# 20-25k houses in Ireland



## delanest (22 Apr 2014)

There are a number of these out there, in Longford for example, that seem to be in good livingcondition and taking in approx 400 per month.

It would be a first property investment outside an appartement Used
As primary residence. 

As a cash investment what are the main risks people see with doing this?


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## Drakon (22 Apr 2014)

I've noticed this.  Plenty of houses for less than €50k within an hours commuting drive of Cork city.
Apart from the plethora of usual landlord risks, my main concern would be the existing tenants moving out, then not being able to re-rent it.  Research the market thoroughly, I'd say.  But as a cash investment, it does seem to have potential.


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## delanest (22 Apr 2014)

Thanks Belton, I just want to make sure I'm not missing something very obvious here. I appreciate the level of running around and potential costs involved from letting a place.

Longford may not be the best example but seems like there are a number of areas for consideration. Wondering has anyone else done this recently?


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## facetious (22 Apr 2014)

Some of those "cheap" houses in Longford, you wouldn't weant to be seen dead there - or you might be. 

Price also depends of location - and some of those areas in Longforf town, even the Garda don't like going there.


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## thelimit (22 Apr 2014)

facetious said:


> Some of those "cheap" houses in Longford, you wouldn't weant to be seen dead there - or you might be.
> 
> Price also depends of location - and some of those areas in Longforf town, even the Garda don't like going there.


i'll 2nd and 3rd that 

know longford well very well and places you speak of do exist believe me very tricky areas and renters can move within a few weeks 

there selling at 20k to 25k for a reason


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## delanest (22 Apr 2014)

I take that point. I called one today and when I asked about what the area is like he literally said 'it's ****e'.got to  love Ireland. 

Anyway the point was more about the price of houses and investment potential, not so much Longford specifically. I Spent a few hours researching today and I'm coming to the conclusion that the type of out of the way property in a rentable condition is more in the 25-50k bracket.


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## thelimit (22 Apr 2014)

delanest said:


> I take that point. I called one today and when I asked about what the area is like he literally said 'it's ****e'.got to  love Ireland.
> 
> Anyway the point was more about the price of houses and investment potential, not so much Longford specifically. I Spent a few hours researching today and I'm coming to the conclusion that the type of out of the way property in a rentable condition is more in the 25-50k bracket.



my advice would be research it in person check the area out etc

i was offered newish appartments in what was once ( tiger era) a new up and coming private estate 

the appartment where offered to me for between 10k and 12k i laughed and walked away not even for that amount would i invest


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## twofor1 (22 Apr 2014)

delanest said:


> As a cash investment what are the main risks people see with doing this?



I have recently sold an investment apartment in the north east and consider myself lucky to have been able to get out.

I had to insure the property, register tenancy’s with the PRTB, travel to the property frequently for viewings maintenance etc, maintain the property as well as the appliances, furnishings etc, pay the management fee, pay for utilities during vacant periods, pay property tax as well as tax and USC on any rental profit, then there is the difficult / troublesome tenants who are plentiful.

Being a higher rate tax payer with a small mortgage, I probably only made €1K annually when renting it, this was for a lot of stress and lost time dealing with all the administrative / letting / maintenance / travel associated with being a landlord.

I suppose it was still a profit, but I think there has to be easier ways to get a better return on your cash.


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## serotoninsid (22 Apr 2014)

@thelimit:  Wanted to pm you and ask you what you felt were the ugly areas in L'ford town but can't seem to be able to do that.

Have an offer in - on a certain property in the town - which I thought looks like a decent area - but I'm not local - so perhaps I'm misguided...


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## thelimit (22 Apr 2014)

@serotoninsid

not sure how the pm thing works on here tbh, would be happy to help you if possible


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## thelimit (22 Apr 2014)

@serotoninsid

just managed to send you a pm


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## Drakon (22 Apr 2014)

twofor1 said:


> I had to insure the property, register tenancy’s with the PRTB, travel to the property frequently for viewings maintenance etc, maintain the property as well as the appliances, furnishings etc, pay the management fee, pay for utilities during vacant periods, pay property tax as well as tax and USC on any rental profit, then there is the difficult / troublesome tenants who are plentiful.



