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vman7

Rent In Belfast

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Been looking recently at apartments to rent in belfast area but can someone explian to me why rent is so high!?!

Everywhere i look it seems to be a minimum of £700-£800 for a 2 bed which i think is ridiculous! Not only are they expensive but the furnishing doesnt seem to be up to any high standard and couple that with only being allocated 1 parking space!

Is this due to speculators purchasing these apartments at such high prices that they need this high level of rent to cover their mortgages? Am i just behind the times and this is the normal rent price in belfast?

I have also looked at lisburn direction and they are looking £650 for apartments in thaxton village!

I cant see how these rent prices are sustainable! how do people afford this and have enough to live a life?

Average monthly wage after tax must be around £1200 (correct me if im wrong) so that is a third of someones wages to rent a room in a 2 bed apartment. That is ludicrous!

Anyone else out there feeling my pain?

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Been looking recently at apartments to rent in belfast area but can someone explian to me why rent is so high!?!

Everywhere i look it seems to be a minimum of £700-£800 for a 2 bed which i think is ridiculous! Not only are they expensive but the furnishing doesnt seem to be up to any high standard and couple that with only being allocated 1 parking space!

Is this due to speculators purchasing these apartments at such high prices that they need this high level of rent to cover their mortgages? Am i just behind the times and this is the normal rent price in belfast?

I have also looked at lisburn direction and they are looking £650 for apartments in thaxton village!

I cant see how these rent prices are sustainable! how do people afford this and have enough to live a life?

Average monthly wage after tax must be around £1200 (correct me if im wrong) so that is a third of someones wages to rent a room in a 2 bed apartment. That is ludicrous!

Anyone else out there feeling my pain?

I agree £650pm for a 2 bed apartment seems very high. Checked on Propertynews.com for Thaxton and seen two 2 bed apartments, one at £575 (which they say is let) and another at £550pm (available). That is more than I thought. I would have expected a 3 bedroom house for that. I see the houses are almost £700 pm or £950pm!to rent.

I see there are 2 bed apartments (don't look the same) on sale (Hagan) for £102k in the same development and 3bed houses for around £130k. I know I am a VI but is this not a sign that, in places its cheaper to buy?

Average Sal @ £23.5k -Personal Allowance £6,475 and 20% tax on remaining £17k =-£3405 income tax.

National Insurance: none on first £5,720. 11% on remainder = -£1,955

Net pay = £23,500 -£3,405 -£1,955 =£18,100/12 =£1,500 per month (for single income household).

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The rents in that Anthrax village in Lisburn are a joke. You used to be able to get unfurnished in Lisburn for £450 per month, but nearly everything is let this past while which is pushing rent up a bit.

This is not something I looked at before and we did have a discussion on this about a week or so ago.

Thinking about this again - if people put off buying houses - say 10,000 or 20,000 per year. These extra 10 or 20 thousand go instead to the rental sector. Now we all agree that the boom created alot of new and some unexpected landlords with spanking new houses to rent out. I would say for a few years there was a surplus of rental stock on the market. There will continue to be additions in the apartment sector as people continue to be forced to complete. Just type in Obel to Property news rental section and received a list of 50! apartments (cheapest at £650 per mth)

As I say, I never really looked at this before. From PN there are 534 apartments for rent in Belfast and 812 houses. In the houses you have to go to page 16 (10 per page)to see a property at sub £700 pm. Page 28, or should I say the 280th property before we get below £600 pm. After 700 properties I find a page of sub £400 per mth and I would not be overly happy living in some of the houses shown there (and I have lived in some rough dives in my time).

I must start asking the agents is the rental rates going up and the time to rent going down.

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I know that the sister in law and her husband were looking a house in Lisburn to rent. Both on minimum wage so most they couls afford was £450. Everything was gone...EAs kept saying they would need £550+. They have ended up in a 1 bed apartment in a real bad area and are paying £425 per month unfurnished...best they could get and its only guarented for 6 months. Seems rents in Lisburn are defo rising and nothing sits too long.

