Recent reports reveal that the rental market is showing, albeit small, signs of stability. To the delight of some landlords, good quality rental property is in demand and rent rates have slightly but steadily increased since December 2009.
With this recent news, the worthy discussion on whether to buy or to rent has raised its head once again.In terms of asking prices, property is now a lot cheaper than during the Celtic Tiger reign and house prices are a lot more attractive now than three years ago. Commenting on the latest rental reports, PIBA, the country’s largest group of independent stock brokers said… “While it remains to be seen if the latest rental figures become a trend, nonetheless, the reality is that rental and house prices are now very closely aligned.” For example; “Nationally, the average house price is €213,183. Monthly repayments over 30 years on a 2.65% variable rate mortgage, based on a 90% LTV would be €773 while the average monthly rent nationally is €765”.
On the flip side, while Interest rates are historically low, the situation could be dramatically different in coming years. Along with rates, there is a new property tax waiting in the wings and the planned abolishment of the mortgage relief by 2017.
Have Your Say
- Is it now cheaper to buy than to rent
- And if so, how easy is it to secure a loan?