16 thoughts on “Jumpy

  1. NTG

    Yes – definitely a mistake.A one bed around temple bar hasn’t been €800/month since God was a boy.

  2. Small Wonder

    Interesting… that’s at least as much as you’d have to pay me to live in Temple Bar

  3. Yorick

    Let’s say, for arguments sake, we use the rule of thumb that one shouldn’t spend more than 30% of one’s income on rent.

    To afford €850 per month, one would need to earn €30,600, after tax. If rent is €1,250 per month, an after tax income of €45,000 is required.

    Considering the current housing crisis, and that median disposable (i.e. after tax) income in 2012 was €17,702, and that the description of the property as a ‘large apartment’ is highly contestable, I think it’s reasonably safe to say that charging rent of this kind, for an apartment of this kind, is immoral. So, even if it’s the norm in Temple Bar, it really shouldn’t be.

    Then again, who cares about morals, we’re back baby, etc.

    (Open to correction on any of theses figures, and on my conclusions – I’m not an economist, and I’m bad at sumz.)

    1. Robfromdublin

      That’s the market though. Nothing about morals. If someone on a high income thinks it’s worth it they’ll pay it. If not, they won’t.

      Your sums do scare me a bit. Is that really disposable income after tax?

      1. Yorick

        I agree, sure, if somebody with money to throw down that black hole wants to do so, good luck to them. It’s folks who are priced out of the market that I’m concerned about.

        The median disposable income figure (€17,702) is from the CSO (although I obtained it from a certain broadsheet (small b!)) and is for 2012. The €30,000 & €45,000 are based on my own calculation of the minimum disposable income required to ensure one spends no more than 30% of (disposable) income on rent.

        The 30% rule is a rule of thumb I’ve heard mentioned a good few times, and it seems to be prevalent on the internet (as per my quick search methodology…!). It’s just a rule of thumb.
        I spend 37% myself, although heating is included in that. I know, I’m a failure!

    2. AlisonT

      Hardly immoral if people have the perfect option of living a bit further from the city center. it’s not like people don’t have a choice.

      1. Yorick

        The perfect option?! Hardly. Rental properties are overpriced. It’s a confluence of supply and demand, as I understand it, and it’s the case throughout the city. Commuting also adds its own costs, both financial and psycological, so relocating to somewhere outside the city won’t necessarily result in a better quality of life.

        I did a quick search online for 1 bed properties to let in Lucan (similar to the apartment advertised above). Of 3 I saw, one was indeed much cheaper, the other two were roughly the same price. Also, in the case of two people living together, particularly with the job market the way it is at the moment, it’s not always viable to live in a satellite town. Others would be dependent on public transport, for a myriad of reasons (e.g. disability), and it’s hardly the best network, making it more important to live within the city.

        Fair enough, many people may have choice in how they spend their money, but not everyone, and I think €1,250 for a modest (which must be stressed) 1 bed apartment in Temple Bar is way overpriced, relative to the average person’s earnings. I think that’s profiteering, and I think that’s unethical. Housing is a human need after all; we’re not talking about chocolate.

        Just my opinion, everyone has a different ethical framework. I TLDR’d myself. G’luck.

  4. Annie

    Am I the only one who thinks that even at 1,250, it isn’t all that crazy – have experienced far higher for one beds. It is literally jaw-dropping what passes for premium rental accommodation in this city – in any other European city, Irish premium would equate with basic spec.

  5. Russell Steed

    I imagine that the 850 is from the last time it was listed; the advertiser reactivated the ad (at 850) and then updated the price.

    Not actually a jump of 400 in one day, but a 47% rent increase from last let is quite a bit.

  6. Mr. T.

    Letting Agents are pushing landlords to increase rents, even when the landlords are not so keen.

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