EDIT...I sound like a rental bull lol

Edited by NIOWEN

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Alot of these high rents are trying to justify the high selling price for 'future investors' and trying and convince banks they should give out BTL mortgages because the business plan is SOOO attractive. You will find that if you offer >£100 less its quickly accepted, negotiate hard or walk away.

I'm not an expert on Belfast but look around there are plenty of well priced apartments, East Belfast for instance £500 for a good 3 bed apartment was a recent closure example for a mate.

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I just signed a 1 year lease on a 2 bed in the east (Dundonald) for £550. (Unfurnished)

It's a fairly recent build, has good space, and comes with 2 allocated parking spaces.

Similar apartments in the same development are on at £139k, so although I do kinda agree with BelfastVI that in 'some' places,

buying is cheaper, well at least no more expensive, it's certainly the exception rather than the norm.

I'm too lazy to do the math, but I'm sure it would cost me around £800 - £900 p/m to buy the place I'm renting, even if I could get a mortgage!

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£500/month should get you a decent 2 bed apartment within a reasonable distance of Belfast city centre. £550 plus for a 3 bed semi. Thaxton prices do seem on the high side. Renting is probably still cheaper but the gap is closing. The rental sector remains flooded with money from HB, I feel sorry for the couple above, the current situation is totally unfair.

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There are currently 1,363 properties 'for rent', in the Belfast Area on PN.com. To me that would appear an oversupply. I will try to revisit this in a month or so to see if this figure is rising or falling. I cant imagine landlords would hold out for months and months for an unachievable rent.

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Alot of these high rents are trying to justify the high selling price for 'future investors' and trying and convince banks they should give out BTL mortgages because the business plan is SOOO attractive. You will find that if you offer >£100 less its quickly accepted, negotiate hard or walk away.

I'm not an expert on Belfast but look around there are plenty of well priced apartments, East Belfast for instance £500 for a good 3 bed apartment was a recent closure example for a mate.

totally agree with the offer £100 less and see what you get. I did the same and got a 4 bedroom house with garden in Belfast for £600 (was re-painted and re-carpeted etc in colours I chose) and he was originally asking 700 a month...when he saw I looked after the place I was in at he time(next door) he realised I would look after the place and accepted 600..result :)

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I have called a couple of these estate agents and they dont seem to be budging on the price for Obel ( i dont want to live here, was just curious). This means to me that people are actually paying this ridiculous rental price for a small city apartment with one parking space.

Ideally i would like to live in stranmillis/malone/lisburn road direction and i know i would have to pay a premium but i still think £800 for a 2 bed apartment is too expensive!

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The only data points i have is that I rented a 2 bedroom apartment with parking space in stranmillis for 450 a month. In 1996, and that was direct from the owner, who doesnt have fees. I can rent a nice 3 bedroom house in the SE of england within striking distance of london(60 mins on a train) for 900 a month....

edit at the time those apartments were 65k which i thought was expensive. So on a yield basis that puts a 2 bed apartment in stranmillis at around 130k intrinsic value.

Edited by DotBomb

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I have called a couple of these estate agents and they dont seem to be budging on the price for Obel ( i dont want to live here, was just curious). This means to me that people are actually paying this ridiculous rental price for a small city apartment with one parking space.

Ideally i would like to live in stranmillis/malone/lisburn road direction and i know i would have to pay a premium but i still think £800 for a 2 bed apartment is too expensive!

£800 per month for a 2 bed apartment is too much. This is the equilivent to the interest on a £240,000 loan, at 4%.

It would cover the repayment mortgage on the average house. Its almost £30k for 3 years.

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I have called a couple of these estate agents and they dont seem to be budging on the price for Obel ( i dont want to live here, was just curious). This means to me that people are actually paying this ridiculous rental price for a small city apartment with one parking space.

Ideally i would like to live in stranmillis/malone/lisburn road direction and i know i would have to pay a premium but i still think £800 for a 2 bed apartment is too expensive!

