Buying a Property to Rent Out Before Moving Abroad

good vibes

Hello there.

I’m looking for a advice on buying a house to let, if any Landlords and property owners have any advice I’d appreciate it.

I’m due my inheritance & I would like to buy a house in Dublin for a budget of €235,000, I’m aware of the market at the current moment.I would like to buy for cash now to let as I plan on living abroad. I have secured an agent ;( a friend ) to Look after a property when I do buy to let .
I’m eager to buy now as I rent at present & I don’t want to eat into my budget.

I’ve a couple of questions..

1 .would it be better to wait ? Will house prices come down in the near future ?
( it doesn’t look like it ) as I said Im paying rent at the moment so I’m eager to buy asap

2,with taxes costs ect is it worth buying now to let out a house ? ..rents are high so i could make a profit. But I also hear landlords are leaving the market ? I’m wondering Why ?

3.I see Rents in county’s close to Dublin are the same as Dublin would I be better renting outside Dublin ? ...I say this because there is so little available in my budget in Dublin.

4 .Does anybody live aboard & let their property? Wondering how that works with taxes costs Il will be calling revenue for the relevant information .

Any help would be appreciated..

Thanks in advance...

Rows Grower

I can't see the price of houses dropping anytime soon, they will keep increasing at about at least 3-4% I reckon.

Do your research and you will find a house within your budget that will return decent rental income, don't limit yourself to Dublin or the immediate area either.

Buy right and you can't really go wrong, steady income and an asset that will more than likely keep increasing in value.

Caranica

Wouldn't recommend it to my worst enemy, especially in an area where you can buy at that price range.

Look at REITs and investing the money across a portfolio. I'm laughing at the post above that says you'll have a steady income. Not the experience of most landlords!!

Damages, unpaid rent, tenants next to impossible to evict... Getting out was the best thing we did.

good vibes

Thanks for the reply..I’m also hearing about the nightmares of bad tenants & damages ect...Ive been receiving lots of different advice..ie : if I let short term I can remove bad tenants easley enough as I don’t have to give a lease.

..it’s hard to know ..I want to to do the Right thing by investing my inheritance in a property to let but at the same time who would need all that trouble & stress & expense ?

it’s a very tough decision..I’m beginning to think maybe owner occupier might be the best bet .

as I’ve said I’ve gotten advice to ..buy to let ...don’t buy ..wait & buy in the future..
become an owner occupier ....it’s a very tough decision..

I’m beginning to think that buying & owner occupier might be the best bet...

Dav010

With your letting model, you would be limiting yourself to letting your property for max 6 months, giving your tenants notice to terminate and leave before Part 4 rights kick in. And, hoping that they don’t overhold. Risky.

There is a reason why experienced LLs were leaving in large numbers even though rents were at an all time high, that should give you cause for thought.

good vibes

H

Dav010 wrote: »

With your letting model, you would be limiting yourself to letting your property for max 6 months, giving your tenants notice to terminate and leave before Part 4 rights kick in. And, hoping that they don’t overhold. Risky.

There is a reason why experienced LLs were leaving in large numbers even though rents were at an all time high, that should give you cause for thought.

I hear you...I’m aware of the part 4 Tenancy agreement..

The thing I didn’t understand was why are Landlords and property owners getting out of the market when rents are at an all time high ?

..is it just down to the fact that their getting screwed over -losing money because of costs and damages due to bad tenants ? Court costs non payment of rent ? I’d it all down to these factors ?


As I said in my last post ...looking st the big picture now being owner occupier & receiving 14.000 a year tax free dosnt sound like a bad idea

Dav010

good vibes wrote: »

H

I hear you...I’m aware of the part 4 Tenancy agreement..

The thing I didn’t understand was why are Landlords and property owners getting out of the market when rents are at an all time high ?

..is it just down to the fact that their getting screwed over -losing money because of costs and damages due to bad tenants ? Court costs non payment of rent ? I’d it all down to these factors ?


As I said in my last post ...looking st the big picture now being owner occupier & receiving 14.000 a year tax free dosnt sound like a bad idea

There are many reasons why LLs may leave, personally, my reasons are (in no particular order)

• Property prices are pretty high and there is quite a good demand, so a good time to sell.

