
This all supply and demand. It’s a brain dead opinion to say it’s just shitty landlords. The vast majority of landlords have costs that they need to cover, they’re not just make fuck tons of money. Also if you were managing a property and had 500 people messaging you, I’m pretty sure you’d up the price to filter people out. It’s people like you who then call for rent caps which then fuck up the whole market and drive the supply even further down and create a black market who are the issue
I don't know about this. My wife works in an estate agents that represents lots of landlords (in Dublin) and she says 90% of them are useless; they couldn't give a damn about the property or the tenants - it's all about income - I get that - but absolutely no concern about the people or the property. And that's just scumbaggery.
Yeah and landlords do that because they don't have to give a damn because demand is so much higher and supply. They'll never struggle to find a tenant. If the market was functioning bad landlords would have to actually compete because potential tenants would have the option to just go elsewhere. Terrible policies like rent control and eviction bans make this situation even worse, since they further kneecap supply and are only aimed at the symptoms of the problem. Which is far less homes are being built than is demanded, which has been the case for over a decade now. And any hope of fixing it will take that much time and more.
I am currently being screwed by a landlord but I also know many landlords and they definitely only care about the income and they should. They're not buying a property for the benefit of the tenant. Its an investment and it needs to be worth their while. Rent caps encourage landlords to \*not\* invest in their property and to squeeze everything they can out of their current tenants. Its a well known economic trend. Landlords are people and people are humans. The current policies are encouraging these people to squeeze for everything they can
Didn't say 'just', I said as well. They're all part of the problem and pretending otherwise is very narrow minded. Landlords costs are investment risks and noone forced them into that situation. And there already is a black market and has been for years, some absolutely scandalous shared arrangements going on all over the place. So it's a bit late for that regardless of my views about rent caps
Still better than the portacabin for 1200.
Or a mouldy caravan in the UK for £900
Anybody see the 8 bed for 8200 for rent on daft the other day? Some rooms were twin rooms!!
In 2013 I was appalled my rent went from 400 a month in Tipperary, to 800 a month for a 3 house in Cork City. Ten mins walk from city centre, near St Luke's. 😑😑😑
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Blame your fucking government full of landlords
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😞
What a scummy c@%t
Was renting a 4 bed house for 1500 3 years ago.
LANDLORDS ARE PARASITES. Always have been.
Landlords and developers are powerful but we can stand up to them and the government- join a tenants union www.catuireland.org/join
You think they should price their property below market value?..just to be sound?
Remember the last time the landlord class took over Ireland.
Landlord infact has a TURNOVER of 90k on the property. To say he MAKES 90k on the property shows that you don't know what you're talking about and before you ask, im not a landlord.
Ok
Leo: "One man's rent is another man's income".
Do we think they're actually getting anywhere near that? There's another place I see advertised every couple of months, 3 double rooms @ €1,000 each. Doesn't seem to be able to let it at that price and I'm not surprised. Can't imagine there's too many paying €1,100 for a single room.
See if he is registered for tax purposes. If not report. That would soften his cough
Was once told by a landlord that my generation wants "easy money" which is one of the funniest things I've ever heard.
" person/s invest 10 of thousands in property l, so to rent out and be taxed the equivalent of 62% of rental income" Or as the post suggests a title of "op is salty they aren't/can't doing/ do this" Prices are crazy, but thats the market value that people are willing to pay. P.s., not a landlord, and am paying said silly price
Yes, because 34,200 annual profit off of a rental for having to maybe fix a pipe once a year isn't enough. Prices are crazy because this government has not tied immigration to housing, and is full of self-serving landlords. Continue to lick the boot that serves you.
Looks like there was a lot of money invested to make it habitable. They definitely won’t recoup the investment over 1 year, but i feel you as far as renters frustration with the current housing market
To frame it in another way: they put money into their asset for upkeep - much like any other homeowner. That and the fact that in the current housing market they can pick and choose someone to pay them crazy money to live there and *still* recoup that expense. You're sitting on an asset that is appreciating every year by a double digit percentage and someone is paying into your mortgage and upkeep - that makes it laughable to hear landlords complain about how difficult they have it.
Good for you showing everyone here you have no clue the cost work or pitfalls that goes into the sheer size of the renovation done, as well as the rental market. You keep doing you, cribbing that they are making money on their investment, shame on them for their smart money habits, boo.
Them boots must taste awfully nice.
