investing in dublin 8

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darranstore

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Just checking out a few things on the site and noticed this forum. I work for a company that outfits rental property so ive been fairly involved in the rental game tho have never bought a rental property and having just completed some properties on cork street am looking to buy one. its a fantastic spot for high rents as in one of the apts. i did let withing hours for 1200 a month (thats for a one bed with no carparking) seems a good return to me and there was people fighting over the properties so the demand is defently there. this will be my first investment property so any advice re mortgaes or best banks to go with would be appreciated..and aswell as that with all this downfall stuff people are saying is it actually a good time to buy off plans?
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1 bed in Dublin 8 for 1200 with no parking and a queue of renters?? That's not you Douglas, Newman, Good, Sherry Fitzgerald, Hamilton, Osborne, King is it???
 
ye i know i couldnt believe it... now id done it to a pretty nice spec and we had 5 viewings the day before completion and they all wanted it and it went the next day for 1200.. thats would well cover and interest only mortgage and there waqs someone in it before the first mortgae repaymeny came out. id buy a couple of them if i could even in the current market, why not have someone in there paying your mortage off for you. alot of decent polish people to to rent around town and not enough places for them to rent !
 
darranstore said:
why not have someone in there paying your mortage off for you.
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With an interest only mortgage nobody is actually paying anything off. Your plan only makes sense if there is future capital appreciation. Sounds like a high risk, low return strategy... but then it's your shirt.
 

What price are these properties to purchase so that you can calculate likely gross/net yield?
 
darranstore said:
why not have someone in there paying your mortage off for you. !
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In agreement with Afurea, neither you nor your tenants are paying off the mortgage. You're just paying €1,200 'rent' each month.
 
ye, i might have worded that wrong, aware that knowone is actually paying off the mortgage tho hoping in the current market that the property may actually rise over the term of the interest only. its a risk alright.... you would pic up a property on cork street (one bed) starting at 300,000 or so. but rents around that area really do seem to on the rise and there is a very high demand....
 

So a gross yield of nearly 5%. Definitely seen worse yields in the Irish property game. Personally I'd still be inclined to hold off and see if rents really do continue to rise, at which point the yield might start to become even more attractive.
 
and what happens to valuations and rents when the section23 tax incentive schemes expire in those and adjacent areas ?
 
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