How hard to rent a 3 bed apartment in D4??

sudzs

Just wondering what sort of demand there is for 3 bed apartments at the moment. My friend has one which he might rent out but don't think he'll bother if it's going to be hassle. Anyone any clue??

Thanks!

Pepe LeFrits

Well I'm looking for one.

jesus_thats_gre

How difficult is it to get tenants for a 3 bed apartment in a once of nicest and conveniently located parts of the city? You serious?

sudzs

Well I dunno anything about it! That's why I asked!!! :rolleyes:

It's out near RTE... is that still considered conveniently located?

MadsL

Social Welfare accepted?

alienhead

well as long as the pi55 aint been taken with the rent, shouldn't have any trouble letting it.

donnybrooks a great location.

i'd say, 1,300 / 1,400's fair, depending on size, exact location etc...

sudzs

What's the pi 55???

Actually think he's thinking along the lines of 2,000+. It's HUGE and fully refurbished. All new carpets, beds, furniture.... 2 bathrooms.... parking... leafy and v. private!

Is that mad money?

sudzs

PI55..... PI$$... geddit! duh!!! :rolleyes:

hmmm

In the 2000 range I'd say he is only going to be able to pitch to the corporate market imo. And they will demand top quality.

babytooth

sudzs wrote:

Just wondering what sort of demand there is for 3 bed apartments at the moment. My friend has one which he might rent out but don't think he'll bother if it's going to be hassle. Anyone any clue??

Thanks!

would he sell it

2k a month is a bit optimisitc unless you get corporate.....

2k a month and you'd be looking at a worth of about 400k, current marktet maybe 375k...that gives him a small yield over the risk free rate.
he gets a return of 5.33% where risk free is 4.15...not much of a return but not bad.


would that be about right ppl?

antoinolachtnai

That wouldn't be right. If you put it in the bank you would have no capital gain (even if the market goes soft you'll still have some capital gain over a ten year period). There is also the prospect of rental increases.

The other thing is that you can gear the investment in a house. If he's still paying for the mortgage, he's never actually put up the 400k - if he's a third-way through his mortgage (guess) he's only ever invested a hundred thousand, maybe less.

2k/month sounds a bit optimistic, but it's certainly possible. It depends on what kind of tenants you are prepared to accept really. If you take students, you'll get it easily, if not, it will be tougher. (Tip: get the best tenants you can.)

ronbyrne2005

A 3 bed apartment in Donnybrook sells for around 700k. I'd sell if I was him. Rent of 2k a month is only a gross rental yield of 3.4%, then you have insurance maintenence etc of the apartment and any taxes, meanwhile prices are unlikely to rise(they are falling in many parts Dublin) and could fall substantially with all the apartments coming on stream over the next few years. With inflation at 5% if the apartment does'nt increase by same figure or more its depreciating. He should then place the proceeds into a well diversified portfolio like all the rich do. If selling frees up extra cashflow for him and he has taxable income he should invest the saved cashflow in a pension which is a great tax efficient scheme which all the wealthy maximise their use of.

antoinolachtnai

The principle he would invest in this diversified portfolio would also depreciate so that is moot.

There would also be charges to manage this diversified portfolio.

If he did want to do this, he could borrow 500k on the strength of his house and invest it in the portfolio.

What evidence do you have that all the rich invest their money into a well diversified portfolio?

I'm not saying that property is a perfect investment and I wouldn't advise anyone to go out and buy one of these apartments as a BTL, but good property in Dublin 4 isn't a bad thing to hold.

ronbyrne2005

antoinolachtnai wrote:

The principle he would invest in this diversified portfolio would also depreciate so that is moot.

There would also be charges to manage this diversified portfolio.

If he did want to do this, he could borrow 500k on the strength of his house and invest it in the portfolio.

What evidence do you have that all the rich invest their money into a well diversified portfolio?

I'm not saying that property is a perfect investment and I wouldn't advise anyone to go out and buy one of these apartments as a BTL, but good property in Dublin 4 isn't a bad thing to hold.

You'll see how D4 property can fall (especially apartments and even some period houses) in next few years, but we can agree to disagree on that one for the time being.
Its a well known fact that the rich in Europe and America invest in a diversified portfolio including property(usually trophy properties that rarely fall in value) Art, Shares, Bonds,commodities,priavte companies etc. Maybe the nouveau riche Irish have much invested in property but reports were released in media last year that high worth Irish were moving their investments out of property into shares etc.
A well diversified portfolio would'nt fall in value if Irisih property collapsed. A diversified portfolio can be structure so it never falls by same amount as the property market or stock market and theres little correlation between German blue chips and Irish property!