buy to let using property365

[johnybravo]

I am considering becoming an investor in the property market but haven't got the nerve to go it alone. I was put in contact with this company 'Property365' through friends at the ICES meetings I attend.Their selling point is they source cheap property, find tenants and manage the property for you all for a fee.You pay them the fee make a profit every month and you have an asset that is rising in value.It suits me to start my property portfolio in this way as I ahve no experience and am a little nervous about taking risks- I need somebody to help me along.Has anybody dealt with this company? If so would they recommend them?

 

[murphaph]

you have an asset that is rising in value

Not a given johnybravo! Quite a few people are currently in a house with a bigger mortgage than they paid for the house.

 

[Blinder]

You pay them the fee make a profit every month

Is this guaranteed?

 

[gerry m]

Is it Irish or foreign property that they source?

 

[johnybravo]

All property is Irish although they can connect with an English company that provides the same service in England.They source houses which the rent will cover the mortage and then some.They don't advise people to invest unless the house pays its own way.

 

[gerry m]

surely in the current market you would need to put down a significant deposit for the rent to cover the mortgage? have they given any indication of the LTV they are talking about for the mortgages?

 

[Whiskey]

Not a given johnybravo! Quite a few people are currently in a house with a bigger mortgage than they paid for the house.

You mean a bigger mortgage than the house is currently worth ?
I'm not being smart

 

[gerry m]

what i meant was that for the rent to cover the mortgage you would need to be putting down a lot of cash ie have a smaller mortgage

 

[ubiquitous]

Their selling point is they source cheap property, find tenants and manage the property for you all for a fee.

Sounds like a typical auctioneer...

 

[starlite68]

i had a look at their web site.....to be honest it all seems a bit too easy. anyone with them during the boom would have probably made money,but in a falling property market its much harder now.

 

[Staples]

Surely any letting agent will offer the same service.

I'm sure some experienced property investors could offer a recommendation.

 

[johnybravo]

some of the houses they recommend cost around €115 -€160. The rents are listed as around €8,000 a year , giving a yield of around 6% (ballpark figures going from memory) Ideally they hope you get a mortage higer than what you need for the purchase; with what's surplus you can put a deposit on a second house and so on.Otherwise you can keep the excees cash and you have your deposit back!

 

[Scruffy Man]

JohnyBravo..... where have you been for the last 12 - 18 months? spend a sometime doing reserch b4 jumping in (actually..I suppose that's what your doing here).....start with the propertypin.com, lots of negative sentiment there but some of the guys know what they are talking about, also try the Daft.ie forum "Buying and selling"...lots of idiots there having personal attacks on each other but again lot of guys that really know there stuff.
Im my opinion, houses for 115-160 are not in the main city center locations, i.e. they must be in some obscure location. Plus, not sure if any banks will give you tons of cash so that you have a "SURPLUS" for the next investment.