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Buying to let an apartment in Balsbriggan - Cardy rock view area

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  • 06-06-2021 8:06pm
    #1
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭


    Dear forum participants,

    I took into account many comments you have made about Citywest and Balymun.

    Now I am close to sale agreed on a 2 bedroom apartment in Balbriggan, very good condition, tenants in situ, rent 1400, price 200 000 EUR (quoted initially at 180 000), Cardy rock view area, close to the sea.

    The tenants want to stay for 2 more years.

    How does this sound to you as a long term investment? I am a cash buyer. Was priced out of Dublin in the last 3 months...

    I must say there is real frenzy on the market, people getting rid of cash in the anticipation of upcoming hyperinflation, it is a true liquidity tsunami...

    On the other hand:

    I have read the latest news on US and EU to agree on uniform increase of corporate taxes globally.

    Corroborate that with recent scandalous "news" of Microsoft Dublin branch paying ZERO tax of 400 billion profits in EU.

    Can EU force Ireland give up on the current tax rates?

    Could that drive US multinationals out of Ireland?

    That would lower prices and rents dramatically in Dublin.... a bad news for a small investor....

    Thank you!


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    #2
    DubCount
    Registered Users Posts: 1,089 ✭✭✭DubCount


    John1648 wrote: »
    ......tenants in situ.......

    This spells trouble. Why is the vendor selling (for a lower price than market rate) without evicting the tenants and gaining vacant possession?


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    #3
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭John1648


    DubCount wrote: »
    This spells trouble. Why is the vendor selling (for a lower price than market rate) without evicting the tenants and gaining vacant possession?

    My impression is that this price is not below market rate. The asked price was 180 k, went up to 200 k. Other comparable 2-bedroom apartments in Balbriggan went for 190 - 200 k in the last month.

    In fact my interest is to keep the tenents, who were there for a few years now.

    And same is the interest of the agent - to sell to an investor rather than to an owner-occupier, - as the agent can keep receiving letting and property management fees, - myself being abroad.

    Do you smell trouble in such a case?


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    #4
    enricoh
    Registered Users Posts: 4,910 ✭✭✭enricoh


    Are the tenants on hap? I'd question whether the government will continue to pay such high rents into the future.
    My tuppence worth - I reckon there will be big financial potholes to fill in the next few years, who better to nail than the big bad landlord!


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    #5
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,953 Mod ✭✭✭✭Moonbeam


    yes, it should be a good investment. The demand for rental properties in Balbriggan is very high but the tax on rental income is too.


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    #6
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭John1648


    Moonbeam wrote: »
    yes, it should be a good investment. The demand for rental properties in Balbriggan is very high but the tax on rental income is too.

    The same income tax brackets apply, i.e 20%, minus quite a range of deductible costs.

    I recon a net 1000 out of 1400 gross.

    Some people advise against Balbriggan due to antisocial behaviour etc.


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    #7
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭John1648


    enricoh wrote: »
    Are the tenants on hap? I'd question whether the government will continue to pay such high rents into the future.
    My tuppence worth - I reckon there will be big financial potholes to fill in the next few years, who better to nail than the big bad landlord!

    Mmm, not sure if they are on hap. I am told this is a Polish couple, and I could see they maintain the apartment very well.


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    #8
    L1011
    Registered Users Posts: 68,778 ✭✭✭✭L1011


    OP - keep discussion of this to this thread alone please


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    #9
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭John1648


    This is the property I am considering to close the deal on

    https://www.property.ie/property-for-sale/17-Cardy-Rock-Drive-Cardy-Rock-View-Balbriggan-Co-Dublin/5077755/

    Is the area dangerous, repulsive or decaying?

    Can one get tenents on a regular mode? Is there at all demand for such rental properties?

    What if the Council stops renting from such landlords?

    Can repairs be costly?


  • Options
    #10
    Darc19
    Registered Users Posts: 3,817 ✭✭✭Darc19


    Thread #3 on the same subject.

    Error, thread #4.


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    #11
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,215 Mod ✭✭✭✭godtabh


    Why are you asking an Internet forum for advice on investing €200,000? Get professional advise. This sounds like you haven’t a close and a disaster waiting to happen


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    #12
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭John1648


    I seriously intended to buy right before covid kicked in.

    I stopped looking during covid, and then hoped, like many, that prices will go down.

    Now, the additional savings I have made in the meantime, were eaten up by the price increases. It seems that waiting longer can mean further price increases- hence my motivation to act. So I resumed the searches and analysis.

