WHERE TO BUY?

fifigogo

Hi I am looking for some advice please.
I want to buy a property outside of Dublin with the intention of letting. I will be living abroad for awhile (not sure how long exactly) so it will be a small income for me and also somewhere for me to live when I return. I can only afford either a one bed apartment or two bed depending on location. There are one bed apartments going in Mullingar Westmeath, one or two bed in Waterford (WC, Gracedieu, Kilmacthomas, summer hill), Kilkenny (outside KC - not a lot of choice in my price range) or Wexford (Enniscorthy,New Ross). I've also been looking at some areas in Tipperary. I would prefer somewhere that's close(ish) to Dublin with good transport route, access to jobs, etc and that will be easy enough to let(if that's possible). I do have a trustworthy family member who will manage the property for me while I'm away and I won't be borrowing so no mortgage repayments to worry about (only all the other stuff!!)

Any suggestions?

johnnyskeleton

fifigogo wrote: »

Any suggestions?

Go onto daft and see what such apartments seem to rent for. See what is being asked and see how long those ads are up for. Or ask a local estate agent about it.

Then calculate the total rent for one year. Deduct managment fees, 1 months rent per year (on the basis that the tenants may move out and youd have to get new ones), repairs, property tax and prtb fees etc. Then, divide this figure by the purchase price. This will give you a % return on investment. Then see if you can get a better return elsewhere on a different property or on a different kind of investment.

So say it costs 100k and rents for 800pm. Thats 9600 less say 1,500, 800, 400, 200, 125. Call it 6600. Thats 6.6% return. Not guaranteed if you get a problem tenant, cant lease it etc. There is also a capital appreciation apsect i.e. do you think this specific property will increase or decrease in value over that time.

Personally, I wouldnt buy to let and Id put the money in a bond or other secure investment for those years. But maybe im a more conservative investor than you.

As regards Mullingar and Wexford, I wouldnt know those areas sufficiently well to gauge the market. But as you want to live in this place in a few years time, chose a place that you are happy to live in or might get a job in etc.

Moonbeam

look at Balbriggan in Dublin too,excellent rental market but cheaper then most of Dublin.

fifigogo

Moonbeam wrote: »

look at Balbriggan in Dublin too,excellent rental market but cheaper then most of Dublin.

Thanks for the replies. Dublin is a bit out of my price range. I think I'll just have to have a look at a few places.