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Am I mad to buy a buy to let

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    #32
    joeysoap
    Registered Users Posts: 6,243 ✭✭✭joeysoap


    At €80k should attract lots of local interest. Why isn’t it snapped up? If it looks too good to be true............


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    #33
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    joeysoap wrote: »
    Why isn’t it snapped up?

    If everybody said that, nobody would ever buy anything.


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    #34
    joeysoap
    Registered Users Posts: 6,243 ✭✭✭joeysoap


    Claw Hammer wrote: »
    If everybody said that, nobody would ever buy anything.

    I mean why isn’t it bought by a local? Is there a reason local buyers are not interested?


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    #35
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    joeysoap wrote: »
    I mean why isn’t it bought by a local? Is there a reason local buyers are not interested?

    As it is currently let it is obviously a receiver sale. As such it can't be mortgaged.


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    #36
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    The OP said 'its ready to rent' not that it already has tenants (correct me if I've misunderstood).
    As such- if its in a semi-reasonable estate- I'd flog it ASAP- and lock in the capital in whatsoever a manner as was safest- obviously paying off any pre-existing debt first. Life is too short for the crap landlords are supposed to accept as normal operating parameters.


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    #37
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    The_Conductor wrote: »
    The OP said 'its ready to rent' not that it already has tenants (correct me if I've misunderstood).

    In a later post the o/p said the current rent is 800pm. There are tenants in it and it is on the market. it is fair to assume that vacant possession will not be given.


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    #38
    adam88
    Registered Users Posts: 1,609 ✭✭✭adam88


    Currently rented for the last 7/8 months for 800 pcm. Tenants are out this week. (Medical family, Dr rotating)

    Did a bit of researching. Local nosey neighbour decided to fill me in with loads of info. When things were bad, property was easily let for 550-600 a month. Never really any problem with tenants. House was never empty for long. Well kept by landlord.

    Standard 3 bed semi in this town would be approx 165k ish, these are just about commanding 950-1000 rent .

    This is a 3 bed/ one bath terraced house hence the low price but your return is way better than the above.

    I feel however you’d have to be very selective with your tenants.


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    #39
    Claw Hammer
    Registered Users Posts: 6,236 ✭✭✭Claw Hammer


    adam88 wrote: »
    Currently rented for the last 7/8 months for 800 pcm. Tenants are out this week. (Medical family, Dr rotating)

    Did a bit of researching. Local nosey neighbour decided to fill me in with loads of info. When things were bad, property was easily let for 550-600 a month. Never really any problem with tenants. House was never empty for long. Well kept by landlord.

    Standard 3 bed semi in this town would be approx 165k ish, these are just about commanding 950-1000 rent .

    This is a 3 bed/ one bath terraced house hence the low price but your return is way better than the above.

    I feel however you’d have to be very selective with your tenants.

    When you are in a downmarket location with low end accommodation the calibre of tenant interested is invariable lower. Remember that repair, maintenance costs and insurance etc are the same as the more upmarket properties so you return may not be much greater.


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    #40
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Claw Hammer wrote: »
    When you are in a downmarket location with low end accommodation the calibre of tenant interested is invariable lower. Remember that repair, maintenance costs and insurance etc are the same as the more upmarket properties so you return may not be much greater.

    If its currently rented to a Dr. it’s obviously possible to attract a good caliber of tenant.

    In fact if getting renting to rotating doctors is a area that could be tapped into it would be a great way to rent it. No worries about overholding etc, no one getting the idea the it’s their house as happens when people rent the one place for two long etc.


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    #41
    Soundguy.
    Registered Users Posts: 4 ✭Soundguy.


    Registered User
    Hello there,

    I'm considering buying a house for cash in South Dublin to let, I'd be a first-time buyer, I have no experience in investing so the only option I feel that is open to me is to buy a house to secour my savings.

    I'm looking on advice to buy to let, I'm concerned with finding the right tenants the management and Maintenance of a house and the taxation on a house and the insurance ect.

    I'm also moving abroad so if I bought a house to let this will be my only form of income...has anybody had a similar experience or do people feel this is a bad idea to buy to let and then move abroad?

    Any advice or opinions would be greatly appreciated

    Thanks in advance.


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    #42
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    You're mad to do it, you'd need to be certifiable to do it remotely. The market is at it's peak especially in South Dublin in regard to property prices, now is not a great time to buy. If the figures work out with a 2 year void (no rent) and rent at half of the current market rates then I'd say go for it, otherwise I'd hold on to my money and look at a local/safer investment.


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    #43
    Wheres Me Jumper?
    Closed Accounts Posts: 1,288 ✭✭✭Wheres Me Jumper?


    sure property is unlikely to continue increasing at recent rates, but that said property prices are NOT coming down anything soon.

    the demand is too strong. and the supply is not even close to catching up.
    many of those that say otherwise are most likely tenants who cannot afford to buy, and should not be considered serious investors.
    rents too are very strong, and will not come down anytime soon, due to supply & demand.
    again tenants dont like to hear this, but it's the truth.

    as for voids do not be frightened by scare stories. i have been letting property since 1998, and the longest any of my properties has been vacant is 1 week. if you manage your tenants correctly it will not arise.