    Indeed, I am not experienced in buying to let properties, hence my appeal to the present forum. Many speak against being a small landlord ... plus many speak against Balbriggan or other areas within my budget.

    In one year I have been priced out of Tallaght, Balymun, Saggart, Finglas and Citywest.

    All options fell, apart from Balbriggan. Any advice would be much appreciated.


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    #13
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,953 Mod ✭✭✭✭Moonbeam


    As long as there is a massive lack of housing and social housing HAP will exist.


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    #14
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭John1648


    What is wrong with having HAP tenents? From a landlord perspective.

    What is the worst part?

    I am told that the Council pays rent on tgd last Wednesday of the month, like a clock.


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    #15
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    DubCount wrote: »
    This spells trouble. Why is the vendor selling (for a lower price than market rate) without evicting the tenants and gaining vacant possession?
    John1648 wrote: »
    Mmm, not sure if they are on hap. I am told this is a Polish couple, and I could see they maintain the apartment very well.

    Call me suspcious, but... why would a couple need that many sofas, that many dining room chairs, and that many wardrobes? There is enough of each for at least six people.

    I'd double check that there is only ONE couple living there.


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    #16
    [Deleted User]
    Posts: 14,344 ✭✭✭✭ [Deleted User]


    Buy the house OP. It's obviously a goldmine if the current landlord is doing a runner.


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    #17
    whomitconcerns
    Registered Users Posts: 4,358 ✭✭✭whomitconcerns


    We have a 4 seater, 2 single seaters and 2 2 seaters and there address only 2 of us. Nice to have options!


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    #18
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    whomitconcerns wrote: »
    We have a 4 seater, 2 single seaters and 2 2 seaters and there address only 2 of us. Nice to have options!

    Do you also have multiple wardrobes and a couple of double beds as options?

    The OP was told there was a couple living there but from the pictures it looks like more then one bedroom is occupied and there are more than two people living there.

    I'd just be wary of subletting, and as I'm sure you know, if someone has been subletting from a tenant for a while, they can ask to be put on the tenancy, and grounds for the landlord to refuse are slim.


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    #19
    gibgodsman
    Registered Users Posts: 569 ✭✭✭gibgodsman


    Deleted User wrote: »
    Call me suspcious, but... why would a couple need that many sofas, that many dining room chairs, and that many wardrobes? There is enough of each for at least six people.

    I'd double check that there is only ONE couple living there.

    Yeah, just looking at the pictures, the property SCREAMS that there is about 6-8 people living there, 4 Chairs at the kitchen table with another 2 just sat there, loads of sofas and far far too many wardrobes for 2 people


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    #20
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Sale agreed. Best of luck Op.


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    #21
    99nsr125
    Registered Users Posts: 1,183 ✭✭✭99nsr125


    John1648 wrote: »
    The same income tax brackets apply, i.e 20%, minus quite a range of deductible costs.

    I recon a net 1000 out of 1400 gross.

    Some people advise against Balbriggan due to antisocial behaviour etc.

    They're right


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    #22
    Mad_maxx
    Registered Users Posts: 13,503 ✭✭✭✭Mad_maxx


    i would not have the stones for BTL right now unless i planned to enter into a long term lease with the council , tenants simply have all the power

    i could however understand someone buying and simply leaving vacant as capital appreciation is likely


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    #23
    John1648
    Banned (with Prison Access) Posts: 112 ✭✭John1648


    Would you say buying a two bedroom apt in Ballymun, Charter building, for 200 k cash, currently let for 1450 EUR to a young single mother on HAP, is a cool, profitable and sound idea?


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    #24
    Bold Abdu
    Registered Users Posts: 212 ✭✭Bold Abdu


    I signed contracts on a 1 bed apt in Cardy Rock about 15 years ago - whenever it was built.


    I was lucky enough to get sick at the time so the developer allowed me to pull out with no penalty and also refunded my deposit. I was blessed - it looked like a bit of a dive a few years later when I went to see what I almost purchased.


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    #25
    Dodge
    Registered Users Posts: 10,285 ✭✭✭✭Dodge


    Darc19 wrote: »
    Thread #3 on the same subject.

    Error, thread #4.

    godtabh wrote: »
    Why are you asking an Internet forum for advice on investing €200,000? Get professional advise. This sounds like you haven’t a close and a disaster waiting to happen

    Clearly on a wind up. The latest evidence…
    John1648 wrote: »
    Would you say buying a two bedroom apt in Ballymun, Charter building, for 200 k cash, currently let for 1450 EUR to a young single mother on HAP, is a cool, profitable and sound idea?


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