Investment Property - Limerick

Peadar said:
Thanks Zardebt, your advice was appreciated and is being acted on.

Just a quick question, what does NRA mean?

Non Rental Appreciation??
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Sorry Peadar,

It means No Rent Allowence ..........or Rent Allowance Not Accepted.....

look at the daft.ie and see the amount of landlaord who don't
accept rent allowance .....

it must be distressing for someone who depends on the allowance!

Zar-debt
 
This is a long-term investment. You seem to be thinking about one tenant. You need to think about tenants for the next 10 years. You need to think about how long the property is going to be vacant for between tenants. You need to consider the impact of tax on your investment.

Peadar said:
I don't see how I am engaging in social welfare fraud.
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No-one suggested that you were 'engaging' in SW fraud. I did suggest that you were considering an investment whose success seems to be largely dependant on ongoing SW fraud by your tenants.

Peadar said:
The ideal situation for me is someone on rent allowance who is legally entitled to get it, then I have no worries about the dept. of social welfare moving in. However, being honest, if the property isn't renting I wouldn't exclude single mothers who move their boyfriend in as well.
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Charming - so you're prepared to facilitate SW fraud by your tenant in order to make your investment work. This is the unattractive under-belly of 'rip-off Ireland' where property investors (amongst others) are prepared to rip-off compliant taxpayers. I'm not clear if you have any legal liability in this scenario, but you certainly carry ethical responsibility for this fraud.
 
you know Peadar is also providing a services that other landlords are not prepared to do so !!!!!! why do we always see the negative side of things :-(
 
zardebt said:
you know Peadar is also providing a services that other landlords are not prepared to do so !!!!!! why do we always see the negative side of things :-(
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Drug-dealers provide a service that pharmacists are not prepared to provide - Should we look positively on those too? [I'm not equating Peader with drug-dealing - I'm explaining a point of principle]
 
Rainyday,

I think in fairness to Zardebt he was referring to landlords who were prepared to rent to Rent Allowance recipients rather than people prepared to rent to social welfare frauds.

You are right to in your other point about facilitating fraud, ethically and morally I am really obliged not to accept tenants who I know are frauds whatever about the law. I will be looking for tenants who are fully social welfare compliant. The real test for me will be 6 months into the investment if I have no tenants and someone applies for the house who is a social welfare fraud.

Just as a matter of interest, would you be able to report someone you knew who was engaged in this type of fraud? I know that I wouldn't have the courage, and I know people engaged in it.

Thanks for your points, I must admit you have twigged at my conscience.

Peadar
 
Hi Peader

It's not just a matter of conscience - it's also a matter of cold, practical investment policy. Do you really want to get into a long term investment which may well be dependant to some extend on SW fraud for its success. What if the extreme-right PD's hold the balance of power and Ms Harney resurrects her [broken link removed]. What if there is a crank like me living opposite you who is only too happy to report you?
Peadar said:
Just as a matter of interest, would you be able to report someone you knew who was engaged in this type of fraud? I know that I wouldn't have the courage, and I know people engaged in it.
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While I haven't been in that actual circumstance, I'd hope that if it ever happens to me, I will be prepared to report such activity. Would you report a drunk driver? or a politician taking back-handers?
 
Peadar,

I really can't see how anybody could consider how you as a landlord could be facilitating fraud. You would have a rental agreement with the tenant. How she or indeed he is assisted with the rent and what conditions are attached to the assistance shouldn't be a concern for you and really it is not any of your business.

I've a great tenant on rent assistance who looks after my property very well and only contacts me when absolutely necessary. I couldn't care less who she may or may not have staying with her from time to time.

I think when it comes to the government cracking down on fraud there are many other bigger fish to fry. How many cash orientated business fully declare all their income? Very few I'd say, if any.

I certainly hope when or if the Government ever gets around to cracking down on these cash business's that they go after the accountants and financial advisors who facilitating this fraud.

Taxi drivers earning 60k plus and only paying in the order of hundreds in tax is not uncommon. I don't have the figures for other cash business's but it's probably much the same.