If you read the Obel tower thread, you can see that 'residences are now being taken up', reading between the lines I read that to say they are moving slowly. This is one example of a boom time development not suitable for the town, its not that great quality and I doubt the market for it here anyway. If you can afford it you are more likely to be older and appreciate a bit of quiet, privacy and space. Why take one of these when you can have a 4 bed detached 15 mins away by train or car.

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There are currently 1,363 properties 'for rent', in the Belfast Area on PN.com. To me that would appear an oversupply. I will try to revisit this in a month or so to see if this figure is rising or falling. I cant imagine landlords would hold out for months and months for an unachievable rent.

Just checking on this again.

November 2010 All properties for Rent 1,363 (Houses only 853)

January 2011 All properties for Rent 1,358 (Houses only 801)

Looks like more apartments on the market and less houses. Overall number available remains the same.

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either way Belfast VI rent is still the same. I pretty much check out whats on offer everyday on propertynews and i am amazed at the prices they are looking but not as amazed as the fact that they all become let agreed (all the nice apartments anyway- stranmillis warf, the bakery, park royal etc) within a couple of days so people must have £700-£800 to rent!

At this rate ( and please forgive me for saying this on this site) i may have to look at buying an apartment as £700-£800 would cover a mortgage!!!!

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either way Belfast VI rent is still the same. I pretty much check out whats on offer everyday on propertynews and i am amazed at the prices they are looking but not as amazed as the fact that they all become let agreed (all the nice apartments anyway- stranmillis warf, the bakery, park royal etc) within a couple of days so people must have £700-£800 to rent!

At this rate ( and please forgive me for saying this on this site) i may have to look at buying an apartment as £700-£800 would cover a mortgage!!!!

I am still struggling to understand the assumption that renting should be cheaper than paying a mortgage. NIHE have a lot to answer for.

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I am still struggling to understand the assumption that renting should be cheaper than paying a mortgage. NIHE have a lot to answer for.

Took me a while to see where you were coming from, and I think I understand. Most people, including professional investors in office blocks look at 'rental cover', allowing for voids, just to cover the interest and management/running costs. The risk they are taking or gambling upon is capital appreciation. Similar to shares. The dividend is a bonus.

Looking at housing and leaving the NIHE out of it for a moment. Renting should, in a normal market be cheaper than a repayment mortgage in purely monthly outlay.

If you are in business and need a office you can buy or rent. Over 25 years (assuming that is the full repayment of the loan)you would spend less in rent than than you would spend in interest and repayment on a loan to buy the same property. You will also have the normal ownership costs on top of that. From a purely cash-flow point of view it is more cash efficient to rent and therefore many go that way. However at the end of the 25 years you have to continue to rent whilst with the other route you now own the building outright. The same applies to a house.

When Renting becomes more expensive that a 5 year fix mortgage, surly questions would pop into someone's head about the strategy of continuing to rent. They may have other motives for renting but most will re-look at their choices.

The NIHE have to compete in the market for rent as they have firstly sold most of their own houses and secondly went down the most inefficient route imaginable to now build their own. With the result that their tenants overspill into the private sector. These tenants have to compete with other people for these houses and at the moment there are more people renting than for many years (as they haven't been buying). The NIHE contributes different amounts up to, in some cases 100% of the rent. If the landlord can get more elsewhere he will go there. Its a open market. I agree with the caps introduced in mainly London, where it is ridiculous that Social tenants can insist that they must have a house in Notting Hill, for example. I equally believe that it would be equally ridiculous for the NIHE to pay the going rent for dwellings on the Malone Road or Cultra etc.,

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Average monthly wage after tax must be around £1200 (correct me if im wrong) Anyone else out there feeling my pain?

Good site for calculating Net Income

www.listentotaxman.com

Gross annual income of £23,500 = £1511.60 net per month. This is assuming that no Pension deductions are made, or other deductions such as child care vouchers, Student loans etc.

Average deduction for pension contributions would be approx 6% annual salary which would reduce net income to £1417.

Average salary of £23,500 - £25,000 in Northern Ireland is debatable, but plenty of that has been exhausted in other threads :rolleyes:

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Everywhere i look it seems to be a minimum of £700-£800 for a 2 bed which i think is ridiculous!

