Brendan Burgess
Founder
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Hard to see it only making 85k with that yield ! 12.7% before outlay !
On a kinda similar note then, can someone explain this ad to me which looks like it's being auctioned for 80k reserve. Further down it states "The property is subject to a Tenancy at a rent of €10,800 p.a.". Does this mean that for a one bed apt you pay up to 80k for the actual lease and then 900 a month to actually live in it ? Sounds too mad to be true.
tenant is paying the owner 900 a month or 10,800 a year..
This is a return of 13.5% based on the reserve - not bad at all.
Do they post up afterwards what each actually sold for?
It's a leasehhold property but it's as good as freehold as it's for 999 years so that's what you are buying. Not to be confused with leasing a property, say like An Post/McDonalds leases a building from Bank of Ireland/Treasury holdings for 35 years.
As owner you pay a peppercorn rent. Might be a 100 Euro's a year or some nominal sum. Sometimes called ground rent.
The property is currently let and that tenant is paying the owner 900 a month or 10,800 a year.
In relation to buying a property with a sitting tenant, legally this was always not advised, maybe the situation has changed. I checked some of the properties on that list and found the rents mentioned to be realistic, based on my own knowledge.
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