• Rent Pressure Zone legislation limits what I can charge for the service I am providing.

• Tenancy legislation favours tenants and rewards bad tenants by making it extremely difficult and expensive to remove them.

• I just don’t want the hassle anymore, I really think this sector is better left to large scale “professionals” who have the resources to manage their properties, raise rents like clockwork, and can absorb losses better than small, one property LLs.

I still have a couple of apartments, but they will be sold when the tenants move out.

good vibes

Dav010 wrote: »

There are many reasons why LLs may leave, personally, my reasons are (in no particular order)

• Property prices are pretty high and there is quite a good demand, so a good time to sell.

• Rent Pressure Zone legislation limits what I can charge for the service I am providing.

• Tenancy legislation favours tenants and rewards bad tenants by making it extremely difficult and expensive to remove them.

• I just don’t want the hassle anymore, I really think this sector is better left to large scale “professionals” who have the resources to manage their properties, raise rents like clockwork, and can absorb losses better than small, one property LLs.

I still have a couple of apartments, but they will be sold when the tenants move out.

Great advice.. Thank you

good vibes

Hi, Has anybody let out rooms in their house held onto a room and lived abroad ? Just wondering how that would work..

I know as an owner occupier your allowed rent 2 rooms tax free but you must live in ireland the greater part of the year..
I did here something about letting one room and in "your family home " & be able to live abroad ? Anyone aware of this ? Wondering if that's any different ?

Caranica

good vibes wrote: »

Hi, Has anybody let out rooms in their house held onto a room and lived abroad ? Just wondering how that would work..

I know as an owner occupier your allowed rent 2 rooms but you must live in ireland the greater part of the year..
I did here something about letting one room and in "your family home " & be initialed to live abroad ? Anyone aware of this ?

If you live overseas you pay tax on all income as with any other rental. If you live in the house, you can earn €14k per year tax free as long as all monies collected (rent and bills) does not exceed 13k.

Attempting to claim rent a room relief while living abroad if fraud and fairly easy to detect given you still have to declare the income to revenue, it's just not taxable.

good vibes

Caranica wrote: »

If you live overseas you pay tax on all income as with any other rental. If you live in the house, you can earn €14k per year tax free as long as all monies collected (rent and bills) does not exceed 13k.

Attempting to claim rent a room relief while living abroad if fraud and fairly easy to detect given you still have to declare the income to revenue, it's just not taxable.

Well im not "atemping *anything fraudulent..

I was just inquiring about letting one room..& what the situation was with the tax if i was living abroad.. And is there a different situation for letting one room.. I seen something about that online.. Im just digging for answers.. Il have to get legal advice on that

wench

good vibes wrote: »

I want to to do the Right thing by investing my inheritance in a property

What makes you think investing in a property is the "right thing"?
Have you looked at investing in a stock market fund?
Or a REIT if you want property exposure.


Much less risk and hassle to you, and you can always cash out later and buy a property for yourself when you're ready.

Rows Grower

Dav010 wrote: »

There are many reasons why LLs may leave, personally, my reasons are (in no particular order)

• Property prices are pretty high and there is quite a good demand, so a good time to sell.

• Rent Pressure Zone legislation limits what I can charge for the service I am providing.

• Tenancy legislation favours tenants and rewards bad tenants by making it extremely difficult and expensive to remove them.

• I just don’t want the hassle anymore, I really think this sector is better left to large scale “professionals” who have the resources to manage their properties, raise rents like clockwork, and can absorb losses better than small, one property LLs.

I still have a couple of apartments, but they will be sold when the tenants move out.

While I appreciate all your reasons for not wanting to continue I have stuck at it through thick and thin and am happy I did.

I've had more horror stories than most and I know quite a few horror stories.

Property prices are high at the moment but are also predicted to continue rising.

Rent Pressure Zone Limits are unfair to some landlords but even in a Rent Pressure Zone renting to a RAS or HAP tenant you can increase the rent annually by 4%.

The law favours the tenant but it pays to choose the right tenants even if the house is idle for a week or two it's worth it to wait for or seek out the right tenant.

You only need to put a reminder in your phone for 2 months before you are entitled to raise the rent, this gives you the chance to put your request in writing and have time for it to be answered.

