Rents going up?

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Alpineprince
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Rents going up?

Postby Alpineprince » Mon Feb 02, 2015 9:09 pm

I have been hearing more and more stories of landlords raising rents in 2015 by up to 20% and wanting to change over to Dollars! While I understand the landlords concerns (Devaluing Sol), I do not see a legitimate argument for changing to Dollars when all his costs with the possible exception of the mortgage are in Sol's.

I won't be effected until August 2015, but managed to convince my landlord tonight to keep it in Sol's and I have to pray the PEN reaches 4 to 1 by that time. My twin SIL's (young nurse's) just got hit with this (beginning March) so I had to intervene on their behalf. They cannot afford a 20% increase, so I will have to eat that as well, and I have been so enjoying watching my rent go down every month! If this trend is beyond Miraflores, it could portend an increase in RE prices as well.

anyone else seeing similar?


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Re: Rents going up?

Postby Lloyd007 » Mon Feb 02, 2015 10:46 pm

I have seen bog-standard ROOMS being offered at US$500 per month recently - totally absurd. Apartment rentals have been expensive for some time and seem to be going up a bit, which makes sense as buying gets harder and harder, a lot of people are turning to renting so demand goes up.

I rent a room in my apartment to a nice guy, a very large room, fully equipped at a very good price but value him as a good renter - who gives me no problems - much more than a few extra dollars. By today's prices I could certainly get a lot more for it if he left, but could I get an equally good renter in his place who gives me no issues at all? Probably not.

As for apartments, I don't know how people manage to pay such high rents... what do they do for a living?
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Guiri
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Re: Rents going up?

Postby Guiri » Mon Feb 02, 2015 11:46 pm

Jop..our landlord came up with a 200 soles rise a month "because the water bill (which is included) rose sooo much"!
Totally bogus..I asked him for the receipts of last year water bill and he never talked about the raise :lol:
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Re: Rents going up?

Postby Bobby » Tue Feb 03, 2015 9:13 am

IMO you have to distinguish between long term (generally in PE) and short term rentals (in USD) and furnished/unfurnished.
Tenants from outside (staying 1 year or so) don't really care if the sol is devaluating or not as they have USD in their pockets. Back in 2001 when 1 USD = S/. 3.25 rents in Miraflores where already in USD. Don't forget either that many Peruvians executives earn in USD. The opposite problem appeared when in 2011 the USD fell down to 2.55 soles (many landlords changed rents from USD to S/.).

In Miraflores I don't feel rental rates are increasing beyond inflation. However my landlord asked me a rise because he is paying each year higher taxes (arbitrios and predial). Finally,I've noticed in the one hand that more units are for rent but on the other end in the last 2 years I've seen a lot Spaniards and Colombians looking to rent.

In other districts I think rentals have increased quite a lot in soles.
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chi chi
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Re: Rents going up?

Postby chi chi » Wed Feb 04, 2015 3:23 am

Lloyd007 wrote:As for apartments, I don't know how people manage to pay such high rents... what do they do for a living?


They get in debt. They get more debt than they allready have.
More and more people stop pay rent at all.
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gringolandia
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Re: Rents going up?

Postby gringolandia » Mon Feb 09, 2015 1:39 pm

So strange to hear about rising rents. Everyone I've been talking to has been saying rents have been going down a lot due to a glut of housing.
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Guiri
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Re: Rents going up?

Postby Guiri » Mon Feb 09, 2015 11:46 pm

gringolandia wrote:So strange to hear about rising rents. Everyone I've been talking to has been saying rents have been going down a lot due to a glut of housing.

Who you are talking with?? Do you live in a parallel universe?? :roll:
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chi chi
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Re: Rents going up?

Postby chi chi » Tue Feb 10, 2015 5:33 am

gringolandia wrote:So strange to hear about rising rents. Everyone I've been talking to has been saying rents have been going down a lot due to a glut of housing.


I thinks it depends of the área where they are living in.

I noticed that the rents in Magdalena Del Mar are gone up a lot but the rents in San Miguel are still reasonable. (or like I would say ''democratically'' priced. :) )
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gringolandia
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Re: Rents going up?

Postby gringolandia » Tue Feb 10, 2015 2:11 pm

I may, in fact, live in a parallel universe from many who post here.

Most people I talk with here are somewhat affluent, so I hear things from that perspective.

So I should have said that I've heard that nicer apartments are getting cheaper.

And such apartments have already been quoted in dollars for a long time, so no change there.

I just rented a 3 br apt in a nice safe area with a doorman for $1350 for when we come to Lima (I prefer to stay at the beach house usually, though).
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Re: Rents going up?

