Advice needed please - re practicality of buying a property near to UCD

brissle

My grandson is in Halls for his first year at UCD.

It is likely he will have to rent for the next 3 years.

I'm wondering - if I can raise the cash - whether it would be practical to buy a property close to UCD which he could use and rent out spare rooms to other students.

This is totally new to me and I would be grateful for advice from others who have done this. Obviously it's a purely financial calculation.

Is this the best forum to ask this question?

DubCount

Thats a lot of cash to raise for a start. South County Dublin is an expensive place for buying property.

I would think its only going to make sense if you want to rent out the property past the 3 years your grandson would be there. 3 Years is a very short timeframe for a property investment. There is a large cost of entry and exit to property (stamp duty, legal fees, surveyors etc.)

Speak to an independent investment advisor. It might make more sense to invest elsewhere and use the profit you make to subsidise your grandsons rent, for example.

SwimClub

Have a look into some of the posts around small landlords fleeing the market, the eviction ban, difficulties evicting problem tenants, rent controls, difficulties in dealing with the RTB to even register your property, the continuously changing rental regulations with high penalties for getting any of them wrong etc. There are taxation issues around gifting to a relation, all the tenants renting are just normal tenants, subject to ever changing tenancy law and you might never be able to get them out of the property even if your grandson wanted it for himself or you wanted to sell it.

Most small landlords are getting out at the moment for these reasons, if you need financing/a mortgage I wouldn't go near the private rental market at the moment.

brissle

Thank you both, for your thoughtful replies.

Superficially it looked like a good idea, but I hadn't thought through the potential complications of being a landlord.

We've already offered to pay for his accommodation costs, so I had that money "in hand" plus some savings which are earning very little interest.

I hadn't thought through the potential risks if owning a rental property - and as a UK resident would be doing everything from a distance.

The tax implications might be a challenge.

Yes, I need to talk to a financial advisor.

Many thanks for your input.

herbalplants

https://www.boards.ie/discussion/comment/120113524#Comment_120113524

As a tax resident then you won't pay high tax on rent income, just 20%.