apartment sold last month for 125k now up for 1400 a month

utmbuilder

This apartment went for 125,000 last month. I contacted them afterwards to buy it and it was sold. mortgage was costing in the region of 400 a month.

It's online to rent now for €1400 ,

how long will these rental prices last? It seems one hell of an investment at the moment.


http://www.daft.ie/dublin/apartments-for-rent/tyrrelstown/cruise-park-drive-cruise-park-tyrrelstown-dublin-1670368/

Paulw

utmbuilder wrote: »

how long will these rental prices last?

Rental prices will last until there is more supply than demand.

Swings and roundabouts. Prices go up and down. Right now, rental market is very strong.

quadrifoglio verde

utmbuilder wrote: »

This apartment went for 125,000 last month. I contacted them afterwards to buy it and it was sold. mortgage was costing in the region of 400 a month.

It's online to rent now for €1400 ,

how long will these rental prices last? It seems one hell of an investment at the moment.


http://www.daft.ie/dublin/apartments-for-rent/tyrrelstown/cruise-park-drive-cruise-park-tyrrelstown-dublin-1670368/

You need to remember that the government take a big chunk of that rent

johnnyskeleton

Im sure there are other apartments for sale at that price. Anyone who can afford to and is prepared to take the risk can buy instead of renting. The market seems to say that few want to buy though.

P. Breathnach

quadrifoglio verde wrote: »

You need to remember that the government take a big chunk of that rent

As they do with any other income.

CaoimheSquee

johnnyskeleton wrote: »

Im sure there are other apartments for sale at that price. Anyone who can afford to and is prepared to take the risk can buy instead of renting. The market seems to say that few want to buy though.

I would love to buy, as would many my age (early to mid 30's) but while getting a mortgage is hopeful many have to accept it may never be likely.
1400 is upper limit between me and my partner monthly renting but just because we can afford that certainly doesn't mean we could buy! It really is not that simple.

StupidLikeAFox

utmbuilder wrote: »

This apartment went for 125,000 last month. I contacted them afterwards to buy it and it was sold. mortgage was costing in the region of 400 a month.

It's online to rent now for €1400 ,

how long will these rental prices last? It seems one hell of an investment at the moment.


http://www.daft.ie/dublin/apartments-for-rent/tyrrelstown/cruise-park-drive-cruise-park-tyrrelstown-dublin-1670368/

Im fairly sure that you have to pay the €400 per month but you are taxed on the full €1400. They are still making money but not as lucrative as it sounds, and one or two missed payments will have an impact

Not much in D15 for that price range so it seems it was indeed a potentially shrewd buy.........

using crude enough figures...........

€25K deposit + €10k other initial costs
€100k mortgage over 25 years is €585/month at 5.2% APR (investor rate)

€190/month will be deductable expense for mortgage interest, say €100/month management fee & pretend a letting agent is charging 6% so €105 ish........ that's ....

Annual income (we'll use an 11 month let) €15400, €4740 expenses so that's €10.5k ish to be taxed income with mortgage costing €7k year so the landlord if after borrowing €100k will have €10k after tax income from it to pay €7k/annum mortgage, €1.2K management charge & €1200 letting agent fee. Basically after the €35k upfront it might all going well pay for itself going forward.

Not quite the pocket liner folks think it is though and €125k properties with €1400/month incomes aren't easy to find.

Again, all above presumes borrowing €100K over 25 years and I've lazily done linear interest over the period as I couldn't be arsed doing it anyother way !!

Lux23

StupidLikeAFox wrote: »

Im fairly sure that you have to pay the €400 per month but you are taxed on the full €1400. They are still making money but not as lucrative as it sounds, and one or two missed payments will have an impact

Really depends if they have a mortgage or not. If they don't the earnings are substantial.

StupidLikeAFox

StupidLikeAFox wrote: »

Im fairly sure that you have to pay the €400 per month but you are taxed on the full €1400. They are still making money but not as lucrative as it sounds, and one or two missed payments will have an impact

You'll can deduct 75% of the interest as an expense along with other expenses.

o1s1n

Yeah someone definitely got a bargain on that purchase, I wouldn't see that kind of pricing as the status quo.

Lux23

Lux23 wrote: »

Really depends if they have a mortgage or not. If they don't the earnings are substantial.

No mortgage and you'll pocket half ish of the €1400/month for a €135k (allow €10k for other costs) upfront investment.

A gross annual 12.4% yield isn't to be sneezed at.

pocketse

We're in a rental bubble at the moment. Its unlikely he will achieve that rent over the full term of the mortgage. As with everything there will be up times and down times. 6 or 7 years ago we were told an apartment was the most stupid thing you could possibly buy. Who'd want to live in it long term. You can't judge a 30 year investment on the conditions we have right now. They seems to have got it at a decent price and will do ok out of it, and I don't begrudge him for that.

zef

I find that apartment rental quite over-priced for the area - I live about a mile away.
You can get a 3 bed, 1-2 bath semi d to rent in a private estate for that money in D.15. And in nicer areas than Tyrellstown also imo. I find the area very isolated and cut off.

e.g: http://www.daft.ie/dublin/houses-for-rent/clonsilla/portersfield-clonsilla-dublin-1669820/
3 beds, 2 baths, near the Centre & better bus / train links
or http://www.daft.ie/dublin/apartments-for-rent/clonsilla/phibblestown-house-phibblestown-avenue-clonsilla-dublin-1669674/ 100 pm less,better transport/ area,.
He might well be revising his rent downward soon enough.

