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Smell the Fear

Rental Prices On The Up?

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I'm being turfed out of my current reasonably priced rental and am looking for another. I was very close to buying but couldn't do it....my guts were turning inside out no matter how much I tried to rationalise it. My gut feel is another 20-30% drop over a time period which could be anywhere between 2 and 7 years in mu opinion. If I could buy a place I liked at very close to RV I would do it, but that seems impossible at this point.

So my mind has to focus now on rentals. I'm looking for a nice house in south belfast, preferably spacious and well decorated. What I'm finding is that they are very thin on the ground at the moment and that asking prices for those that are available are roughly 20% higher than similar properties on propertynews.com with "sale agreed" displayed. Is this time of year a traditionally quiet time for rentals? When is peak availability?

Have we renters reached a critical mass where we are now pushing up rental prices? So far I am finding resistance to negotiation on these asking rental prices and I am time limited as I need to move within 3-4 weeks. If I have to pay top whack then there is actually not much difference between renting vs. buying some of these properties (even taking rates bills into account).

Slightly worrying situation and making me think I may possibly have made a mistake not buying recently......

On the other hand, I expect the NI economy to worsen which will surely conspire to drive rents down. Despite a recent BelTel article stating that NI would be less affected by recession than the rest of the UK, I have a feeling the incoming conservative government will be ruthless in dealing with NI.

When the time comes to buy I will have a good deposit and be ready to make my move when the right property comes up. I have come to the conclusion that buying a house is something I only want to do when I am very happy with the house and can envisage living there forever. I have only viewed one property that met these criteria and it recently sold over 10% above asking price (unbelievable.....) - I was viewing it with a mind to offering 20% under asking, which would still have been around 35% above RV.

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Most landlords in South Belfast are holding out for students at the min rather than accept lower rents.

Still bargains to be had though. Try gumtree and the classified adds in BelTel.

I got a very nice 2 bed off Ormeau road, for £400 pm from LL originally looking £550 :blink:

I'm not even gonna consider buying for 2 years at least

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i rent in bt9 and have managed to bluff the landlord for a good while to keep the contract rolling. so am on the look for a bt9 rental while we speak while keeping one eye on buying

all the quality stuff seems to go through agents - gerry oconnor etc - and is always expensive and does generally get snapped up.

ive offered below asking and eventually the property has gone for an amount higher than my offer

definately lack of supply of quality rental stuff in bt9 vs demand

much is just rented to students so pretty poor

very hard to find a quality property well furnished and when you do it costs this;

http://www.propertynews.com/brochure.php?r...&sort=added

for sale 550k dropped to 385k now for rent for 1200 a month

i was looking for the flat im in now a year ago and for sure rents are not down on last year in bt9 from my experience

weird as i also rent in london and rents are well down there for instance

Edited by getdoon_weebobby

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STF - if you're setting roots down by buying then you don't really have to worry about any further falls in prices. You won't be going anywhere for a few years so by then prices won't have collapsed to the point where you are in negative equity.

If you see something you like then buy it imo. A nice deposit and as minimal mortgage as you can manage, is preferable to renting somewhere that's surrounded by students or is £1200 for a 2 bedroom flat as bobby showed above...

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i rent in bt9 and have managed to bluff the landlord for a good while to keep the contract rolling. so am on the look for a bt9 rental while we speak while keeping one eye on buying

all the quality stuff seems to go through agents - gerry oconnor etc - and is always expensive and does generally get snapped up.

ive offered below asking and eventually the property has gone for an amount higher than my offer

definately lack of supply of quality rental stuff in bt9 vs demand

much is just rented to students so pretty poor

very hard to find a quality property well furnished and when you do it costs this;

http://www.propertynews.com/brochure.php?r...&sort=added

for sale 550k dropped to 385k now for rent for 1200 a month

i was looking for the flat im in now a year ago and for sure rents are not down on last year in bt9 from my experience

weird as i also rent in london and rents are well down there for instance

So a rental yield of 3.45%, that is still a total rip off and over valued property. Historical fair value (note not under valued) is north of 6%, that price has a long way to come down...and to think it was just over 2% when the property was at £550000. Crazy price levels.

Who in the right mind would pay that...well, I guess bubbles never end with any rationale decisions.

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STF - if you're setting roots down by buying

Bringing the tone down somewhat.... I am rather suprised by the thread given how STF feels about NI. I would have thought he would want out ASAP :P

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So a rental yield of 3.45%, that is still a total rip off and over valued property. Historical fair value (note not under valued) is north of 6%, that price has a long way to come down...and to think it was just over 2% when the property was at £550000. Crazy price levels.