Nothing out of the ordinary here, these fall under the category "the usual".  Fortunately most are tax deductible.



twofor1 said:


> Being a higher rate tax payer with a small mortgage, I probably only made €1K annually when renting it


Mortgage?  Entirely different situation to what the OP writes about.


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## Bronte (23 Apr 2014)

Belton said:


> Nothing out of the ordinary here, these fall under the category "the usual". Fortunately most are tax deductible.
> 
> Mortgage? Entirely different situation to what the OP writes about.


 
You're not listening to Twofor1's valuable experience as an actual landlord.  Even if there is zero mortgage the return might not be worth it.  

Delanest needs to clarify all the costs.  

As a landlord myself I'd probably turn down a property in a bad area of town in a place like Longford as an investment even if it were free.


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## Brendan Burgess (23 Apr 2014)

Bronte said:


> As a landlord myself I'd probably turn down a property in a bad area of town in a place like Longford as an investment even if it were free.





serotoninsid said:


> @thelimit:  Wanted to pm you and ask you what you felt were the ugly areas in L'ford town but can't seem to be able to do that.
> 
> Have an offer in - on a certain property in the town - which I thought looks like a decent area - but I'm not local - so perhaps I'm misguided...



I think it's very unwise to be buying property in an area you are not familiar with.  Property investment is an active business not a passive investment. You need good local knowledge to maximise your profits.


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## Brendan Burgess (23 Apr 2014)

http://businessetc.thejournal.ie/property-ireland-1416536-Apr2014/#slide-slideshow4

Here are 11 properties for sale under €75,000


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## serotoninsid (23 Apr 2014)

Brendan Burgess said:


> I think it's very unwise to be buying property in an area you are not familiar with.  Property investment is an active business not a passive investment. You need good local knowledge to maximise your profits.


Agree completely.   L'ford is an hours drive away from me - I just have never had much occasion to go there in the past.  I've been trying to bring myself up to speed as regards the various aspects re. local rental market (which is on the floor right now) and the area I'm looking at. I've visited it numerous times - at various times of night and day, etc - and it looks fine as an area. 

In any event, the last thing I was told was that my offer was outbid (whether true or not time will tell) but I've set my limit - so not bothered right now.  If I get the green light, I'll intensify my research of the area and the actual property before signing anything.


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## delanest (23 Apr 2014)

Bronte said:


> You're not listening to Twofor1's valuable experience as an actual landlord.  Even if there is zero mortgage the return might not be worth it.
> 
> Delanest needs to clarify all the costs.
> 
> As a landlord myself I'd probably turn down a property in a bad area of town in a place like Longford as an investment even if it were free.



In my situation I would be looking at cash purchase. Costs would be the usual costs insurance/management fees, maintenance, tax .etc.

Some good points there about getting a place that is not too far away from where you are living.


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## Bronte (24 Apr 2014)

delanest said:


> Costs would be the usual costs insurance/management fees, maintenance, tax .etc.
> 
> .


 
That's a pretty broad sweep there Delanest, how about posting actual figures?  It's actually something one would hope you have already done before 'investing'.  

And then there is the perinnel question, are you cut out to be a landlord.


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## Drakon (25 Apr 2014)

Bronte said:


> You're not listening to Twofor1's valuable experience as an actual landlord.  Even if there is zero mortgage the return might not be worth it.



It's far easier to absorb costs when you're not paying a mortgage.
As a landlord I'd much prefer that I owned the house outright than have to spend most of the rental income on paying the mortgage.  Plus, any maintenance is required I would have more financial breathing room.



Bronte said:


> And then there is the perinnel question, are you cut out to be a landlord. [sic]


I'm certainly not cut out to be one, but I've fallen on my feet and so far, so go.  If I hand't this good fortune I'd have used a letting agency.  Yes, this eats into profits, but it gives those not cut out the opportunity to be landlords.


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## Dermot (25 Apr 2014)

I know Longford quite well and would help anyone that needs advice.  There are quite a number of medium to bad estates in Longford.  You would need to be quite careful even in good estates as you have very dodgy characters looking to get into the good estates.  You will be very dependant on Foreign Nationals and Social Welfare clients. Rents are quite low and local knowledge is invaluable. 
I totally agree with the comments of facetious.
A lot of good advice from all the other contributors.


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