Augeo

Augeo wrote: »

........... it might all going well pay for itself going forward..............

pocketse wrote: »

We're in a rental bubble at the moment. Its unlikely he will achieve that rent over the full term of the mortgage. As with everything there will be up times and down times. 6 or 7 years ago we were told an apartment was the most stupid thing you could possibly buy. Who'd want to live in it long term. You can't judge a 30 year investment on the conditions we have right now. They seems to have got it at a decent price and will do ok out of it, and I don't begrudge him for that.

Indeed, that's why I included the bit in bold.

Hollister11

Fair play to the owner. A nice little ROI that. 13.4% pre tax yield.

_Kaiser_

D1 energy rating, is it actually over the entrance (ie: noisy and potentially security issues) and in an isolated part of D15 at the back of a housing estate. Can see why it sold for €125k, but I wouldn't be renting it for €1400 s month anyway!
Also "please contact us to register your interest" suggests they think they'll have a bidding war for it. That's perhaps even more depressing.

The Good Times are back anyway!

Theboinkmaster

What a sh!tbox.

_Kaiser_

_Kaiser_ wrote: »

D1 energy rating, is it actually over the entrance ............

I would think the bedrooms and maybe the bathroom are 1st floor, master bedroom fully over the car entrance and the bathroom & half the 2nd bedroom over the entrance. Living room & kitchen to the right of the photo with the bins outside the window :pac:

Dual aspect anyway :pac:



"The property is a townhouse with own door access and is comprised of 2 double bedrooms, living room, kitchen and main bathroom"

Sad Professor

Imagine what it what it was worth in the boom...

L1011

_Kaiser_ wrote: »

D1 energy rating

I'd almost consider that too high - the rooms over the entrance have nothing insulating them from below at all. Ever seen a bridge deck ice up when the road doesn't?

Sad Professor

Sad Professor wrote: »

Imagine what it what it was worth in the boom...

:pac:

billions

utmbuilder

cars drive under it, vans too, would be an insane buy to live in,

lots of houses up in tyrellstown have the garages like that ,

i dont like the idea of a car being parked inside a house,

not sure what the designers where thinking of

PammyT

Is it likely that rents will (ever) go down in the city centre area? I live in Los Angeles, where rents continue to climb regardless of what the housing market does.

PammyT

PammyT wrote: »

Is it likely that rents will (ever) go down in the city centre area? I live in Los Angeles, where rents continue to climb regardless of what the housing market does.

In 2010/2011/2012 rents were much lower in Ireland than they were in 2006/2007 for the mostpart, Dublin included I would think.

The rent bubble (if there is one) isn't a huge problem as when it breaks the repercussions won't be huge compared to the property bust we saw under a decade ago.

Despite our high rent at the moment BTLs aren't in vogue by private investors and pro investors have bought at low prices.

The problem is for individuals to afford the rent and there is an element of reduced spending power and ability to save for deposits which in itself keeps demand restrained for first time buyer properties.

Moonbeam

I am pretty sure that they will not get 1400 a month for it . The are lovely houses near there renting for less .

the groutch

I wouldn't even pay 400 a month for it.

PammyT

And BTL: Buy to Let? Surprising that more individuals don't jump on this as an investment.

the_syco

If it comes with the garage, I can see someone with a motorcycle being attracted to it.

newacc2015

Augeo wrote: »

In 2010/2011/2012 rents were much lower in Ireland than they were in 2006/2007 for the mostpart, Dublin included I would think.

The rent bubble (if there is one) isn't a huge problem as when it breaks the repercussions won't be huge compared to the property bust we saw under a decade ago.

Despite our high rent at the moment BTLs aren't in vogue by private investors and pro investors have bought at low prices.

The problem is for individuals to afford the rent and there is an element of reduced spending power and ability to save for deposits which in itself keeps demand restrained for first time buyer properties.

But they were artificially low. They dropped too much. It is was absurd to think getting a 2 bed apartment in Dublin City for €1100 was going to continue forever. Look at hotel prices too. You could get room in a luxury 4 star hotel on a golf course for like €90 a night at a weekend. That wasnt sustainable in the low run, since we had one of the harshest recession experienced by a developed nation in decades.

A few REITs have brought Irish property. A lot of which are actually Irish owned eg Green and Hibernia. Most property being brought by investors is still small Irish investors wanting to buy a BTL property

How can you consider rental properties to be in a bubble when huge amounts of it is still being sold each month? Surely if the price is inflated as much as you are implying, why would should sell it? As with all the taxes etc BTL are not that profitable as you think

We had higher rents in 2007 and people will still about to afford to buy housing, so I dont see why you think rental prices will limit FTB as much as you think. A far bigger impact is the mortgage lending rules.