Strategy needed for apartment buy...

stepbar

Folks,

Lets say you are aware of an apt that is on the market and that you know the following:

- It is a distressed sale
- The apt (1 bed) is currently rented @ c1k p.m and would be profitable after covering the mortgage on a 25yr basis (perhaps even 20yr). Also has a parking space.
- It is located within the M50.

Obviously, you are interested. What strategy would you take? (I'm purposely being coy about this one as for various reasons I don't want to disclose any further info). Just really interested in hearing some ideas, (I kinda know what I would do but obviously would like to hear some thoughts).

By all means read between the lines and hypotonise a bit....

mrgaa1

If you know them talk to them about the sale and see what they are looking for it and then decide if you want to pay that price or lower

bobbiw

stepbar wrote: »

Folks,

Lets say you are aware of an apt that is on the market and that you know the following:

- It is a distressed sale
- The apt (1 bed) is currently rented @ c1k p.m and would be profitable after covering the mortgage on a 25yr basis (perhaps even 20yr). Also has a parking space.
- It is located within the M50.

Obviously, you are interested. What strategy would you take? (I'm purposely being coy about this one as for various reasons I don't want to disclose any further info). Just really interested in hearing some ideas, (I kinda know what I would do but obviously would like to hear some thoughts).

By all means read between the lines and hypotonise a bit....

Doesnt matter if its a distressed sale or not. Its probobly going to drop another 20% in the next 6-7 months.

You will be able to rent apartments like that for 400 euro shortly.

AARRRGH

stepbar wrote: »

- The apt (1 bed) is currently rented @ c1k p.m and would be profitable after covering the mortgage on a 25yr basis (perhaps even 20yr). Also has a parking space.

I think it's dangerous to assume you'll always be able to rent it for 1k.

What happens if you can't get a tenant at all in a few years?

I know someone who bought an apartment in Sligo (not quite the M50, I know) who could easily rent it out a few years ago, now he can't get anyone...

whizzbang

With the social welfare paying rent up to €900 (for now) I'm not sure we are going to see rents drop much below €1000 for a while.

If the government drop this amount then rents will track down to meet the new floor.

jmayo

stepbar wrote: »

Folks,

Lets say you are aware of an apt that is on the market and that you know the following:

- It is a distressed sale
- The apt (1 bed) is currently rented @ c1k p.m and would be profitable after covering the mortgage on a 25yr basis (perhaps even 20yr). Also has a parking space.
- It is located within the M50.

Obviously, you are interested. What strategy would you take? (I'm purposely being coy about this one as for various reasons I don't want to disclose any further info). Just really interested in hearing some ideas, (I kinda know what I would do but obviously would like to hear some thoughts).

By all means read between the lines and hypotonise a bit....

May I ask if you learned about this property in your professional capacity as a banker ?

I would say buy, mrgaa1 has a good handle on the property game.

If it is yourself that is buying it, then you might be able to get the old favourable employee mortgage rates so should be well worth it

The_Conductor

whizzbang wrote: »

With the social welfare paying rent up to €900 (for now) I'm not sure we are going to see rents drop much below €1000 for a while. If the government drop this amount then rents will track down to meet the new floor.

Its fallen twice this year, thus far, and the limit varies considerably from one area to another.

Also- is that EUR900 limit for a 1 bed apartment? Seems ridiculously high imho?

stepbar

No. Move along there jmayo. Next please.

stepbar

whizzbang wrote: »

With the social welfare paying rent up to €900 (for now) I'm not sure we are going to see rents drop much below €1000 for a while.

If the government drop this amount then rents will track down to meet the new floor.

Interesting you say that. Certainly something to consider.

jmayo

stepbar wrote: »

Interesting you say that. Certainly something to consider.

Yeah the government won't have the money for their huge welfare budget anymore due to tying more and more taxpayers money into bailing out badly run banks

You can either have the taxpayer help you keep your job or pay for an investment property, but I am sorry the taxpayer won't be able to afford both :mad:

stepbar

jmayo wrote: »

Yeah the government won't have the money for their huge welfare budget anymore due to tying more and more taxpayers money into bailing out badly run banks

You can either have the taxpayer help you keep your job or pay for an investment property, but I am sorry the taxpayer won't be able to afford both :mad:

O I see. Hope you enjoyed your sad little rant. Move on. Stop digging. Dont really care for your opinion thanks very much. Now be a good little boy and leave the discussion. Thanks.

confuzed

strange post. I kinda know what to do. Want your opinion. And when someone wants to give opinion He says F** off
I don't know what kind of emotions should i express for this guy.
Should i laugh on his stupidity
Should I be surprised by his ignorance :eek:
better leave him alone

There is nothing to be discussed. Mod please lock this post.

bobbiw

Well dont worry, Stepbar doesnt sound very knowledgable and he really just wanted someone to back him up on a purchase decision.

Now that people tell him what a bad decision it would be he disagrees.

You will see apartments in Dublin city going for sub 100k very soon and I wouldnt be suprised to see some in the 50-75k range.

You can rent one beds in town for around 800 euro's if you look hard enough.

I thought the max the SW would give you was something like 5-600. Hmm

stepbar

confuzed wrote: »

strange post. I kinda know what to do. Want your opinion. And when someone wants to give opinion He says F** off
I don't know what kind of emotions should i express for this guy.
Should i laugh on his stupidity
Should I be surprised by his ignorance :eek:
better leave him alone

There is nothing to be discussed. Mod please lock this post.

Have you a problem? jmayo was not expressing an "opinion". He was being a smartarse. I'd expect nothing less from him. Now if you don't have anything else to say then I'd suggest you move along as well. Thanks.

stepbar

bobbiw wrote: »

Well dont worry, Stepbar doesnt sound very knowledgable and he really just wanted someone to back him up on a purchase decision.

Now that people tell him what a bad decision it would be he disagrees.

You will see apartments in Dublin city going for sub 100k very soon and I wouldnt be suprised to see some in the 50-75k range.

What post would you be talking about there? "disagrees"???

To be honest, you have no clue as to what knowledge I have or not. Again, like the other boys unless you have some positive / negative constructive comment to make (and not a veiled stab at me), I don't want to hear it.

BTW, thank you to the posters who have kept it to the point.

The_Conductor

Guys- if you disagree with what someone posts- REFUTE THE POST WITHOUT ATTACKING THE POSTER. Next person who insults someone else or breaks this very basic tenent in any manner- gets a ban without any warning.

S.

gurramok

You will need a 20% deposit.

That 900 ceiling is for a couple i believe, now how many couples will live in a 1bed?

You will not get 1000pm rent for it over 25yrs unless its well located a well-to-do-area.