Buy to Let advice

mdebets

hfallada wrote: »

A) if the apartment is in anyway expensive. People won't rent it to HSE. But what can one single tenant in a block do.

you should always look into a sinking fund before buying an apartment. If the sinking fund its too little don't buy.

C) evict the tenant. 98%of tenants are fine. The other 2% cause hassle and when evicted that's usually the end of them

A) While it might be a rare occurrence, it could still happen. And the right (or better wrong) tenant can do a lot of damage to the surrounding apartments (imagine drug user/dealer with a big mean dog). It not necessarily need to be a HSE tenant either, just imagine your neighbour would rent his apartment to a prostitute or a brothel.

All well and good, but that doesn't mean that an appropriate sinking fund at time of buying is still appropriate at the time it is needed. Imagine if some owners stooped paying management fees after you bought.

C) Evicting tenants cost time and money. And while you might be entitled to sue the tenant afterwards to get it back from the tenants, they might not have the money to get it back. In the meantime your costs continue to run and if you are not able to cover them for this time (which might be likely if it is your first apartment and you have put all your money into it and expect it to pay itself through the rent), yo are risking to not only loose your invested money, but also loose part or all of the borrowed money.
While I agree with you that most of the tenants are good and the above scenario is very unlikely, that isn't any good to you, if it happens to you, because you get the 1 in a 1000 tenants that is the real bad apple.

Jaybor

mdebets wrote: »

Good for you that it worked out.
But now look at the following scenarios.

You have just bought your first apartment with 10,000 Euro in cash and two years down the line the following happens:
a) your neigbour decides to rent his apartment to the HSE and they move in a very anti-social tenant and you can't rent your apartment because of this.

b) a very expansive repair is due (e.g. lift breaks down), the original builder is no longer in business, so you get no warranty, and the management company has to pay for the repair itself. You now find also out that the sinking fund is not big enough for this, as some owners haven't paid their management fees for a while now?

c) You find out that your tenant, who you think was a really nice guy, with a well paying job in middle management is not really that nice, but has parties all the time, the apartment now looks like a bomb exploded and he isn't really into paying rent or moving out.

Would your story still be the same or would you now still be in a lot of debt without having the asset in return and a very long way to go, to pay it off?

Its a good thing nothing like those things never happened isnt it.
I suppose ANYTHING could happen. But it didnt.

You forgot to put. Tenants friend goes mad and kills him leaving bloodstains all over the walls.
Or what about Truck crashes through the wall wiping out the whole block.
Or Flight that disappears reappears over Dublin a month later and crashes into apartment.

And there are a lot of crazy things that could happen to wipe out my contributory pension fund in the morning too. But im not going to list them.

Tell me this. Do you ever cross a road? It must take you ages.

mdebets

Jaybor wrote: »

Its a good thing nothing like those things never happened isnt it.
I suppose ANYTHING could happen. But it didnt.

You forgot to put. Tenants friend goes mad and kills him leaving bloodstains all over the walls.
Or what about Truck crashes through the wall wiping out the whole block.
Or Flight that disappears reappears over Dublin a month later and crashes into apartment.

And there are a lot of crazy things that could happen to wipe out my contributory pension fund in the morning too. But im not going to list them.

Tell me this. Do you ever cross a road? It must take you ages.

No your just putting silly arguments forward.
The difference between your and my examples is that your examples haven't actually happened in Dublin in the past (there was actually a case of 2 in Germany a few years back, where a truck crashed into a house and ended up in the living room of a family).
My cases on the other hand actually happened at least once in the last year in Dublin (do a search in this forum and you'll find threads about most of them).
So again, you have consider to the probability of these events happening and the potential loss that comes with them and then decide if you take the risk or not.
Putting your head in the sand and pretending these things never happen to you can only end in tears if (not when) they happen.
Its basically a gamble with low risks but high stakes. Everyone has to decide for themselves if they want to take this risk or not, but they should do this as an informed decision.

The_Conductor

As the OP has been banned- I am closing this thread.

Regards,

The_Conductor