Is this due to speculators purchasing these apartments at such high prices that they need this high level of rent to cover their mortgages? Am i just behind the times and this is the normal rent price in belfast?

Yes ... big loans were taken out to buy these properties, high rents are therefore charged to cover the repayments and any rate charges. Rental rates have dropped since the boom so many will be feeling the pinch. They may very well advertise looking for high rents but whether they get them is a different matter.

£700-£800 for a 2 bed is extortionately high. I am renting outside Belfast a 3 bed semi for £550 ... I even think that is too high.

Why not rent outside Belfast, surely the travel costs to get in and out of Belfast would work out less than the higher rental costs you would have to pay to stay in Belfast.

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Took me a while to see where you were coming from, and I think I understand. Most people, including professional investors in office blocks look at 'rental cover', allowing for voids, just to cover the interest and management/running costs. The risk they are taking or gambling upon is capital appreciation. Similar to shares. The dividend is a bonus.

Looking at housing and leaving the NIHE out of it for a moment. Renting should, in a normal market be cheaper than a repayment mortgage in purely monthly outlay.

If you are in business and need a office you can buy or rent. Over 25 years (assuming that is the full repayment of the loan)you would spend less in rent than than you would spend in interest and repayment on a loan to buy the same property. You will also have the normal ownership costs on top of that. From a purely cash-flow point of view it is more cash efficient to rent and therefore many go that way. However at the end of the 25 years you have to continue to rent whilst with the other route you now own the building outright. The same applies to a house.

When Renting becomes more expensive that a 5 year fix mortgage, surly questions would pop into someone's head about the strategy of continuing to rent. They may have other motives for renting but most will re-look at their choices.

The NIHE have to compete in the market for rent as they have firstly sold most of their own houses and secondly went down the most inefficient route imaginable to now build their own. With the result that their tenants overspill into the private sector. These tenants have to compete with other people for these houses and at the moment there are more people renting than for many years (as they haven't been buying). The NIHE contributes different amounts up to, in some cases 100% of the rent. If the landlord can get more elsewhere he will go there. Its a open market. I agree with the caps introduced in mainly London, where it is ridiculous that Social tenants can insist that they must have a house in Notting Hill, for example. I equally believe that it would be equally ridiculous for the NIHE to pay the going rent for dwellings on the Malone Road or Cultra etc.,

I agree that decisions and choices have to be made when comparing monthly rents against mortgage repayments however there are other factors influencing reconciling a differential.

1. Access to credit. The LL has all that seen to, a tenant has no concerns that way.

2. Mobility of address, depends on lease terms and liquidity in capital markets.

3. Exposure to repairing obligations in respect of both bricks and mortar and fixtures, fittings and contents.

4. Capital movement cannot be assumed as upwards only.

If I thought about it properly I could go on and a balanced discussion might even determine that rents should be higher/lower than repayments.

The post I replied to was a spot target and struck an old nerve of mine that it is not safe to assume that renting should be cheaper.

Regards

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we are a young professional couple and would like to live in belfast in an apartment. we have no requirement for a 3 bed semi-detached. it is also easier to maintain an apartment.

i know £700-£800 is very expensive but thats what is being asked and they are being rented out so what i would like to know is how people afford this?

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I've driven past Obel on many occasions and have yet to see more than 5 lights on. Granted that's the Custom House end but to me these apartments are most certainly not renting out at this figure. Well not in any sort of numbers.

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Rents rising?

The last house we lived in in Belfast (June 2008 to March 2009) is up for rent again:

For rent...

We rented in to £550/mo. It is advertised for £550/mo now.

A huge increase, indeed!

Was a nice house, BTW...

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Rents rising?

The last house we lived in in Belfast (June 2008 to March 2009) is up for rent again:

For rent...

We rented in to £550/mo. It is advertised for £550/mo now.

A huge increase, indeed!

Was a nice house, BTW...

Good to get some anecdotal evidence of what is happening.

Edited by BelfastVI

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  • 261 Brexit, House prices and Summer 2020

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