Estate Agent says Donegal is moving towards a rent culture

first_img Google+ Twitter By News Highland – October 8, 2018 RELATED ARTICLESMORE FROM AUTHOR Important message for people attending LUH’s INR clinic Facebook House KeyA Donegal estate agent says there appears to be a shift towards a European-style rent culture in Donegal, despite it being cheaper to purchase a property in the county.Brendan McGee, of Franklins, also says there’s no housing shortage in the county.In a commentary written this week he estimates there are around 1,500 houses privately being rented in Letterkenny. An average four bed semi-detached in the Cathedral town costs around €750 per month to rent, while the same property would have mortgage repayments of around €675 a month.Mr Mc Gee says Donegal is very different to other areas…………..Audio Playerhttp://www.highlandradio.com/wp-content/uploads/2018/10/brenmcgee1pm.mp300:0000:0000:00Use Up/Down Arrow keys to increase or decrease volume.Press release in full -Homes cheaper to buy but rent culture risingA leading local estate agent believes there may be a shift towards a European-style rent culture in Donegal, despite it being cheaper to purchase a property in the county.Brendan McGee, of Franklins, also says there’s no housing shortage here, in contrast to media reports of spiralling prices and desperate house hunters queueing for properties in Dublin, Cork and Galway.“It’s a different story in Donegal,” Mr McGee said this week.“There is adequate supply across the county and sale prices here are still at figures less than the cost of construction.”Quoting figures from DAFT.ie, Franklins states that there are currently almost 100 houses on the market in Letterkenny (55), Ballybofey (26) and Buncrana (12) in the €100,000-€150,000 price category.However, Franklins estimates there are around 1,500 houses privately being rented in Letterkenny. An average four bed semi-detached in the Cathedral town costs around €750 per month to rent. Mr McGee says the same property would have mortgage repayments of around €675 a month.He adds: “Historically, Irish people were home buyers, but now rents are higher than mortgage repayments, even in less urbanised counties like Donegal.”It is understandable that people are renting more in places where they can’t afford to buy, but in Donegal it’s is actually cheaper month-on-month to buy a property than to rent one. That’s not to mention capital appreciation.“Around 90% of our current stock would be much cheaper to buy than to build – you could not buy a site and replace those homes for the sale price currently offered.”Admitting there are obstacles to buying, such as stricter central bank lending rules plus a requirement for a sizeable deposit, he added that the banks are telling them every day that they are open for business regarding mortgages to first time buyers.”It’s almost like there is a fear among potential first-time buyers about entering the property market. Is it a case of them being traumatised by the crash and the experiences their parents may have had? Whatever the reason, the numbers speak for themselves when it comes to renting versus buying.”With rental values increasing at a steady rate over the past few years, it is widely accepted this is the more expensive ‘choice’.”However, from last week’s DAFT.ie figures, you can see that availability is not a problem in Donegal with many options in various locations. Renters should bear this in mind because along with the fact that lower monthly mortgage repayments are available it means there couldn’t be a better time to buy.” Facebook Pinterest Previous articleRenewed hope for cinema plans in Donegal TownNext articleBlood donations sought in Inishowen News Highland Twitter Google+center_img Community Enhancement Programme open for applications WhatsApp News, Sport and Obituaries on Monday May 24th Loganair’s new Derry – Liverpool air service takes off from CODA Estate Agent says Donegal is moving towards a rent culture Nine til Noon Show – Listen back to Monday’s Programme Arranmore progress and potential flagged as population grows WhatsApp Pinterest AudioHomepage BannerNewslast_img read more