to rental tenants has again raised the issue of private landlords selling up and leaving the market, intensifying the already significant shortage of properties on offer. On one side, landlords are clearly happy to sell following a strong recovery in prices. But why sell a relatively safe, income earning asset when other investment options generally either offer poor returns or are risky? Let’s look at what we know.
Again based on recent trends, a further 550 or so properties may have been withdrawn from the market in the first half of the year as the landlord or a family member was going to live in them. While the family member could be paying a rent, many of these properties are effectively going off the rental market.
While this is portrayed as “cashing in”, there must be other issues here. Why sell an asset which can generate a decent and secure return when it is difficult to find other homes for cash in risky financial markets? Landlords must also abide by rent pressure zone rules limiting annual rent rises. This can leave some landlords securing rents that are below the market level achieved by new landlords in the same area — creating a kind of dual market. Of course the flip side is that market levels can be unaffordable for many tenants.The Tax Strategy Group Papers published this week point out that there are policy trade-offs here.
IrishTimes Because the REITs are taking over courtesy of FineGael and fiannafailparty and they have been squeezing the smaller landlords out for at least a decade. Prtb is just another tax and now they are inspecting 20 year old houses and telling you to spend unnecessary money😤
Because a big bucket of good ol'crisis is on the way.
IrishTimes Maybe they know what's coming? Maybe they don't want to be socialists? Maybe they see govt interference decimating their market? Maybe they're right?