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    #44
    Edgware
    Registered Users Posts: 5,874 ✭✭✭Edgware


    Soundguy. wrote: »
    Registered User
    Hello there,

    I'm considering buying a house for cash in South Dublin to let, I'd be a first-time buyer, I have no experience in investing so the only option I feel that is open to me is to buy a house to secour my savings.

    I'm looking on advice to buy to let, I'm concerned with finding the right tenants the management and Maintenance of a house and the taxation on a house and the insurance ect.

    I'm also moving abroad so if I bought a house to let this will be my only form of income...has anybody had a similar experience or do people feel this is a bad idea to buy to let and then move abroad?

    Any advice or opinions would be greatly appreciated

    Thanks in advance.

    If I was doing it I would go the apartment line rather than the house. You will be in an apartment complex which, despite stories of bad management, should be managed by a reputable agent. You will have no concerns about gutters, cutting grass, payment of refuse charges etc.
    If you could get a tenant in from Microsoft, Google etc you will have a well paid tenant, more than likely a continental, who have a good tradition of renting than you should be allright.


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    #45
    Magnatu
    Banned (with Prison Access) Posts: 260 ✭✭Magnatu


    HAP - landlords assistance payment.

    The amount of money taxpayers are giving private landlords under the scheme has soared from just €390,000 in 2014 to €276m last year.


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    #46
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Magnatu wrote: »
    HAP - landlords assistance payment.

    The amount of money taxpayers are giving private landlords under the scheme has soared from just €390,000 in 2014 to €276m last year.


    Oh the irony. I'd say the vast majority of LL's don't want anything to do with HAP. Furthermore I expect I'm not the only one (LL) that think's it's ridiculous that the private sector is being used to provide social housing.


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    #47
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Soundguy. wrote: »
    Registered User
    Hello there,

    I'm considering buying a house for cash in South Dublin to let, I'd be a first-time buyer, I have no experience in investing so the only option I feel that is open to me is to buy a house to secour my savings.

    I'm looking on advice to buy to let, I'm concerned with finding the right tenants the management and Maintenance of a house and the taxation on a house and the insurance ect.

    I'm also moving abroad so if I bought a house to let this will be my only form of income...has anybody had a similar experience or do people feel this is a bad idea to buy to let and then move abroad?

    Any advice or opinions would be greatly appreciated

    Thanks in advance.

    So you have managed to save the price of a house in South Dublin by putting money under the mattress?
    You don't need advice, you should be giving it.


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    #48
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Soundguy. wrote: »
    Registered User
    Hello there,

    I'm considering buying a house for cash in South Dublin to let, I'd be a first-time buyer, I have no experience in investing so the only option I feel that is open to me is to buy a house to secour my savings.


    Why not speak to an Financial Advisor or Wealth Manager?


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    #49
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    You can claim for maintenance expenses as a tax credit ,all expenses related to repairs.
    Say you buy a fridge ,for 800, you claim 100 euro per year for the next 8 years as a capital allowance.Eg you are only taxed on the profit you make
    after expense,s .
    You can claim for a agents fees , and accountants fees as an expense.
    A agent finds a tenant , and can deal with a tenant for you .
    Accounts charge 300 euro approx for doing 1 years tax return for a landlord.
    Capitals allowances can be claimed as expenses ,against rental income, eg furniiture, tv,s ,fridges, cooker ,beds etc
    look on www.revenue.ie , landlords tax etc


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    #50
    1874
    Registered Users Posts: 2,400 ✭✭✭1874


    storker wrote: »
    Take the same money and invest it in a property-based managed fund. Let some one else deal with the headaches.
    Any examples, how are these advertised? and regulated? central bank/financial regulator, ie how do you know its a legitimate organisation and whats the typical means of investment/return? is it dividends? interest? whats the benefits? over savings? and taxes (like DIRT)?

    adam88 wrote: »
    Am I right in saying that the yearly return from say for example Hibernia reit is just over 1.5 percent??? What your hoping for with the reit is capital appreciation ??


    Any others? 1.5% sounds fairly poor, some banks are offering that on some savings accounts, like mortgage savers and term deposits.

    Samuel T. Cogley wrote: »
    Why not speak to an Financial Advisor or Wealth Manager?


    Any recommendations? and again, who regulates these guys?
    I got out of landlording and have some money after tax and CG, I thought I was going to move house, but it seems its not happening right now, a wait might be better anyway, aside from statements of being at a peak of certain prices in some areas (Im not sure Im convinced that will affect things other then possibly, limit significant increase, but I dont forsee significant drops, but who knows with Brexit). Not that significant drops in price would necessarily benefit me, as it might mean I wont get a mortgage or worse (fingers crossed).
    That said, I dont like leaving my money tied up in plain savings accounts.


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