We do actually need a rental market you know. I would agree that better controls and curbs need to be in place.
A rental market fine but the majority of that rental market would need to be heavily regulated and capped or controlled by the state.
A swathe of that rental market is chicken and egg. People can’t afford a place as too much of their salary is going to landlords.
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With evaluation of LPT valuations coming up soon isn’t it in the goverments best interests to have high property value to extract more tax?
There’s a view amongst the left that PPR is not wealth that should be taxed. A proper functioning property market taxes property and encourages older people to downsize and free up houses for families too.
Abolishing CGT exemption on all PPR would make a difference in how people view houses too. It’s mad that because of an accident of fate people can realise hundreds of thousands of profit on a family home and pay no tax on it.
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100%
I’d say monthly rental payments in the likes of Dublin (pre Covid anyway) were probably about 150% (or more) of what the equivalent mortgage repayments for the property would be. That is just wrong on so many levels.
Unless you come from a family of money, I just don’t know how anyone who has been renting in Dublin could afford to buy while living some decent standard of life.
How would someone renting in Dublin for years save up a 50k deposit? Unless you’re earning over 100k you would seriously struggle. I had a decently paid job in Dublin but was coming out of it with fuck all after rent, bills and trying to live some form of an active and decent life.
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The market in Dublin for houses in 700k - 900k bracket at moment is bonkers. There’s nothing to buy in that bracket and lots of people with money to spend in that range.
Lots of double income couples making 200k plus
To get a mortgage for that kind of house. You would need
a) A deposit of 70k-90k minimum
b) A salary of 180-230k.
That’s beyond so many people to begin with.
If a person/couple are renting their own place they are likely coughing up 25-30k a year in rent and that could be quite conservative, before bills.
The only way I see these type of people getting homes is if they money behind them from their parents who can stump up the deposit of 60-70k or more to allow them qualify for a mortgage.
A single person buying a house in Dublin (who has been renting previously) at the minute simply has to have money behind them from someone else. Even if you’re on decent enough wedge of 70-80k alone, you’d only qualify for a mortgage of 250-300k and would need to find the balance for a deposit yourself which would probably be about 150k. Single people cannot do that without some rich parent behind them.
We’re also at a stage now where families are smaller for last 40 or 50 years and lots of inheritances driving wealth and house buying ability
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That’s certainly a problem.
Very little case anymore of some lad hitting off to the city from humble beginnings and making a good life for himself. It’s now a lot about needing that trust fund behind you to set you up.
I don’t know how some young working professionals do it really if they are enjoying a good social life. It will have to come to halt sometime soon as I’d say parents will be paying for their kids into their 30s now.
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That is exactly the problem facing society.
What’s goin to happen to people who can’t afford to buy and end up renting forever,how will the afford rent on the old age pension?
That’s where we’re heading unless something is done.
The HAP scheme was FG’s invention to make landlording a business model.
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That’s the real worry for lots of people. Terrifying almost.
The HAP scheme also hammers young working people who don’t qualify who compete against people whose rent is subsidised.
A lot of Germans never buy, I think the family have an opportunity to rent after you. I presume savings etc go toward rent after retirement
Yeah lots of couples with kids still renting heading towards their 40s.They’ll never qualify for a mortgage even though the rent they’re paying would pay a mortgage no bother.What happens when they hit 65?
It’s been a disaster in terms of sorting the housing issue out. The majority of working people won’t qualify for it.
It has however been a huge benefit to landlords.
That’s fine if you live in Germany
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And there you go.Thats it’s in a nutshell