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Renting Apartment

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  • 23-09-2019 12:09am
    #1
    BelovedAunt
    Closed Accounts Posts: 803 ✭✭✭


    Hi guys, I'm currently living in the apartment I own with a 30 year mortgage. I have seen these apartments listed for over 3k a month to rent, so I'm thinking of renting it and buying a house, as the rent will pay the mortgage. My only downside is the deposit on a house but with a year of planning I could afford it. Is this a good idea or should I just stay here until the next housing collapse and look to buy a house then?


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    #2
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    have you taken tax into account?

    make sure you sell the apt b4 the next housing collapse!


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    #3
    Wesser
    Registered Users Posts: 1,813 ✭✭✭Wesser


    you need to provide more information. eg are you married do you have kids etc. as a lone standing question its very hard to answer.

    note you will pay circa 50 % of the income you make from the apartment on tax / expenses and in addition you need a 20 % deposit, not 10 % for the second property.


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    #4
    joeguevara
    Registered Users Posts: 8,064 ✭✭✭joeguevara


    Many factors are at play here.

    Firstly if similar apartments as yours are listed for 3k I presume you live in Dublin. Do you want to stay in Dublin? If so houses are probably going to be 400k plus.

    You would have to have a salary (yours or yours and partner) of probably 120 k or more. Also you will have to cover two mortgages and new house will probably be be close to 2k.


    You will have property tax on two properties and insurance and life policies. Also you have to pay the full tax in your rental income and not the profit so the 3k per month is probably reduced to 1600_1800. You have added responsibilities of being a landlord. You also can only use a portion of the rent in total income. Rent won't always be 3k a month and during last crash my rental income went from 1600 to 800 a month.

    It can be a good investment but only if thought through. your last sentence is confusing...the next property crash (there will be one as proved by history) but that means rent will probably drastically reduce.


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