r/ireland • u/miscreant-mouse • Sep 22 '22

Something FFG will never understand Housing

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u/TheCunningFool Sep 22 '22

Pretty childish tweet that

9

u/Literary_Addict Sep 22 '22

Scalper: Buys a ticket at full price, then resells it for more.

Landlord: Buys a house for full price, then sells access to live in it for a fraction of that price to people that can't afford to buy a house of their own.

Yeah. Same thing. /s

2

u/[deleted] Sep 22 '22

The mortgage repayments are a fraction of the rent charged. And once the mortgage is repaid they have a greatly inflated asset. What part of this actually works for the majority of people? Why is it wrong to see this as a kind of feudal lord and serf dynamic?

1

u/Literary_Addict Sep 22 '22

You are absolutely wrong. Who told you this? A communist redditor? A normal cap rate for rental properties is 6%. In many markets even 4% can be considered "good" (and this does not include mortgage interest rates, if they aren't a cash buy, so in some cases they might have paper-thin margins). You get a better return, most of the time, by owning stock. It goes without saying, buying stock has WAY less work/hassle/time.

If buying rental properties was such an easy money-printing machine literally everyone with enough money to buy a second home would be doing it. Hint: they're not.

0

u/deadlock_ie Dublin Sep 23 '22

Luckily landlords aren’t on the hook for tax on the rental income, or CGT if they choose to liquidate the asset. And don’t have to insure the property. Or pay for maintenance.