Investment Property when we have no PPR

I

ice

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My partner and I find ourselves in an unusual position and would love some advice. We are a family of 4 on one income and rent a house in Dublin(1500 per month). For quality of life reasons we have decided to rent in Dublin until retirment. We do not want to move to a commuter town as we would not be happy there and there is no way we could afford to buy in the areas we want in Dublin. Am very happy with the concept of renting but the only problem is how to provide for accommodation upon retirement.

My partner has a defined benefits pension scheme and we have some cash in equity and fixed interest.

We are in a position to do any of the following:

1. Buy an investment property to the value of 250/300K with the view to renting it out and keep renting our house in Dublin.

2. Buy a reck of a place for under 200K and spend a few years doing it up and use it as a holiday home with a view to retiring there.

3. Keep putting all our spare money into equity(we will be back to double income next year or two)

With option one I am afraid that in the places we would get a property for max 300K that the rental market would not be that good.

With option three ...is it risky?

Has anyone any other creative ideas how to solve our longer term problem?
Cheers
 
Dublin Co Co and Fingal are currently running a scheme where you sign over your investment property to them to rent out. Minimum period 4 years, max monthly 1200, they will inspect the property and agree with you a monthly rental figure. They pay you even if they do not have tenants, this is their responsibility, you simply have to maintain the property. Properties Hartstown, Clonsilla etc can be bought for 250/300k, great rental area for facilities etc. Good Luck
 
Dublin Co Co and Fingal rental scheme sounds like a good idea, anyone doing this in kildare?
 
ice said:
1. Buy an investment property to the value of 250/300K with the view to renting it out and keep renting our house in Dublin.
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Do you have the cash to buy this or will you be getting a mortgage? If the latter will you be able to afford this and the rent? If the former why have you decided that property is the most appropriate investment route for your particular circumstances over and above all other options (e.g. equities)?
3. Keep putting all our spare money into equity(we will be back to double income next year or two)
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You mean into equity investments? What investment timeframe, attitude to risk/volatility, other debts/investments etc...?
 
Hi

Thanks for the replies...Trish that sounds very interesting ...will look into that.

Clubman, we have stress tested it for interest rate rises and inflation and are confident we can still meet the rent and pay the mortgage on an investment property. We would need to rent it although could afford to top up some of it if necessary.

Yes I mean equity investments. The idea would be to put all our spare money in there over a 30 year period or so and then at the end, when the kids are gone we would have enough to buy a small place somewhere for the two of us. Everyone seems to say that equity outperforms property in the long run?
We have no debts and would be looking for low to medium risk. We currently have about 70K in equity and about 30 in fixed interest.
 
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