Property Investment

Irishder

Hi I would like some opinions. I am in the position to buy an investment property in Waterford for approx 140K. There will be no mortgage involved. The thinking is this will be a long term investment 10 or more years. Am I mad?

I have no experience being a landlord and appreciate that I will be taking on a lot of work for little return. I cant get a decent return in a bank and i am thinking that property prices will increase over the 10 years.

I will be buying in Waterford where the rental market seems strong and house prices seem to be levelling out.

I will be doing everything above board and paying all my tax's. Reading some threads here it looks like i could make 3000 Euro profit per year. Do people think the work involved and risk is worth it.

Diane Selwyn

Irishder wrote: »

I will be taking on a lot of work for little return.

Unless what you are really looking for is a hobby my highly unqualified opinion would be that if you have such faith in the property market you might be able to get a better than 2.5% return on an REIT for no work at all. I'd be hesitant to put all of it into property though (unless you already have investments in other asset classes). You are right to consider all options though and be as sure as you can be of how much risk you are taking on.

Cuddlesworth

I've got no idea what the Market in Waterford is like or where house prices are going. The only thing I will say is after working at property maintenance for two years.

Do not enter the property market as a landlord if you cannot handle the loss of 10-20k in vandalism and a full years rent gone. The risk is low but the reality is it exists.

hfallada

Put your money in an index like S&P 500. Its risen about 10% on average over the last 50 years. Its well diversified so minimal risk compared to over investment opinion. There is no real logic in your investment. I cant imagine property prices rising rapidly anywhere other than Dublin(I know im from Dublin and therefore dont have the best knowledge). But Dublin isnt reliant on one company or industry. Its the economic powerhouse of Dublin and is anywhere is going to have a massive increase in prices its Dublin as supply is limited( people wont travel any further than the existing commuter towns)

desertcircus

Have you looked at investment products? Depending on your age, you may be able to funnel the money into a pension product, reduce your tax bill and get a better rate of return. If you can structure it so as to get relief on the full amount, that gives you an extra forty to sixty thousand to invest.

I wouldn't consider ten years to long term in this context.