Property Investment - to rent

J

JMC1

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Is it a good idea to invest in the property market now with a view to renting. With a view to selling in ten years. House price approx. 450,000 including stamp duty in midlands one hour and a half outside dublin.
 
Sounds pricy for the midlands. If you can fund the deposits and stamp, Why not invest in 2 properties for half the amounts and split your risk.

Shop around Cavan , Louth , Wexford...etc. Anywhere cheap and cheer full near to a university!
 
Thanks for that Kevin. The property is in Longford but as you say it may be better to split the money into two investments.
 
Kevin Brod said:
Sounds pricy for the midlands. If you can fund the deposits and stamp, Why not invest in 2 properties for half the amounts and split your risk.

Shop around Cavan , Louth , Wexford...etc. Anywhere cheap and cheer full near to a university!
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So there's an institute of Technology in Dundalk and what exactly in Cavan and Wexford? Cheap and cheerful near a university? Possibly Limerick...

You'd be splitting your risk by going for half property half something else - otherwise, all eggs in one basket. I wouldn't do it but I'm very risk averse.
 
@ Calina

Well I’m hardly going to suggest specific developments! Near Colleges was a general suggestion not specific to the counties I gave as examples.

@ JMC1

For example:

If the house you’re buying is worth 420k + 30k for stamp and a potential mortgage of 90% for 378k

Assuming its a 4 bed, maybe rental income 1200pm.

Total input equity: 72k

Why not buy 2 investments properties for around the 225k mark at 90% so mortgages of ~202k with deposits of total ~23k each, with stamp duty of ~9k each.

Total input equity: 64k

With potential rental income of maybe 600 - 700pm each.

Then your capital appreciation risk is spread as one property could do well while the other just does ok etc.

As opposed to just depending on one big property. That’s the type of risk spread I was getting at, also it allows you to access funds easier Eg you could sell one and keep one if things don't work out.

Assuming your salary can cover those amounts of course and you're not scared of risking it!
 
JMC1 said:
Is it a good idea to invest in the property market now with a view to renting. With a view to selling in ten years. House price approx. 450,000 including stamp duty in midlands one hour and a half outside dublin.
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This is not a Mortgages and Home Buying query so has been moved.
 
JMC1,

That is pricey for Longford. You could get 2 3-bed semi's in Longford town for that price. Anything outside the town can be slow to rent. The rental market in Longford town is strong and you could expect to get about e650 month. Check daft.ie or this property blog.
 
JMC1 said:
Is it a good idea to invest in the property market now with a view to renting. With a view to selling in ten years. House price approx. 450,000 including stamp duty in midlands one hour and a half outside dublin.
Click to expand...


I would say no,unless your expected net rent would cover your financing costs.
 
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