Who in the right mind would pay that...well, I guess bubbles never end with any rationale decisions.

i missed out on a 985k property rented out at £1300. thats some yield.

going to see that £1200 flat on Mon actually. will not be offering north of £1000 tho.

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I look for unfurnished family homes and they are hard to come by but don't necessarily move fast when they do come up. I think prices, generally, have stalled. They shot up towards the end of the boom and then fell back. We negotiated money off our rent when our last contract ended but I certainly don't feel confident about doing the same this time around!

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I have the pleasure of having amature landlords who use a letting agency that also know very little for an agency. I claimed, on the off the cuff way, that I was entitled to put up sky dish, etc....and they just agreed with it. I also asked the agency to forward an email to the landlord asking for them to go 1/2's with me on a phone line installation...told the LL that it was a "normal" thing and the LL's believed it....:P

sometimes if you have a LL that's not overly clued up you can get more for your buck than normal :D

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I have the pleasure of having amature landlords who use a letting agency that also know very little for an agency. I claimed, on the off the cuff way, that I was entitled to put up sky dish, etc....and they just agreed with it. I also asked the agency to forward an email to the landlord asking for them to go 1/2's with me on a phone line installation...told the LL that it was a "normal" thing and the LL's believed it....:P

sometimes if you have a LL that's not overly clued up you can get more for your buck than normal :D

Landlords and agents always play the dim but nice role. Until it's time to return your deposit, then all of a sudden they know what you should and shouldn't do.

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I'm being turfed out of my current reasonably priced rental and am looking for another. I was very close to buying but couldn't do it....my guts were turning inside out no matter how much I tried to rationalise it. My gut feel is another 20-30% drop over a time period which could be anywhere between 2 and 7 years in mu opinion. If I could buy a place I liked at very close to RV I would do it, but that seems impossible at this point.

So my mind has to focus now on rentals. I'm looking for a nice house in south belfast, preferably spacious and well decorated. What I'm finding is that they are very thin on the ground at the moment and that asking prices for those that are available are roughly 20% higher than similar properties on propertynews.com with "sale agreed" displayed. Is this time of year a traditionally quiet time for rentals? When is peak availability?

With rentals you do need to move quickly to secure a place, do not hesitate to declare your interest but get the price sorted first and if anything comes up that is unpleasant like a poor EPC then renegotiate, but all the time listen to the agent when they say there is someone else interested. You can keep a first dibs on a house for a period, but if you negotiate too much and there are others interested then you are in a weak position, don't push it.

Having rented in London during the boom, I have learned to move at lightning speed and the NI agent was offset by this, luckily there was no other interest during my negotiation so I got a good deal, but then I am a very good tennant.

What is your budget? If you are looking at £500/month it is not going to be as good value as say £700. The higher you go the VFM increases dramatically, particularly above £600 IMO.

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I have the pleasure of having amature landlords who use a letting agency that also know very little for an agency. I claimed, on the off the cuff way, that I was entitled to put up sky dish, etc....and they just agreed with it. I also asked the agency to forward an email to the landlord asking for them to go 1/2's with me on a phone line installation...told the LL that it was a "normal" thing and the LL's believed it....:P

sometimes if you have a LL that's not overly clued up you can get more for your buck than normal :D

I thought a phone line installation (but not an account) was a legal requirement for renting.

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With rentals you do need to move quickly to secure a place, do not hesitate to declare your interest but get the price sorted first and if anything comes up that is unpleasant like a poor EPC then renegotiate, but all the time listen to the agent when they say there is someone else interested. You can keep a first dibs on a house for a period, but if you negotiate too much and there are others interested then you are in a weak position, don't push it.

Having rented in London during the boom, I have learned to move at lightning speed and the NI agent was offset by this, luckily there was no other interest during my negotiation so I got a good deal, but then I am a very good tennant.

What is your budget? If you are looking at £500/month it is not going to be as good value as say £700. The higher you go the VFM increases dramatically, particularly above £600 IMO.

have to agree. i missed out on an awesome crash pad by farting about haggling on price. if u think its awesome so will other people....

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Dear all,

Having scoured the local area for suitable accommodation in advance of ones pending nuptials i am pleased to say that i have found somewhere

that has exceeded my expectations!!!Having "missed" out on a few suitable dwellings i have secured a tenancy on a very nice if rather large property in

mid Antrim (county) area.Set within its own grounds it is very spacious albeit unfurnished and decor somewhat passe it is nonetheless a steal when viewing other properties in my locality.I did not haggle for said dwelling as i recognised a bargain when i saw it and i knew it would be snapped up soon.

