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Property developing/renting

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  • 28-10-2009 2:09pm
    #1
    castles
    Closed Accounts Posts: 13 ✭


    i have recently come into a sum of money and am thinking of getting into the property game.my plan would be to buy 3 propertys(all paid for in cash) and rent these out and if or when the property regains itself move into the development side of things i.e buying then selling for a profit.anybody have any advice experience ect
    all advice much appreciated
    thanks in advance


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    #2
    AARRRGH
    Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    I would not buy in Ireland.

    Couple of issues jump out at me immediately -

    1. Houses are still incredibly overpriced, so if you buy now you might be trapped in negative equity for quite a while.
    2. With rising emigration, will you be able to rent out the houses?

    As always, if you buy in a good location, e.g. next to a university in a university town, you'll probably be ok.


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    #3
    castles
    Closed Accounts Posts: 13 ✭castles


    i would of thought the market was still there for renting.depending on what market i was to aim for.


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    #4
    spockety
    Moderators, Education Moderators Posts: 5,468 Mod ✭✭✭✭spockety


    Where are you looking at?

    The rental market is saturated and bombing as bad as the sales market.


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    #5
    castles
    Closed Accounts Posts: 13 ✭castles


    i was thinking of aiming for people that get rent allowance with things the way they are at the moment.not quite sure at the moment.i believe prices havent fallen completly yet and are about half way there but am thinking that it is going to be long term anyway. if it goes into negitive equity surly it is bound to bounce back at the later stages and would be hoping to sell them for profit at that stage and keep developing more


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    #6
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    castles wrote: »
    i was thinking of aiming for people that get rent allowance with things the way they are at the moment.not quite sure at the moment.i believe prices havent fallen completly yet and are about half way there but am thinking that it is going to be long term anyway. if it goes into negitive equity surly it is bound to bounce back at the later stages and would be hoping to sell them for profit at that stage and keep developing more

    If you accept that this could be in 20-30 years time- then fine, off you go. Personally- if I had a sum of money at my disposal, I'd be chasing shortterm tax efficient investments- not residential property......

    There is a massive oversupply of rental property- in all segments, in the Irish residential property market. The rent-allowance is only serving to set a floor below which rents have thus far not fallen (rent-allowance is in fact considerably above what the going market rate would otherwise be).

    Educate yourself about the Irish economic profile- and likely economic developments in the short to medium term- and draw your own conclusions.


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    #7
    ronbyrne2005
    Closed Accounts Posts: 3,494 ✭✭✭ronbyrne2005


    If you have enough cash to buy three properties outright then you could instead invest that cash in a diversifed fund/portfolio. You can invest in European commercial property or any area that appeals to you. Putting all your eggs in the Irish property market is madness at this stage, all factors that drive prices and rents higher are reversing fast( migration,net incomes,unemployment,financing etc etc)


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    #8
    dblennon
    Closed Accounts Posts: 185 ✭✭dblennon


    I agree with Ronbyrne,

    the smart money would be to invest in a number of new REITs as they have too return 90% of the rental income.

    also there are a number of players IE. BNP PARI. currently setting up funds in the UK/London which are looking to return 7-9% rental yeild.

    the risk of the Irish market far outways the possible yeild return


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