You've got to be in it for the long haul to make it work and that means dealing with any problems as they arise and learning from them. If you can stick it for twenty years it's a no brainer and you'll hardly make a better investment.

good vibes

wench wrote: »

What makes you think investing in a property is the "right thing"?
Have you looked at investing in a stock market fund?
Or a REIT if you want property exposure.


Much less risk and hassle to you, and you can always cash out later and buy a property for yourself when you're ready.

Thanks.. Ive considerd that but i don't want to take a risk with investments..

good vibes

Rows Grower wrote: »

While I appreciate all your reasons for not wanting to continue I have stuck at it through thick and thin and am happy I did.

I've had more horror stories than most and I know quite a few horror stories.

Property prices are high at the moment but are also predicted to continue rising.

Rent Pressure Zone Limits are unfair to some landlords but even in a Rent Pressure Zone renting to a RAS or HAP tenant you can increase the rent annually by 4%.

The law favours the tenant but it pays to choose the right tenants even if the house is idle for a week or two it's worth it to wait for or seek out the right tenant.

You only need to put a reminder in your phone for 2 months before you are entitled to raise the rent, this gives you the chance to put your request in writing and have time for it to be answered.

You've got to be in it for the long haul to make it work and that means dealing with any problems as they arise and learning from them. If you can stick it for twenty years it's a no brainer and you'll hardly make a better investment.

Thank you good advice

Geuze

good vibes wrote: »

Thanks.. Ive considerd that but i don't want to take a risk with investments..

I lost 70k on selling a house.......

Housing isn't risk-free.

Albeit at the moment, with very strong rents, and no sign of any falls in house prices, I agree the financial risks are low.

good vibes

Rows Grower wrote: »

While I appreciate all your reasons for not wanting to continue I have stuck at it through thick and thin and am happy I did.

I've had more horror stories than most and I know quite a few horror stories.

Property prices are high at the moment but are also predicted to continue rising.

Rent Pressure Zone Limits are unfair to some landlords but even in a Rent Pressure Zone renting to a RAS or HAP tenant you can increase the rent annually by 4%.

The law favours the tenant but it pays to choose the right tenants even if the house is idle for a week or two it's worth it to wait for or seek out the right tenant.

You only need to put a reminder in your phone for 2 months before you are entitled to raise the rent, this gives you the chance to put your request in writing and have time for it to be answered.

You've got to be in it for the long haul to make it work and that means dealing with any problems as they arise and learning from them. If you can stick it for twenty years it's a no brainer and you'll hardly make a better investment.

Ah im not out yet ! .. I could continue.. Just researching at the moment thanks

wench

good vibes wrote: »

Thanks.. Ive considerd that but i don't want to take a risk with investments..

Investments spread the risk over several companies or properties, so one doing badly won't tank you.
You are proposing putting all your money on one house with one tenant.


You should evaluate the real risks of both, and weigh them up.
An appointment with a financial advisor would probably be worthwhile for this much money.

Caranica

good vibes wrote: »

Well im not "atemping *anything fraudulent..

I was just inquiring about letting one room..& what the situation was with the tax if i was living abroad.. And is there a different situation for letting one room.. I seen something about that online.. Im just digging for answers.. Il have to get legal advice on that

Any rental income in Ireland while you live abroad is taxable. Whether it's one room or more doesn't make a difference. You don't need legal advice you need advice from a taxation expert/accountant.

good vibes

Geuze wrote: »

I lost 70k on selling a house.......

Housing isn't risk-free.

Albeit at the moment, with very strong rents, and no sign of any falls in house prices, I agree the financial risks are low.

’Ouch...sorry to hear that ...

good vibes

wench wrote: »

Investments spread the risk over several companies or properties, so one doing badly won't tank you.
You are proposing putting all your money on one house with one tenant.


You should evaluate the real risks of both, and weigh them up.
An appointment with a financial advisor would probably be worthwhile for this much money.

As I said i will have to take legal advice...I’m researching...so I’m not proposing anything at the mo...I don’t have extra money to risk with investment .