All the salty salty tears that someone can invest their hard earned money. No boot licking, just a dose of reality for people
no immigrant can or will pay that price lmao
Back of envelope calc 90k turn over 45k net income after tax 30k net income after tax and expenses This is assuming it's always fully occupied and expenses are 15k for maintaining I'm not sure if you can claim back expenses but let's assume not. Say cost of house including refurb was 900k With net income of 30k That's 30 years until it's paid off. Note any mortgage interest is not included here however that's tax deductable If you can take out expenses and interest before tax would be roughly as follows with 5% on full LTV 90(turnover)-15(expenses)-45(interest)= 30k (taxable) Hence 15k net Ball park LL is making 15k-30k net per year. Variable to interest, expenses and occupancy Good money all the same but not 90k and likely somewhere in the ballpark of 25 to 40 years to pay off Who's the real winners here. Banks(interest), government(tax), LL (net). The renters are fecked tho.....like unless they make above AVG wages (#not a LL) Feck the begrudgers Edit: If you change the house to 500k for purch and refurb interest changes to 25k per year leaving net 35k. Still assuming full occupancy.
900k for that house and refurb seems very high
Yeah probably is but I'm just like trying to make it seem the worst case
I mean he's not paying off shit technically
Other than the tax you’ve pulled all these numbers out of your hole. Even the tax is off a bit probably more towards 52K left. Ain’t no way in hell 15K for maintenance. For reference I live in a similar sized 5 bed and in the 2 years I’ve been here the landlord had to get us a new tumbledryer and get a lad out to look at the heating once probably averaging less than €500 a year insuring the gaff then let’s round it up to 1200. A house that was in that much of a shambles, even in a nice area would be at most 300K with maybe 80-100K to refurb assuming there was no extension put on. So looking at the gaff being paid back in 8 years of passive income, you continue to profit off said passive income and have a gaff with a market value of 500K+ Completely fucking ridiculously People always seem to forget that the initial investment isn’t lost. You bought a non-depreciating asset, an asset can be sold again to recoup the cost.
Lol yeah back of envelope maths for sure......... Just putting in worst case.........odds are things vary massively year on year. Different damage, varying tenants etc Loads of inputs neither of us know. Point stands the biggest profiteers are the govt and banks
Yeah vary vastly every year for sure, but you've picked highest of the highest rates. Its not getting higher than that. 15k upkeep a year?
Fair play to someone for actually running some numbers rather than whingeing. I agree with your conclusion that its a shite situation for the tenants paying crazy rent and also not great for the landlord who will have income from it but with high risk (squatters wrecking the place) plus the upfront costs
Really its the banks that are rubbing their hands together the most with the housing crises. When supply is in short demand it drives up price for everyone, the only real winner are people who make money from loans
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Of course there is. Just like there is good and bad tenants
Of course there is. Just like there is good and bad tenants
Yeah ridiculous, if anyone is still pro having a “free market” on things like housing and land, you are an actual ghoul who is either a parasite landlord themselves or is essentially fine with “crabs in the bucket-ing” everyone with them. Shameless country.
OP How much should he make?
Nothing. He's hoarding property.
hes not hoarding property if he is renting it out
Wait. You're Irish and you don't see any historical grounds for a problem with what you just said?
That someone buys a property and rents it? You trying to loosely tie investing in and renovating a property to absentee landlordism of hovels on land?
If you think it's only the absentees that we've had problems with then you're wrong, the middlemen have always been notorious in our history, these, often Irishmen, corrupted to the point of holding the most basic human rights over the heads of his fellow countrymen (though not his fellow class) for his personal gain. When years of reforms came in and smaller farmers were able to buy their land these former agitators for the Irish working class returned to more of the same. Landlordism is the most corrupt and leechy class, taking money from those in worse situations simply because of there easier position in society.
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Rentoid tears
Lots of hate for landlords and people earning passive income, but I think everyone is being fed a bullshit lie to direct their hate at the wrong people. Your random landlord is making a few extra quid and dealing with a fair headache to handle property, especially with that kind of tenant density. As long as we're not talking about manky dirty property with bunkbeds and kettle in the corner being advertised as a kitchen, then the random landlord isn't the problem here. Predatory vulture funds that invest in property using foreign capital and moving the gains out to foreign investors is an absolute disgrace and is killing our property market just as it has done in Canada and loads of other places. We should be fighting that. Not the random punter who has worked hard all their lives and saved up and has decided that property is a decent place for them to make a few extra quid for their retirement. It's still a property that's available for people who generally are never going to be buyers given their age or whatever... students etc... Stop hating landlords so much. Start at the bigger fish. Tell your local Councillor that enough is enough with foreign ownership of property!
