# Buying Investment Property-Swords or Tyrellstown?



## janeymac (11 Mar 2006)

Hi, I'm looking into buying a second property for investment and was told it was possible provided it didn't cost more than 300 - 317K max. Was thinking about appt/house in Tyrellstown or Swords. Has anyone any advice on where's the best places to buy for under 317K that will rent well? Cheers.


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## brodiebabe (11 Mar 2006)

Tyrrelstown have a community website [broken link removed] It has a discussion board on it.  you may get some info. re. rental properties from it.


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## landlord (12 Mar 2006)

I would suggest you look at the second hand 2 bed apartments in Boroimhe Swords, opposite airside retail park. Guide prices are approx 300,000,but you will pay between 310,000 and 320,000 and can expect 1,000 rent.  With an interest only mortgage, the rent will more than cover the mortgage.  Boroimhe is the closest estate to the airport with a bus route going straight through it which services the Swords town, the airport and city centre. The Metro may also stop right outside the door of Boroimhe at the "Airside stop".  In terms of renting you will have no problem at all, I know because I have a few apartments there my self.  It seems that half of the airline staff live in there and the estate agents will confirm that Boroimhe is one of the most popular areas for renting.  I rented all of my properties there my self with in 2 weeks avoiding having to pay finders fees to the estate agent.  I had 30 phone calls for the last place I let there. Between daft and my home there are currently a few 2 bed apartments for sale. Good Luck


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## asdfg (13 Mar 2006)

> Hi, I'm looking into buying a second property for investment and was told it was possible provided it didn't cost more than 300 - 317K


 
Don't really see the significant of 317K. As an investor you have to pay the full rate. 

*Aggregate Consideration*
*_____________First Time Buyer *
*_________________Rate __________**Full Rate *
Less than €127,000___Exempt ___________Exempt
€127,001 - €190,500__Exempt ___________3%
€190,501 - €254,000 _Exempt ____________4%
€254,001 - €317,500 _Exempt ____________5%
€317,501 - €381,000 ___3% _____________6%
€381,001 - €635,000 ___6% ____________7.5%
Over €635,000 ________9% _____________9%


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## Loki (13 Mar 2006)

asdfg said:
			
		

> Don't really see the significant of 317K. As an investor you have to pay the full rate.


5% goes up to 6% what is there not to understand


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## asdfg (13 Mar 2006)

But why specifically mention 317K why not say 254K or 381K unless they  are mixing it up with the first time buyers of limit of 3%.


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## janeymac (13 Mar 2006)

Thanks for your responses, Landlord what about Ridgewood in Swords - do you think 2 bed houses are easy to rent here - I saw one or two for sale for 315K?


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## landlord (13 Mar 2006)

Well Ridgewood, just over the road from Boroimhe, and with the Tesco Express,  pharmacy, crèche and health suite, it has a lot going for it. As for rentals, expect the same amount as Boroimhe, approx 1,000 p/m for a 2 bed apartment.  Once again as with Boroimhe you should have no problem renting, Ridgewood, like Boroimhe is an airline ghetto and a bus stop just outside the development is convenient for the airport and Swords village (15 min walk to Swords village).  The Hertz head office is in Swords and I have had many rental enquiries from their staff.  Population growth here seems to be exponential and although there is plenty of rental properties in the area, demand for them is definitely keeping pace. 
I do think there are a few SLIGHT advantages of Boroimhe over Ridgewood:

The bus route 41c goes right through the middle of Boroimhe and the estate is slightly closer to Swords village and the airport .
In approximately 3-4 months the Boroimhe shopping centre will be open, which is at least 5 times bigger than the Ridgewood shopping centre.
If the Metro stops at Airside Retail Park (right out side Boroimhe), this will be a fantastic link to the airport and Dublin and hopefully will push up property prices locally.
I have lived, owned and rented property in Swords now for 4 years and have to say I would definitely recommend investing in property here.  I purchased a 2 bed apartment in Boroimhe a year ago for 220,000 and a few have recently sold at 320,000.  I personally believe that with the completion soon of the Pavillions shopping centre phase 2, the 11 screen cinema, Pennys, the expansion of Airside Retail park (including a possible metro stop), the expansion of the airport with a new terminal/runway etc….you can not go too far wrong with Swords. I would say from experience that this is a low risk area in terms of rentability (not a real word I know)  and high probability area of decent capital growth. Wow I should be an ambassador for this village or a local estate agent !! Oh and just to compare….used to live in Malahide and I would say the property prices here are very expensive compared with expected rent, but it’s a beautiful area. 
Perhaps others can give their views on villages/towns they would recommend for investment?


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## Zander01 (20 Jan 2010)

Finding a bargain investment property on paper is only half of the process of property investment.  I think Swords is one of the best areas. Property prices are very compared to other. It's a good property to invest.


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## jambo.ie (21 Jan 2010)

janeymac said:


> Hi, I'm looking into buying a second property for investment and was told it was possible provided it didn't cost more than 300 - 317K max. Was thinking about appt/house in Tyrellstown or Swords. Has anyone any advice on where's the best places to buy for under 317K that will _rent well_? Cheers.


Rent well is a subjective term.

Unless the property is generating a yield of more than 10% there is a negative risk that it will perform poorly versus interest rates over the long term.

If the yield is less than 10% but greater than the combined cost of interest rates and costs (including costed risks of void periods) then there is a postive risk that you will be looking at breaking even on a cashflow basis over the short term.

If the yield is less than the cost of interest repayments and costs (including costed risks of void periods) then you are looking at negative cashflow or a cashflow loss over the short term.

The latter two scenarios rely on capital appreciation to make the investment viable. You'll have to make your own decisions on whether the property is likely to increase in value significantly over the course of the investment and whether interest rates will rise. Are there benefits to taking a short to medium term loss for the possibility of a long term profit?

Gross yields on EUR 317,000:
10% equals annual rent of EUR 31,700 or EUR 2641.66 per month
5% equals annual rent of EUR 15,850 or 1320.83 per month
3.8% equals annual rent of EUR 12,000 or EUR 1,000 per month


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## Buddyg (21 Jan 2010)

I wonder did the OP buy in Swords. Lets look at how this invesment might have performed

Purchase: 310K
Value now: 200K?

So they would have lost about 40K a year on depreciation for a place that now rents for 800pm if you can get it. Nearly 200 properties for rent in Swords now on Daft. Lord help them if interests rates actually come up from their record lows.


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## jambo.ie (21 Jan 2010)

I didn't check the date on the thread.


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## Billo (21 Jan 2010)

Buddyg said:


> I wonder did the OP buy in Swords. Lets look at how this invesment might have performed
> 
> Purchase: 310K
> Value now: 200K?
> ...



janeymac


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