.if I rent out a whole house to a family I pay 17% tax a year a good Portion of that can be written off against the tax ...

the only thing stopping me from doing that is the fear of getting bad tenants...I’ve heard all the horrific stories of good tenants turning bad...you can vet people forever but it’s still a major risk....

it could easily end up costing me a lot of money and stress...that’s the problem..

.unless I try to rent to friend’s only ....anyhoo ..it’s all ahead of me...
Thanks for the help.

good vibes

Caravnica wrote: »

Any rental income in Ireland while you live abroad is taxable. Whether it's one room or more doesn't make a difference. You don't need legal advice you need advice from a taxation expert/accountant.

Correct.. I’ll be phoning the Revenue dept....

Thanks

Pinoy adventure

There is a reason why LL are selling up all over the place.its simple so much hassle.
Could you imagine you get a bad person in ? No rent for 6-12months or more and some landlords pay cash too get them out quickly.

Rows Grower

Pinoy adventure wrote: »

There is a reason why LL are selling up all over the place.its simple so much hassle.
Could you imagine you get a bad person in ? No rent for 6-12months or more and some landlords pay cash too get them out quickly.

Don't be such a drama queen, if landlords were selling up all over the place house prices would be dropping like a lead balloon. It's simply not true.

Dav010

Rows Grower wrote: »

Don't be such a drama queen, if landlords were selling up all over the place house prices would be dropping like a lead balloon. It's simply not true.

Interesting articles in the papers two weeks ago, SF auctioneers confirmed 30% of all properties for sale are Landlords exiting the market. It is fair to assume that they are not the only auctioneers experiencing this.

But carry on anyways Rows Grower.

Pinoy adventure

Dav010 wrote: »

Interesting articles in the papers two weeks ago, SF auctioneers confirmed 30% of all properties for sale are Landlords exiting the market. It is fair to assume that they are not the only auctioneers experiencing this.

But carry on anyways Rows Grower.

Correct.most if not all are experiencing this.so no need too throw your toys out of the pram rows grower

good vibes

Rows Grower wrote: »

While I appreciate all your reasons for not wanting to continue I have stuck at it through thick and thin and am happy I did.

I've had more horror stories than most and I know quite a few horror stories.

Property prices are high at the moment but are also predicted to continue rising.

Rent Pressure Zone Limits are unfair to some landlords but even in a Rent Pressure Zone renting to a RAS or HAP tenant you can increase the rent annually by 4%.

The law favours the tenant but it pays to choose the right tenants even if the house is idle for a week or two it's worth it to wait for or seek out the right tenant.

You only need to put a reminder in your phone for 2 months before you are entitled to raise the rent, this gives you the chance to put your request in writing and have time for it to be answered.

You've got to be in it for the long haul to make it work and that means dealing with any problems as they arise and learning from them. If you can stick it for twenty years it's a no brainer and you'll hardly make a better investment.

Thank you...good advice.

DubCount

Rows Grower wrote: »

Don't be such a drama queen, if landlords were selling up all over the place house prices would be dropping like a lead balloon. It's simply not true.

I reckon this will be a first for me, but I'm going to quote the Sinn Fein website !!

"According to data from the Residential Tenancies Board we have lost almost 20,000 tenancies from the rental market since 2017"

https://www.sinnfein.ie/contents/59403

It simply is true

Rows Grower

Dav010 wrote: »

Interesting articles in the papers two weeks ago, SF auctioneers confirmed 30% of all properties for sale are Landlords exiting the market. It is fair to assume that they are not the only auctioneers experiencing this.

But carry on anyways Rows Grower.

Any statistics on who's actually buying these properties?

I wouldn't be at all surprised if a lot more than 30% were being bought by investors with a view to let.

As you were.

Pinoy adventure

Rows Grower wrote: »

Any statistics on who's actually buying these properties?

I wouldn't be at all surprised if a lot more than 30% were being bought by investors with a view to let.

As you were.

Did you pull the 30% from the sky ???

Rows Grower

DubCount wrote: »

I reckon this will be a first for me, but I'm going to quote the Sinn Fein website !!

"According to data from the Residential Tenancies Board we have lost almost 20,000 tenancies from the rental market since 2017"

https://www.sinnfein.ie/contents/59403

It simply is true

I really am struggling to see what point you are trying to make, don't go into being a landlord because there are 20,000 more houses needed for rent?