Postby Smoke&Mirrors » Wed Feb 11, 2015 5:56 pm

Yes, rental prices for apartments in Miraflores and SI have lost a lot of heat compared to say 2011-12. Prices have remained flat or even gone down in some instances, from my experience and that of friends
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chi chi
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Re: Rents going up?

Postby chi chi » Wed Feb 11, 2015 6:34 pm

Smoke&Mirrors wrote:Yes, rental prices for apartments in Miraflores and SI have lost a lot of heat compared to say 2011-12. Prices have remained flat or even gone down in some instances, from my experience and that of friends


The demand for flats in Miraflores and San Isidro is lower than that there are flats offered for rent.

Open the Sundays' edition of ElComercio and it's full of adds for flats offered for rent in Miraflores and San Isidro.

The amount of flats offered in reasonably priced and popular áreas like San Miguel, Magdalena Del Mar, Pueblo Libre and Jesús Maria is smaller and by the time they appear in the newspaper they are probably allready rented out.
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Guiri
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Re: Rents going up?

Postby Guiri » Wed Feb 11, 2015 6:43 pm

gringolandia wrote:
I just rented a 3 br apt in a nice safe area with a doorman for $1350 for when we come to Lima (I prefer to stay at the beach house usually, though).
affluent...you mean "pituco" ? :D

Well...that was overpriced in former times and is still overpriced ,even when they stay at the same price. :lol:
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Re: Rents going up?

Postby Bobby » Thu Feb 12, 2015 10:30 am

chi chi wrote:
The demand for flats in Miraflores and San Isidro is lower than that there are flats offered for rent.


Statistics from Adondevivir and recently published in Gestion show the contrary...Now are these statistics biaised? I have no idea.
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Re: Rents going up?

Postby gringolandia » Thu Feb 12, 2015 1:30 pm

Guiri wrote:affluent...you mean "pituco" ? :D


I don't speak much Spanish, so it is unlikely I'd mean to use Peruvian slang.

Since there's a smiley face at the end I'm going to overlook that you're likely implying something derogatory since this slang seems to have negative connotations. Because we all know being rude doesn't count if you say it with a smile :D
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chi chi
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Re: Rents going up?

Postby chi chi » Thu Feb 12, 2015 8:33 pm

Bobby wrote:
chi chi wrote:
The demand for flats in Miraflores and San Isidro is lower than that there are flats offered for rent.


Statistics from Adondevivir and recently published in Gestion show the contrary...Now are these statistics biaised? I have no idea.


Buy El Comercio on Sunday morning, and call in the afternoon the ads that rent out a flat in San Miguel, Magdalena Del Mar, Jesús Maria or Pueblo Libre and everything will allready be rented out. (Unless it's grossly overcharged or a stinking, run-down hole.
Then ring the adds that rent out flats in Miraflores and San Isidro and most of them will still be available. Even if you call the adds by Friday or Saturday, loads of them will still be available.
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tupacperu
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Re: Rents going up?

Postby tupacperu » Tue Feb 17, 2015 8:11 pm

chi chi wrote:
Lloyd007 wrote:As for apartments, I don't know how people manage to pay such high rents... what do they do for a living?


They get in debt. They get more debt than they allready have.
More and more people stop pay rent at all.

Agreed: The financial/economic stress of over indebtedness.
. When the sol was on the rise and the dollar was falling 2008, my landlord attempted to change our contract after we had only been renting for a month. I was paying in dollars.

News of the day:

90% of Peruvians suffered financial stress in the last 12 months
Tuesday, February 17, 2015

ECONOMIA14:23
The founder and President of IFAYDI Eliane King, said that of the total percentage, 65% suffered from this kind of stress derived from a not-so-favorable economic situation.


Approximately, 90% of the Peruvian population suffered the so-called "financial stress" during 2014, primarily product of economic problems, said today the family Institute and the money (IFAYDI).

In this regard, IFAYDI Eliane King President, said that of that total percentage, 65% is basically produced by economic issues, such as debt or overdraft.
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tupacperu
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Re: Rents going up?

Postby tupacperu » Tue Feb 17, 2015 8:15 pm

gringolandia wrote:So strange to hear about rising rents. Everyone I've been talking to has been saying rents have been going down a lot due to a glut of housing.


Existing (lived in) rentals are going up (end of lease).

The vacant apartments are trying to get filled, they are going down.
You can negotiate a good price on vacant Apartments
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tupacperu
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Re: Rents going up?

Postby tupacperu » Tue Feb 17, 2015 8:20 pm

Image

And there you have it^^ Prices of Homes and Rentals starting to fall...

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