Thinking of buying house to let in Sligo

caseman

new to the property game wondering anybody know about the rental market in sligo its a 2 bed in an older part of town not far from town center any advice would be much appreciated

Tigger

what street

saywhatyousee

caseman wrote: »

new to the property game wondering anybody know about the rental market in sligo its a 2 bed in an older part of town not far from town center any advice would be much appreciated

Believe it or not there is a chronic shortage housing in an around sligo(i am looking to rent now)anywhere close to town should be easy to flogg.
Just make sure if its in a older part of town check for mould ect some of them houses are really old.You should be able to rent it for 550-700 a month depending on condition

caseman

Tigger wrote: »

what street

st michaels terrace 2 bed what rent would you think

brianthebard

saywhatyousee wrote: »

Believe it or not there is a chronic shortage housing in an around sligo

I don't believe it, unless you are looking for something very specific.

caseman

caseman wrote: »

new to the property game wondering anybody know about the rental market in sligo its a 2 bed in an older part of town not far from town center any advice would be much appreciated

Don't, house prices have not bottomed out yet, looney time to buy. Especially buy to let as you don't need to do it, some folks can put a decent rationale behind buying a home but buy to let is madness at the moment.

saywhatyousee

brianthebard wrote: »

I don't believe it, unless you are looking for something very specific.

Unless your willing to live in rathbraughan there is actually nothing much out there

Tigger

saywhatyousee wrote: »

Unless your willing to live in rathbraughan there is actually nothing much out there

There ar a few nice ones here

http://www.daft.ie/searchrental.daft?search=1&s[cc_id]=c22&s[a_id][0]=3288&s[route_id]=&s[a_id_transport]=0&s[street_name]=&s[txt]=&s[mnp]=&s[mxp]=&s[mnb]=&s[mxb]=3&s[pt_id]=&s[move_in_date]=0&s[lease]=&s[furn]=0&s[npt_id]=&s[days_old]=&s[single_beds]=&s[double_beds]=&s[twin_beds]=&s[agreed]=&s[search_type]=rental&s[transport]=&s[advanced]=&s[price_per_room]=&s[refreshmap]=1&offset=0&limit=10&offset=10&fr=default

Considering that the students go home in a month and therewill be loads of empty rentals there is clearly an over supply of about a hundred inthe town


Oh and op don't buy a rental and do t but a rental on tbe hill.

caseman

RoverJames wrote: »

Don't, house prices have not bottomed out yet, looney time to buy. Especially buy to let as you don't need to do it, some folks can put a decent rationale behind buying a home but buy to let is madness at the moment.

maybe your right who knows but i intend to give a long way of the asking prices

desertcircus

caseman wrote: »

maybe your right who knows but i intend to give a long way of the asking prices

If it's buy to let, then presumably you've got a decent deposit. Stick it in a high-interest account and wait a couple of years.

caseman

desertcircus wrote: »

If it's buy to let, then presumably you've got a decent deposit. Stick it in a high-interest account and wait a couple of years.

think ill get a better return from property thats if all works out to plan any other pit falls out their any info would be great

Raskolnikov

What is the price you want to pay, and what is the (realistic) rental (per annum)?

noxqs

My reaction to someone wanting to buy an investment property right now:

https://www.youtube.com/watch?v=lrF5x1OSJuQ

Is there any reason you can't just buy world market funds ? The yield will be better. Property is terrible as an investment, and it always has been historically versus inflation.

Mr. Loverman

If you can afford having no tenants and you won't need to sell the property for at least a decade, go for it.

Otherwise steer clear.

desertcircus

For the sake of crunching numbers:

Let's assume the place costs ballpark 100k, and you have 20k deposit ready. A mortgage of 80k costs 425 a month on a 25-year term, with the first three years fixed. The achievable rent in Sligo town according to Daft appears to be about 500-550 - let's assume the higher number. Subtract two months per year for when you have no tenants, and we get a figure of 5500 a year in rent, against 5100 on mortgage repayments. In other words, you could well be taking on a 25-year mortgage for the sake of four hundred quid a year.

What happens if you put the cash in the bank? Bank of Ireland are offering a two-year account that offers 3% in the first year and 6% in the second; for simplicity's sake, let's call it 9% over the two years. That's a profit of 1800, or nine hundred quid a year. Then you consider those mortgage repayments - stick them in a savings account at 3.5%, and you're getting an extra 150-180 a year in interest on that too.

At the end of the two years? If you go with the mortgage, you may be ahead by a little bit, but you may be miles behind. It's high-risk, because if you don't find a tenant, or something goes wrong with the house, or the tenant bargains you down by fifty quid a month, you're in the red, with a house that's losing you money while losing value at the same time, you'll still be paying off interest rather than capital so there'll be virtually no equity built up, and if the government decide to reduce rent allowance the whole market will drop significantly. Add in a 10% drop in the value of the property and you're down thousands.

If you stick the money in the bank, after two years your 20k and repayments will have added up to over 32k. That's twelve thousand quid in the first two years, which will now buy you a bigger chunk of a cheaper house, with smaller repayments and less interest payable overall. And all of it is at close to zero risk. Add in a 10% drop in the value of property, and now you're borrowing less than sixty thousand in two years instead of eighty thousand now.

