A new report has raised serious questions about the buy-to-let property market.
In an analysis of rents over the past five years Davy Stockbrokers says investors in some parts of the country would make more by investing in savings accounts than buying accommodation to rent.
While everybody is well aware of the extraordinary escalation of the cost of buying homes and apartments, less attention is paid to what has been happening to rents.
Over the past five years property prices have increased by 52% across the country, while rents have actually fallen by 2%.
As property prices continue to escalate the gap between buying accommodation and what landlords can get from tenants is widening.
Recently rents in Dublin and Cork have begun to recover, but property prices are increasing four times faster, making it much more difficult for the rent to cover mortgage repayments.
Davy Stockbrokers economist Rossa White says some investors are afflicted by boundless optimism.