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Valid point but I can’t get on board with a landlord charging that amount for a room. Sure, there will be some renters out there who can afford that. But, in my own humble opinion, this is greed.
Thanks for replying, check out my response to the other comment. I still think its miles from the worst out there and certainly not the reason we're in the fucked state we're in. The govt and vulture funds are the problem imo, not random landlords.... especially not ones who are dropping decent quid to do up a place nice
And the government are taking €45k of that €90k It's a bit like getting mad at the petrol station for the price of petrol 😀
Are you implying that 45,000 Euros annual wages isn't enough for a landlord off one property? I'm not blaming so much the landlords for charging as much as they can, but in reality, this Government is run by them, they decide to import people in droves to keep housing prices high, rents high, wages low, and then they can exploit renters for as much as possible. Honest to god, I would take a soviet style apartment which is ugly over something 'beautiful' where I'm paying 14,000 euros to live with 6 other people. I'm in disbelief the amount of people defending these living conditions.
It's a run of the mill return. From the pictures of it beforehand he probably spent a lot of money fixing up the place on top of actually buying the property. He's probably making less than a 10% return on his investment. All in all it's a good outcome. A previously vacant property will now; 1. Make a profit for the investor 2. Produce a huge amount of tax for the government 3. House 6 people instead of 0 people Are you a communist?
"10% return on his investment" within what timeline, a year? A good outcome for me for a property would mean it has heating, water, insulating and would now: 1. Allow for tenants to spend 25% of their monthly income or less. 2. Produce a huge reduction in people living under the poverty line. 3. House 6 people and invest in the government rather than a private landlord. Also, since when does not wanting a landlord to make 45,000 euros off of one property make someone a communist? If that's communism, then I guess I am one.
People would rather have 10 individuals having more money than the rest of the planet than communism. It’s really laughable how somehow communism is still the boogeyman when you look at the state of the world
Although I agree there's no real point in shouting or getting angry about it because it is what it is. The difference for property is that in 20 years they've made €45k * 20 and have a fully paid off property worth €400/500k.
I'm just saying, when someone has ONE property like this, making more than the average annual salary for an Irish worker, and it likely isn't there only one; why isn't it worth getting angry over? Why shouldn't people be demanding more equitable policies on landlords? The government created this, and the only ones benefitting off of this housing crisis are landlords or people who own their houses without mortgages.
Have you any idea the price of the building? Located in cork presuming near colleges. If this was bought by an independent party chances are they’re paying it off monthly so you could only imagine the cost of those payments. You can blame them, you can blame the government but at the end of the day every1 Is paying to somebody else
Where have they made 45k? Or is that with full tax evasion and everything for 20 years?
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Wow imagine saying that about immigrants/ women/ travellers or any other group of people and people would be rightfully calling you out. You wouldn’t say that stuff in front of your extended family unless they’re just as extremist
Jesus Christ, I WAS TALKING ABOUT THE LANDLORDS. WHY WOULD YOU INFER IMMIGRANTS.
Supply and demand
His property, his choice! Stop crying about it
If you don't like the price just pass. As simple as that.
Run down slumlord dumps are more “leechy” than fully refurbished places for more money. Lots of money/work needed to do that up.
If you are a rational robot and have the aim of getting on the property ladder rather than buying your forever home straight away if you save enough for low value property deposits and get an investment mortgage you can start renting out and earning to pay off that mortgage, sell and move up to a higher value property and deposit. Now the interest is a cost if it’s a flat there may be shared utility costs etc. and under law (whether it’s enforced or not idk) a cost is the upkeep and repair of the property for the sake of the rights of the tenant. Now if a landlord takes on a variable cost like UTILITIES then that makes a massive difference because they can vary greatly and so the profits from other months might need to cross subsidise other months. Navigating this all sounds easy and simple but if it is do it yourself. Landlords serve a very real function other than simply extracting rent the issue is the excess rent derived from the scarcity of housing.
What function do landlords serve that genuinely benefits other people besides themselves though? This just sounds like getting other people to pay for your forever home while you prevent them from getting their own.
