Thank you cremeegg!Broadly speaking this seems a fair summary of what you would get for your money. Your question 'would you recommend going for this investment ' really is a matter of choice.
Some observations.
A single mother on HAP is unlikely to be a problem tenant. All going well for her she will eventually get a council tenancy, thats the gold standard and she will do nothing to risk that such as not paying her rent etc. That said if the tenant does not pay their element of the rent to the council, the council will not pay you anything.
If I had €200k and it was hard earned I wouldn't be giving €1,500 to a letting agent, especially if I had a sitting tenant.
Does Ballymun sound all right ?
Thank you, yes, that's the accountant. you are right indeed, it is deductibleI think your plan makes sense.
By the way,
"Tax advisory services: 250 EUR"
That's the accountant? That's also tax deductible.
It's a good yield, but you will get >10% for the same type of property outside Dublin, with much the same risk level.
If you are living abroad anyway it shouldn't matter much.
So you'd accept an 8% yield over a 10% yield today because rents might fall in future? As long as it has been measured, yields outside Dublin, and on apartments, are higher.the first rents to dive are those outside Dublin
So you'd accept an 8% yield over a 10% yield today because rents might fall in future? As long as it has been measured, yields outside Dublin, and on apartments, are higher.
If I wanted to build a rental portfolio in Ireland (and I very much don't!) I would pick apartments outside Dublin.
In my view (over the very long run) tax-relieved pension investment provides a better return. But it depends on your circumstances and time horizon. Rental yields in Ireland are very high compared to most of Europe, and your non-resident status means you don't pay much tax.Why would you abstain from building a rental portfolio in Ireland ? For the above reasons?
@John1648
If you are buying for the long term you should pay your €200k and forget about prices (and even rents) in the short term. You have no leverage so no risk of negative equity or a bank on your case.
Trying to predict future trends in rents both nationally and locally is hopeless. Is 6% a good risk-adjusted net yield right now for you? If you think yes, then go for it, and hold for a long time.
In my view (over the very long run) tax-relieved pension investment provides a better return. But it depends on your circumstances and time horizon. Rental yields in Ireland are very high compared to most of Europe, and your non-resident status means you don't pay much tax.
I dont think this is true and I was a landlord at the time, though not in Ballymun or Dublin. Rents weakened certainly and voids of a few weeks happened, but rents never rollercostered the way purchase prices did.during the crisis times, rents went to less than half of what they are now - or landlords could plainly find no tenants for years
Low rates for the foreseeableP.s. - some say a significant downward correction in real estate prices in Ireland is due - so then I would need to wait for a year - to buy the same property for 125 k instead of 200k.
I personally do not see this happening anytime soon. After reading tons of info - the outlook for a couple of years more is - one way only - up! - for the prices.
There could be desperate - and doomed - attempts by say - SF, or other parties to limit / cap the prices / rents etc - but this will not work - or will screw the markets - by creating even more deficits and a black market for rentals - or driving black rents even higher. Look at Berlin e.g.
who knows Inflation is rising ,Low rates for the foreseeable
I'd love to know the non payment percentage of rents to councils, and if they can't collect their rents how are you going to do it? People renting are very savvy in knowing what the house owner can and can't do and any individual thinking they can just go, buy a house/apt, then rent it out and live happily ever after is living in cuckoo land. If I had €200k in my back pocket the last thing i'd do is buy a property for rent in any part of Ireland. Don't go asking me why, just go and do it and you'll find out soon enough.P.s. - some say a significant downward correction in real estate prices in Ireland is due - so then I would need to wait for a year - to buy the same property for 125 k instead of 200k.
I personally do not see this happening anytime soon. After reading tons of info - the outlook for a couple of years more is - one way only - up! - for the prices.
There could be desperate - and doomed - attempts by say - SF, or other parties to limit / cap the prices / rents etc - but this will not work - or will screw the markets - by creating even more deficits and a black market for rentals - or driving black rents even higher. Look at Berlin e.g.
I'd love to know the non payment percentage of rents to councils, and if they can't collect their rents how are you going to do it? People renting are very savvy in knowing what the house owner can and can't do and any individual thinking they can just go, buy a house/apt, then rent it out and live happily ever after is living in cuckoo land. If I had €200k in my back pocket the last thing i'd do is buy a property for rent in any part of Ireland. Don't go asking me why, just go and do it and you'll find out soon enough.
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