I must say also that i am prepared to revise my opinion on EA`s and will say that they cannot all be tarred with the same brush.In speaking to one recently i was advised that in my position i should not consider buying for a time yet as better value can surely be had in a wee while.He gave me a few examples of falling hp`s and suggested that valuing owt today was nigh on impossible. He put it fairly when he said that in many cases people weren`t buying at silly prices because EA`s told them to just that that was what people bid houses up to.

Anyway i feel blessed after a stressful time trying to sort out some wedding plans and find a place to live that now i can look forward to deciding which wing of the manor we will live in!!!

Edited by redprince

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have to agree. i missed out on an awesome crash pad by farting about haggling on price. if u think its awesome so will other people....

So, after starting this thread I'll let you know the outcome. Am renting a very nice house which is twice the size of my current rental and of a very high spec. Landlord was initially not interested in negotiating but he cracked after a week and accepted 10% off asking rent.

I'm paying about 25% more in rent but the step up in space in quality is huge and therefore justifiable - no point in being miserable while I wait to buy! My outgoings are about 55% of what it would cost to buy the property on interest only mortgage. ;)

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Great news _ I hope you will be very happy there. You only need to furnish as many rooms as you need and use the rest to store your wedding presents. Good luck.

Smellthefear-thank you for that:(((

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Northern Ireland has perhaps the funniest rental market I've ever seen.

At the bottom to mid-range, properties seems about right in terms of asking prices. However, when you go to the upper-range, you get some bloody amazing bargains! A friend of mine is living in a 6 bedroom detached house in huge grounds with own entrance and a totally modernised house. All for a piffling £700 a month.

Northern Irish landlords are awfully nice to be subsidizing these people. Cheers, boys!

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Northern Ireland has perhaps the funniest rental market I've ever seen.

At the bottom to mid-range, properties seems about right in terms of asking prices. However, when you go to the upper-range, you get some bloody amazing bargains! A friend of mine is living in a 6 bedroom detached house in huge grounds with own entrance and a totally modernised house. All for a piffling £700 a month.

Northern Irish landlords are awfully nice to be subsidizing these people. Cheers, boys!

My take on that is that the bottom of the market is help up by Housing Exec policy on rent. They basically will pay £500/month for anything. Therefore that is the minimum rent no mater what the quality, many BTL investors are still taking advantage of this as they only need a slightly good bargain at the bottom of the market to make it work. A place of DCV around £50K will rent for only £40-50 less than one of £100k.

The rental market is very fluid, not affected by credit on housing, as you cannot get a 6x salary loan to pay your rent. While developers have paid big money for these big houses they cannot charge alot of rent of for them. It will go up and down with demand and the economy, but it is a very good measure of affordability unfortunately distorted by the HE at the moment at the bottom. Once they catch on it will create problem for many BTLers.

As a general rule any one should not pay more than 1/3 their salary on housing, otherwise there is not enough left to feed the rest of the economy.

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My take on that is that the bottom of the market is help up by Housing Exec policy on rent. They basically will pay £500/month for anything. Therefore that is the minimum rent no mater what the quality, many BTL investors are still taking advantage of this as they only need a slightly good bargain at the bottom of the market to make it work. A place of DCV around £50K will rent for only £40-50 less than one of £100k.

The rental market is very fluid, not affected by credit on housing, as you cannot get a 6x salary loan to pay your rent. While developers have paid big money for these big houses they cannot charge alot of rent of for them. It will go up and down with demand and the economy, but it is a very good measure of affordability unfortunately distorted by the HE at the moment at the bottom. Once they catch on it will create problem for many BTLers.

As a general rule any one should not pay more than 1/3 their salary on housing, otherwise there is not enough left to feed the rest of the economy.

Thats a surprise...It is unlike the government to distort the price fundamentals in any market :rolleyes:

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As a general rule any one should not pay more than 1/3 their salary on housing, otherwise there is not enough left to feed the rest of the economy.

... but, but, but if everyone does that house prices will fall by 60%-70% (as some people are predicting. ;) ) We need everyone to pay 2/3 of their income just to support current house prices. :huh: People don't need money for food, fuel, bills, a social life. :unsure: People need to pay all their income to the developers and banksters for an over priced house. <_< It's different this time ;)

Edited by Belfast Boy

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... but, but, but if everyone does that house prices will fall by 60%-70% (as some people are predicting. ;) ) We need everyone to pay 2/3 of their income just to support current house prices. :huh: People don't need money for food, fuel, bills, a social life. :unsure: People need to pay all their income to the developers and banksters for an over priced house. <_< It's different this time ;)

eye...

..large shower of sparks from computer as emoticon buffer explodes.

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