Best ROI residential investment

handlemaster

With prices going ever up in Dublin. What are the best ROI residential areas outside of Dublin small towns etc included.

quadrifoglio verde

handlemaster wrote: »

With prices going ever up in Dublin. What are the best ROI residential areas outside of Dublin small towns etc included.

Not trying to be smart but if you need to ask people on the internet where the best places to buy investment property is then you should really reconsider investing in property.
The one piece Ill give you is buy for rental yields and not what the price will potentially be some day in the future.
Too many gombeens bought on the basis of future house prices with the rental yield being less than what they'd have got on deposit in the credit union :pac:

Also factor in the tax take is charged on income, so your looking at paying 50% or there about tax on the rent.
Another thing to consider is that if you buy in an area with low prices, especially outside dublin, the rents are lower. The boiler needing to be replaced or something along those lines will put a serious burden on your ROI.

handlemaster

quadrifoglio verde wrote: »

Not trying to be smart but if you need to ask people on the internet where the best places to buy investment property is then you should really reconsider investing in property.
The one piece Ill give you is buy for rental yields and not what the price will potentially be some day in the future.
Too many gombeens bought on the basis of future house prices with the rental yield being less than what they'd have got on deposit in the credit union :pac:

Also factor in the tax take is charged on income, so your looking at paying 50% or there about tax on the rent.
Another thing to consider is that if you buy in an area with low prices, especially outside dublin, the rents are lower. The boiler needing to be replaced or something along those lines will put a serious burden on your ROI.

I think that goes for everything on boards !!! I Dont need to ask I just want to. Lower rents and the cost of repairs is a big factor in negative sentiment towards the small towns.But saying that people love to live in different places and most in their own town.

ted1

There's a few bargains to be had in Wicklow town. You could pay 85k and obtain 650 rent

Villa05

ted1 wrote: »

There's a few bargains to be had in Wicklow town. You could pay 85k and obtain 650 rent

given the costs and tax plus the hassle and your time, that is a poor ROI

handlemaster

Villa05 wrote: »

given the costs and tax plus the hassle and your time, that is a poor ROI

I would have to agree . Better at half the price.

The_Conductor

There are a few areas of high demand- focused on different sectors.

Galway- is facing continued demand for good quality student accommodation- units which could be dual purposed for summer use might make an interesting investment.

Clare- large residual demand from workers in the area- sufficient housing was never built here. Also- UL students might bite accommodation in their particular area. Heading down towards Limerick- avoid the city- too much trouble spilling from certain areas- if you aren't there constantly, you might have a bit of a nightmare trying to manage it.

Cork- especially the city- but increasingly surrounding towns- with some places like Clon, where there are good local employers, experiencing considerable shortfall in available accommodation.

I'm not familiar with the SouthEast- but I'd hazard that if you looked at the areas of better employment- you'd find similar pent-up demand.

Midlands- avoid like the plague. Ditto the border regions- vast quantities of incomplete developments- many of which they've started to demolish. People don't want to live here- yet, its where a startling amount of development happened (when it should have been happening on the immediate outskirts of Dublin and Cork).

Dublin- depends on what you have in mind- but if you look at places like Lucan/Leixlip- there are plenty of good employers locally- and you should find professional tenants fairly handy. Unfortunately- you'll likely get scalped on prices here- once again supply is vastly below demand.

Maynooth- another university town?

You could go on and on ad-infinitum.

handlemaster

The student accomadation in Galway I always thought was just good for tax reasons. The thought of multiple tenants and short letting period would bring higher costs in repairs etc

The_Conductor

handlemaster wrote: »

The student accomadation in Galway I always thought was just good for tax reasons. The thought of multiple tenants and short letting period would bring higher costs in repairs etc

If you have a good management agency- it could be quite lucrative.
Have a gawk at Airbnb- there are more than a few people with plans along these lines- and the short term rental amounts are very high- for well spec'ed property (aka- you're looking at persuading well heeled tourists to self cater in a high spec unit- you're not looking for back packers..........)

handlemaster

The_Conductor wrote: »

If you have a good management agency- it could be quite lucrative.
Have a gawk at Airbnb- there are more than a few people with plans along these lines- and the short term rental amounts are very high- for well spec'ed property (aka- you're looking at persuading well heeled tourists to self cater in a high spec unit- you're not looking for back packers..........)

I think this is a very hands on approach and I wouldn't be interested in that. I've seen house for around 40k which I am sure could be bought for a lot less in the midlands which would rent for 350-400. I'm still not sure if this would be an investment worth doing. but the same.cash in a bank earns nothing.

The_Conductor

handlemaster wrote: »

I think this is a very hands on approach and I wouldn't be interested in that. I've seen house for around 40k which I am sure could be bought for a lot less in the midlands which would rent for 350-400. I'm still not sure if this would be an investment worth doing. but the same.cash in a bank earns nothing.

Vacant houses in the midlands (of which there are literally tens of thousands) also earn nothing. Athlone/Tullamore/Portlaoise- are the capital of ghost estates......... There is a reason those houses are cheap- no-one wants them.

handlemaster

The_Conductor wrote: »

Vacant houses in the midlands (of which there are literally tens of thousands) also earn nothing. Athlone/Tullamore/Portlaoise- are the capital of ghost estates......... There is a reason those houses are cheap- no-one wants them.

True

hfallada

Just buy an index from the stock market. There is less risk than property, there is no management fees, repairs, no hassle. But more importantly you can liquidate the index in the morning.

The returns on an S&P Index average about 10% over long periods of time. There is no work to them. Warren Buffet recommends index's to people who want to invest and have no idea what they are doing but want a decent return.

Plus its more tax efficent if you smart

ballyharpat

If you cant buy close to you, it doesnt matter the ROI, an agent can only do so much, it is much much better to be in close proximity to the property yourself imo
Killarney has 2 bed apartments for 75k ish with a rent of 620/650 pm. then management fees, tax etc. For me they work out well, a 3 bed house can be had for circa 100k and will bring in 650/700 with no management fees, but insurance etc-plus more maintenance, but I think they have a better chance of rising in price.