Rental yield UK or Ireland

coolbeans

Just looking for some feedback here. I'm UK and Irl based.
Have approximately €250k cash and looking to invest in the UK (south, outside M25) or Dublin central. Looking for maximum rental yield with little or no vacancy rate. I reckon a Docklands two bed apartment will generate c. 19500€ p.a. - 10% for letting agent and management fees.
I reckon London commuter flat 40 mins from the City on train in Chelmsford, Essex apartment will get me less in terms of the asset however considering the strength of sterling over the last five years I reckon the rental yield would be better at approximately £12000 or €16k less 10% for fees. What's the better bet long term?

athtrasna

coolbeans wrote: »

Just looking for some feedback here.
Have approximately €250k cash and looking to invest in the UK (south, outside M25) or Dublin central. Looking for maximum rental yield with little or no vacancy rates. I reckon a Docklands two bed apartment will generate c. 19500€ p.a. - 10% for letting agent and managemnt

-20%+ for tax/usc etc ? Btw 10% for letting AND management in Dublin sounds exceptionally low.

Barely Hedged

athtrasna wrote: »

-20%+ for tax/usc etc ? Btw 10% for letting AND management in Dublin sounds exceptionally low.

PRSI and USC are not payable by foreign tax residents on rental income

Barely Hedged

coolbeans wrote: »

Just looking for some feedback here.
Have approximately €250k cash and looking to invest in the UK (south, outside M25) or Dublin central. Looking for maximum rental yield with little or no vacancy rates. I reckon a Docklands two bed apartment will generate c. 19500€ p.a. - 10% for letting agent and managemnt

No vacancy rates will come from location ie city centre, opposite a hospital, train station, university etc.

Maximum yield from the spec of the property

handlemaster

good question. I think the london market is in for a correction and therefore the UK market as a whole. I would go with Dublin but that would be just a guess without going into it in to much detail.

field_marshall

the yield on property in dublin is easily double that of london , property in england is far more expensive than in ireland even you exclude london

Michael D Not Higgins

250k will just about scrape you into the Docklands. You're looking at a 1-bed, and while you may achieve 1600+/month, the usual advice is to allow for 1 month's vacancy per year so it's more like 18k return or 7.2% gross ROI. You're probably looking at 4-5% after taxes and costs which is still a pretty attractive rate.

coolbeans

Btw 10% for letting AND management in Dublin sounds exceptionally low.[/quote]

Does it? That's what the agent mentioned. Was I being naive?

glued

I'd avoid both. Anything near London is far too expensive. The Irish property market is far from a safe bet in the medium term. Regulation in Ireland could be an issue post General Election too. If I had 250k to invest I would not be locking it into a property.