Oh and while I'm on facilitating fraud, what was the Sunday's Business Post series of articles detailing the checks that revenue carry out on various cash business's all about? I'd say every shop keeper, publican, GP etc couldn't wait to get hold of a copy.
 
Hi,

Just an update on my progress. Bought run down property in ex-council estate in limerick, put €20,000 into with the intention of actually selling it on, but we put a trial ad in the local paper and there was such a response we decided to let it out. We got 25 enquiries within 24 hours.

The property was in a very bad state when we bought, apart from a small extension onto the kitchen the owner had not revovated the house which was built in the 1950's, so we had to put a lot of work in.

We are letting to a single mother with 2 kids who seems like a nice person, so hopefully she'll look after the property and maintain it.

Purchase Price: €100,000
Upgrade :€20,000

Total Cost :€120,000

Rental Income €700 per month


Thanks for all advice on the topic, really helped me out in the initial stages

Peadar
 
If you're still out there Peader, how are things working out ?

I am in a similar position ( just completed a refurb in a city centre location) and am considering taking in an RA tenant as well. I have nothing against RA in principle but "NRA" seems to be so widespread as to be accepted norm.

Rgs

Enda Storey
 
Enda Storey said:
If you're still out there Peader, how are things working out ?

I am in a similar position ( just completed a refurb in a city centre location) and am considering taking in an RA tenant as well. I have nothing against RA in principle but "NRA" seems to be so widespread as to be accepted norm.

Rgs

Enda Storey
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The house beside me was rented out to Social Welfare tenants for a while,the "boyfriend" crashed into their front wall,they did a runner with 3 months worth of cheques,took every piece of furniture and left about 20 bags of rubbish in the house.
Oh how i laughed when the landlord told me,serves him right for moving a pack of scumbags into our estate.
Not everyone is bad of course,just make sure you check them out.
 
Scary stuff. I guess it could happen with any tenant, have to be absolutely sure of the bona fides beforehand.
 
Hi Enda,

It's going well so far, the girl we have in there is lovely, she's from the area and her mother lives up the road from her so it suits her fine. Small few teething problems that every tenacy has, especially with a recently renovated house, leaking pipe, drainage etc. but overall going well.

They were very impressed with the house, new floors, windows, furniture etc. and she seems to be a good tenant.

In general there is a lot of single mothers out there and Rent Allowance tenants, we were prepared to wait a long time if we had to in order to get the right one. If you get a messy tenant they could break your heart. We did plenty of research and checked our tenant before we let her in. Local knowledge would help in that regard as well.

Peadar
 
Good man Peadar.

I was also flooded with requests and will sift carefully through them but won't reject RA out of hand.

Rgs

Enda
 
Peadar said:
Hello,

I just wonder if anyone might have an opinon on this. Looking at a house in a housing estate in Limerick city (Garryowen), know the area pretty well. It would have been built in the 1950's, and prices are relatively low. The house we are looking at is €100k and we'd be looking to put down a €10k deposit. Rental demand is strong in the area especially from single mothers, so we'd be looking at taking in someone on rent allowance, generally landlords charge a bit more for this, so the average rent allowance rent would be €650 to €750 per month.

The yield on this property would be over 7% and we'd be in this for the long term, not speculating on short term rises.

With all the speculation on property prices, do you think it's a bad time to invest in any property in Ireland?

Any opinons on whether this would be a good investment from the figures provided.

Thanks
Peadar
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Peader,
I did something similar about three years ago. You would not believe what damage a single mother with one child(allegedly)could do. I threw out the contents,redecorated and sold. You might be better looking at Brierfield in Castletroy.
 
Too late Nollaig, if you read the rest of the thread I've already bought the house and I am currently renting it out to a single mother on Rent Allowance. She has been well vetted and I believe she wil be a good tenant, but as you know there will always be risks.

I wouldn't buy in Briarfield or any part of Castletroy with the amount of student accomodation being built up there. I've heard landlords are struggling with vacancies at the moment, as there is an oversupply in the rental market.

Peadar
 
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