Buying apartment to rent/sell in a couple of years?

Hollister11

MarkAnthony wrote: »

€250K gets you striaght into 3 bed semi/end of terrace territory if you're canny about the area.

I spent around that on a 4 bed Semi within 2 minutes walk of the DART station. I'd suggest it would be very illadvised to sped that amount of money on an apartment. The yield would be terrible.

Berry's close has some interesting 'wildlife'. Well more the area, it's grand but you'd want to bnot be afraid of telling knackers to feck off.

Where in Dublln did you get a house for 250k close to a dart station ?

That sounds like a pretty good deal to me.

SarahMollie

I'm going to guess a fixer upper around Kilbarrack or similar?

yqtwqxqm

donkeyoaty0099 wrote: »

The boom is well and truly back if we are having serious discussions about flipping properties for profit in the short term. Did we learn nothing at all from the last time?

I know what I learned.

- Booms and busts happen every decade or less.
- Waiting and trying to time markets one way or the other isnt going to work.
- Its all gambling at the end of the day.
- Everybody in Ireland seems to be either a property expert or an economist.
- I only personally know of two or three people whos expert knowledge of property has led to them retiring and living off their earnings, while i know of hundreds who spout how expert they are and have made no money from this "expert" knowledge.

MarkAnthony

Hollister11 wrote: »

Where in Dublln did you get a house for 250k close to a dart station ?

That sounds like a pretty good deal to me.

Kilbarrack, and before anyone asks my neighbours and others in the area are lovely! Admitadly I was slightly more than 250K but slightly smaller houses up the road are going at 220K - 3 bed C.80sqm. Not a bad little starter home especially if the neighbours were anywhere near as welcoming as they were to me.

Certainly if you're willing to entertain that part of Incicore you'd have no problem dealing with the minor issues in Kilbarrack.

SarahMollie wrote: »

I'm going to guess a fixer upper around Kilbarrack or similar?

Mint walk in condidtion on a house just under 15 years old, pretty much left us a full kit for the house minus beds. There was a five bed detached going down the road for 364K. If I'd just had a little more dosh

My brother in law just bought a bigger 3 bed semi in Clonsilla, which was a fixerupper for just over 200K. As I'm fond of saying there is value to be had in Dublin still if you're willing to go looking for it.

Edit: Here's one for example. http://www.myhome.ie/residential/brochure/23-mount-olive-grove-kilbarrack-dublin-5/3415356

sunsetter

I don't see anything wrong with spending e250k+ on a 2br apt. I done just that and it's all going well so far. Lived in it for most of last year and then took a job in Australia so I'm renting it out, and if/when I move home in 2-5 years I have a place to move back into. All taken care of through an agency. Rental yield of 7.8% which isn't bad either.

armabelle

Dominique Miniature Firefighter wrote: »

I have a similar plan to the op (no intention of going travelling though). Planning to buy somewhere asap as I refuse to pay the extortionate rents so will tolerate sharing until I buy. I would live in it for a few years and then most likely rent it out when I want to upgrade to a bigger place/move back home where I want to settle down for good.

Excuse my ignorance but won't paying extortionate rents in Ireland include sharing? I mean, the sum of the rents in the house whether you are sharing or not still need to equal the extortionate rent so you will still be paying a fortune... less, but an extortionate amount all the same.

armabelle

Whipping Boy wrote: »

Thanks for all the responses thus far, some really interesting insights.

To be clear: flipping the property over for a profit was not my main priority. I'm basically looking to move out but not willing to pay the extortionate rents at present and, as such, I was looking to instead purchase an apartment as a launch pad to a house in a couple of years. This may be delayed by a year if I decide to travel but the basic principle is the same.

The costs up front of doing so are probably more extensive than I have envisaged however, along with the obvious risks in terms of market value...

I guess one way way you could put it is that the rents are high..... but another could be that what you earn is too low? What people earn always is the last to adjust to inflation.

armabelle

armabelle wrote: »

Excuse my ignorance but won't paying extortionate rents in Ireland include sharing? I mean, the sum of the rents in the house whether you are sharing or not still need to equal the extortionate rent so you will still be paying a fortune... less, but an extortionate amount all the same.

Well even if the overall rent is high the shared rent (while still a part of an overall height rent) is still much less to my pocket and allows me to save much more per month.

That said the rent I pay is very reasonable in comparison to a lot of places, even in the same estate. I would say my rent very fair, rent was put up for the first time this month since I moved in (coming up on 3 years ago) and only by 25 euro (for my portion). My rent now is only the same now as it was in my previous house in the same estate living with 4 people instead of 3. If I were my LL id have increased the rent more as it would have been within market rates to do so.

The_Conductor

OP- you need to look at the entire costs of ownership- and not just the headline savings you'd make from not paying rent.......

Years 1 and 2- as you're living in the property- the mortgage interest is not tax deductible at all- and add to that you've management charges (which for 2 developments in Inchicore and Smithfield that I have dealings with are between 2,500 and 3,500 per annum)- alongside property tax etc to take into account- wholly aside from kit out costs, transactional costs etc- associated with purchasing the property. You may be shocked at just how high these are.

After you let out the property- 75% of the mortgage interest- becomes an allowable cost- however, you still have all the other costs of ownership- and you may have agent costs (typically 10% of rental income) to factor into the equation too- as you'll not be around........

If you're not tax resident here- you may not qualify for a tax free allowance- which may mean you end up paying a disproportionate amount of tax to Revenue.

Even allowing for all of these things- apartment prices are falling in the Dublin area (albeit on erratic and very low volumes of transactions)- if you intended to flip the property in 5 years- it is not a foregone conclusion that you'll be in positive territory- despite saving on renting somewhere else........

As you're going to discover- the only winner in the game of renting either as a tenant or a landlord- or as a property owner- are the Revenue Commissioners........