property return

G

georgebush

Guest
I'm, looking at a property with these details.
4 bed with room for a garage
opposite a green
big (cant remember sq ft 12/1300 !) & well built (5 yrs)
5 mins walk to railway station in D15
4 young Irish male tenants 1300/m if I want them
neighbour says they are quiet
if not then house would need repainting and flooring immediately
mortgage 200K and I come up with 225 k from Pbonds, shares and cash
or can do int only for more and keep some of my cash
SSIA due next june and I have a little cash left
no other loans or commitments and steady stream of income
5 years from retirement at 60
possible cap appreciation lower that a lower priced house.


I could go for a house in Hartstown/Huntstown/Rusheeny for 300k, not near railway line but on good bus routes and get same rent and maybe more cap appreciation over 5-10 yrs

Am I mad!

I really need some advice

George
 
Hi George - Have a read of the Guide to get an idea of some of the alternatives to property investment which are open to you.

Have you checked out the numbers for your investment, taking into account the tax impacts, the likely vacant periods, the maintainance costs etc?
 
Also bear in mind that dublin 15 has some of the lowest rental income in Dublin.
 
Some things to consider

Purchase price of house 425,000
Stamp Duty ------------ 40,000
Legal Exps ------------- 2,000
Other ------------------- 2,000
Total -----------------469,000

Rental Income ----------15,000
Less Expenses ----------(2,000)
Mortgage Interest-------(7,000)
Capital Allowances
Other ------------------(1,000)
Rental Income before Tax 5,000
Tax * 42% --------------2,100
Rental Income after Tax 2,900

Remember you will have to pay out the above in order to claim against tax.
The mortgage repayments are over 1,200 on a mortgage of 200,000 over 20 years on a repayments basis (the interest element @ say 3.5% is 7,000)
In the above I have not made allowance for vacancy rates
The 269,000 (225 +40+4) that you have to raise if invested in rabo bank would return about 8,070 gross 4,680 nett at 42%
 
many thanks for the work andf effort

Actual property price is 390k, I included all the extra costs
 
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