In a falling market, it's insane to buy something you know will depreciate in value - as property in Ireland will. Given the numbers above, you'd have to have tenants all the time, paying the higher estimated rent, and have nothing whatsoever go wrong with the house in order for it to compete seriously with sticking the money on deposit - and that's before you think about any loss of value.

sligorentals

I'm guessing it's No. 7 St Michael's Tce with an asking price of €50k?
Looks awful on the outside, although i don't know what it's like inside.
Unless you turn that house in that location into a palace with all mod cons (OFCH & double glazing as a minimum, modernise it, furnish accordingly and add white goods), you will have nothing but trouble with your investment. It is likely to lie empty for long periods of a time & attract low quality tenants. Even with those improvements, rent will not exceed €550 per month in that location. Sligo Rentals

kdowling

desertcircus wrote: »

If you stick the money in the bank, after two years your 20k and repayments will have added up to over 32k. That's twelve thousand quid in the first two years,.

i don't see where you are getting these figures.
by my calculations (and correct me if i am wrong, which is very possible!!)
20,000 @ 9%interest over two years yields €1,800 the €10,200 mortgage repayments at 3.5% would yield €357. that yields €2,157 over two years.

where are you getting €12,000?

noxqs

Where are any of you getting these yields from?

Surely, the picture is more complex. Comparing interest you can get in the bank versus equal risk world market funds (compared to an Irish house) stocks/bonds it changes everything:

- What is the average return on say Forbes Global 1000 fund versus average Irish Bank Interest rate? Looking at the numbers, its 11.3%.

- What is the TOTAL COST of the property? Include:

* Maintenance fees
* Solicitor cost
* Surveyor cost
* Purchasing proper furniture/white goods/etc.
* A paint job every 5-6 years inside, 10-15 years outside?
* Cost of interest/mortgage repayments during non-tenant periods?
* Various incidents which are bound to occur in a 30 year period.
* Insurance is not free.

- The fecking hassle of dealing with tenants?

Why anyone would want to become a landlord versus just buying some international investment funds is beyond me. It's this delusion that 'they will pay the house for me' which is a fallacy and a major risk that drives the most clueless gits to become landlords.

Say you invest 20K in a house which for simplicitys sake has tenants for the entire period and no costs (unbelivably unrealistic):

30 years:

You got a house. Valued ?

30 years with Forbes Global 500 at 11%:

457,000.

Which one will be highest? I have no doubt it is the stocks.

caseman

caseman wrote: »

new to the property game wondering anybody know about the rental market in sligo its a 2 bed in an older part of town not far from town center any advice would be much appreciated

thanks alot for all the replies .didnt do anything yet but will do something in the next few months as for bond shares im not much good at crunching numbers or %. id rather have something that i could go and look at

noxqs

Its your money.

You are determined to invest in the worst possible asset, at the worst possible time. A fool and his money..

littleredspot

caseman wrote: »

im not much good at crunching numbers or %. id rather have something that i could go and look at

If you're not good at crunching numbers or percentages, then really should you be investing in anything? Renting a property is a business and the maths must add up and you must know your figures inside out. As pointed out there's lots of costs involved. If you don't know anything about any of this you really should educate yourself. Going to look at a pile of bricks and mortar that's causing you massive hassle and costing you a fortune will bring you no solace.
All of what I've said applies no matter what way house prices are going, but add in the direction they are heading and I think the answer is obvious.

jackiebaron

kdowling wrote: »

i don't see where you are getting these figures.
by my calculations (and correct me if i am wrong, which is very possible!!)
20,000 @ 9%interest over two years yields €1,800 the €10,200 mortgage repayments at 3.5% would yield €357. that yields €2,157 over two years.

where are you getting €12,000?

He's adding the mortgage repyments to the savingsaccount aswell rather than pissing them up the wall paying off the mortgage. Read it again!

jackiebaron

caseman wrote: »

thanks alot for all the replies .didnt do anything yet but will do something in the next few months as for bond shares im not much good at crunching numbers or %. id rather have something that i could go and look at

Why not buy 200 burnt out cars at 50 quid a pop and put them in a field. You could go "look" at them every damn day.

caseman

littleredspot wrote: »

If you're not good at crunching numbers or percentages, then really should you be investing in anything? Renting a property is a business and the maths must add up and you must know your figures inside out. As pointed out there's lots of costs involved. If you don't know anything about any of this you really should educate yourself. Going to look at a pile of bricks and mortar that's causing you massive hassle and costing you a fortune will bring you no solace.
All of what I've said applies no matter what way house prices are going, but add in the direction they are heading and I think the answer is obvious.

when i said im not much good at crunching or % it was in regards to stocks and shares as reply to tread i know my figures for the house im thinking of investing in

caseman

jackiebaron wrote: »

Why not buy 200 burnt out cars at 50 quid a pop and put them in a field. You could go "look" at them every damn day.

thanks for the positive reply reason for property investment i dont trust shirts and ties the last 3 years proved this buy the way a good friend of mine made million out of scrap metal might think about that

Kimia

Write properly! It's so hard to read your posts.

The_Conductor

Kimia wrote: »

Write properly! It's so hard to read your posts.

I have to agree. A little punctuation, goes a long way.

caseman

Kimia wrote: »

Write properly! It's so hard to read your posts.

I'm sorry! I'll put a bigger effort in.