Beattie - You're making the fatal assumption that Irish Property Speculators (I know of very few Property *Investors*) act rationally.beattie said:Since it is possible now after yesterdays ECB decision to get an after tax yield of 2.76% (gross rate of 3.45 with Northern Rock) will this cause a lower amount of buy to lets to be bought this year as yields from rental property are continuing to fall
Well as we don't actually know what effect the investors are having speculating on the effects of the change in an unknown quantataive effect seems pretty difficult to do.beattie said:Since it is possible now after yesterdays ECB decision to get an after tax yield of 2.76% (gross rate of 3.45 with Northern Rock) will this cause a lower amount of buy to lets to be bought this year as yields from rental property are continuing to fall
Loki said:A good buy will make you a return given time.
Calina said:True. But you can only really identify a good buy with the benefit of hindsight.
Completely agree there. Buy a house beside airport land don't be surprised when the airport expands, not hindsight but foresight. Buy a house close to a college and hospital you can rent to students and hospital staff unlikely the college and hospital will close even in the long term.SteelBlue05 said:Not true, you can identify most good buys up front. If you even stick to the ol' "location, location, location" principal you'll identify most good buys quite easily.
That is a gross over-simplification if you are speaking as an investor rather than an owner occupier.SteelBlue05 said:Not true, you can identify most good buys up front. If you even stick to the ol' "location, location, location" principal you'll identify most good buys quite easily.
The thing is I know many bigger investors (5+ properties) and on most of their properties they are getting 90% of the rental income on properties by haveing loss making properties. Own 3 properties outright then buy 2 other properties with mortgages and you get intrest relief on all your rental income. You don't even need to rent out the property to be making profit. Even is 64% is right what level of not reaching? 10% orsoma said:While Loki will probably whine about anecdotal evidence, I currently know two amateur speculators (altho of course they think they are 'investors') currently making a loss on their buy-to-let properties - altho neither of them are anywhere near as bad as the above. Throw in the fact that a report quoted earlier in this thread (apologies I cant remember which one/the name..) said only 64% of buy-to-let owners said their rents covered their expenses.. this does not bode well.
Assuming you can actually get a yield out of those properties that beats even a deposit account.Loki said:Buy a house close to a college and hospital you can rent to students and hospital staff unlikely the college and hospital will close even in the long term.
soma said:Assuming you can actually get a yield out of those properties that beats even a deposit account.
soma said:That is a gross over-simplification if you are speaking as an investor rather than an owner occupier.
soma said:That is a gross over-simplification if you are speaking as an investor rather than an owner occupier.
There is no guarantee that for example houses in the most sought after suburbs such as d4, blackrock, ranelagh etc (which currently have prices in the stratosphere) will still be selling for the same or greater than (inflation-adjusted) amount in 10 years.
The guy who said it was as easy as "location, location, location".Loki said:Who said they were good buys.
So I picked some nice locations..SteelBlue05 said:If you even stick to the ol' "location, location, location" principal you'll identify most good buys quite easily
..in one of which I rent a lovely 3 bed house for a fraction of the purchase cost, and write the rent off as a business expense, investing the money saved.soma said:suburbs such as d4, blackrock, ranelagh
soma said:The guy who said it was as easy as "location, location, location".
Duplex said:Ya cant beat long term, it both soothes the need to engage the rational faculties and transports the day of reckoning to some unspecified date in the future, powerful stuff.
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