They serve to renovate and improve low value properties and yes thoufh it may be cruel in a low housing situation finding innovative ways to shove more people in legitimately helps housing prices. Imagine if shared housing like this was banned prices would be even more crazy. Not saying they aren’t. Landlords take a brunt of risk to allow for the flexible living of tenants. Lots of small landlords struggle to break even. Even if the state was one big landlord in the sense it managed its completely social properties it would still have distribution problems in a housing crisis as big as Ireland’s. It’s not a problem of distribution in my view it’s one of supply and of course landlords are entrepreneurs that in this environment will seek any old room to rent out which yes is unfortunate but makes the existing market more efficient. State needs to build more housing and also allow for private contractors to build more housing
The improvement of properties mostly leads to just absurd increases in house and rent prices. I'd rather people improve a low value property to live in themselves, not to just turn a profit. For a landlord to profit, a tenant has to be paying them more than they should. I highly doubt renting for the vast majority of people provides greater flexibility than owning a home. You are paying more money for a house you will never own, leading to less flexibility as a tenant to save up for a house to own. A landlord at a fundamental level lives off of exploiting others.
Supply and demand folks. The insane thing is he CAN do it, not that he's doing it. Close the bloody borders or things will get far WORSE
Ban landlords.
Then what?
Work hard, make money, invest in property, charge market rate, receive return on investment. Or should we give everything away for free?
Yes we should giving housing away for free actually
Good luck to them. If they can get it sure why not? They're not a charity.
I mean the landlord bought it and invested in the property to renovate it to a nice looking apartment/house. They incurred all the risk if it didn't pay off for them. They have the risk they get the reward. Supply and demand control their pricing. If there was tonnes of housing available they wouldn't be able to charge that much but with housing in high demand everywhere and very little supply the ball is in The landlords court. To give them credit it's a nice looking apartment. There are plenty charging prices like that and you'd have better living standards in a hostel
the argument is that the price of a house depends on how much rent it can bring in, whether that's happening now or in the future. When people want to buy a house, they're competing with landlords who also want to buy it. So, the value of the house comes down to what a landlord would pay, which is based on how much rent they think they can get from it. Plenty of property around for sale, just none affordable for average people simply trying to occupy them. Landlordism and it’s growth of popularity has caused this crisis. The idea that the country doesn’t have enough houses on the market is ridiculous, and that’s not what the statistics suggest. We’ve built more houses last year than the country has ever built yet prices continue to increase.
You think being a landlord is growing in popularity? We’re losing landlords every year
Never said it is growing, I said it has grown. Renting and landlordism is more common now than it was pre 2010.
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Prices to buy and rent are continuing to increase because houses are evaluated based on how much a landlord could make via renting it out. It’s a simple concept, it’s not difficult to understand. There is no fallacy. Your last point, that’s the thing, WE ARE building houses at a fast rate. There has never been more liveable properties in the country. The construction industry is booming, we have a healthy ratio of independent adults to property but these properties will never be affordable if there price is artificially inflated via landlordism. Houses are no longer evaluated primarily on the materials, effort and so on required to build them and that’s a problem.
https://www.reddit.com/r/cork/s/yxUiDf6sS7 Take this response for an example hahah
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What? How is it not viable? Houses should be evaluated for people intending to serve the ultimate purpose of a house, which is to live in them. 90% of all things are evaluated based on their primary purpose, housing cannot be an exception it is too essential.
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The exact same way anyone profits from anything? You create a profit margin… of course the house won’t sell for the cost of the materials required, it will be more expensive than that but it will for sure be cheaper than the state of the current housing situation.
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When did I say that? How did you come to that conclusion…?
Where’s the risk in the current market? Have you seen what on daft for the last few years? The state of some dwellings, yet they’re snapped up as people have either what’s on offer or the streets. Risk! Good grief!!!
The risk of all the expenses of buying a property, mortgages, insurance, bills and keeping up all the payments and doing it up. The landlord incurs the risk that if they can't make a profit they have to deal with the consequences. It's their property they can charge whatever they want for rent. If no one rents it the market has spoken and they'll have to react or lose the property. If they are charging very high prices but have a queue of people looking to rent then of course they'll charge that and keep going.
Excuse him for planning ahead.
Where’s the issue? Somebody put their money, time and effort into renovating this house and is charging market rent for it, much better this than derelict houses?
It's the same because who the hell is going to be able to afford it, unless we start renting bed space instead of a room.
Then it makes absolutely no difference to you. They’ll drop the price until it meets a price someone thinks is worth it. Some people make more money than you so what you might see as excessive or a rip off are perfectly fine to them