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2 bed riverpoint sells at auction for
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23-09-2011 2:20pm#1
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Itsdacraic wrote: »Not a bad bit of business for the purchaser.
You'd have your money back in 10 to 12 years renting it.
Not in the slightest imo.
Renting at about €700 pm at the moment (if rent allowance is cut that will likely fall over the long term, so it is taking an optimistic view of things to say the least).
€8400 per year assuming no vacancy rate and not accounting for management charges of around €1500 per year. So €6200 per year assuming occupied 11 out of 12 months every year (Again, pretty optimistic imo!). That's gross. If you pay income tax at the high rate you will be paying over half that in tax, so maybe income of €3000 a year? That could be a net return of what, 3.5% a year - not a great yield. In this climate you would want a yield of 8-10% for sure.
Sure if you have a mortgage for the property you can claim 75% of the interest (not the full payment) off against tax. AT the moment. But we all know how things change in these days of 'austerity'...
Not to mentions costs involved in replacing / fixing appliance, renovation etc. Getting calls at all hours from over-stressed tenants.
No thanks.
But maybe I'm just not the property investment type
:o 0 -
eclectichoney wrote: »Not in the slightest imo.
Renting at about €700 pm at the moment (if rent allowance is cut that will likely fall over the long term, so it is taking an optimistic view of things to say the least).
€8400 per year assuming no vacancy rate and not accounting for management charges of around €1500 per year. So €6200 per year assuming occupied 11 out of 12 months every year (Again, pretty optimistic imo!). That's gross. If you pay income tax at the high rate you will be paying over half that in tax, so maybe income of €3000 a year? That could be a net return of what, 3.5% a year - not a great yield. In this climate you would want a yield of 8-10% for sure.
Sure if you have a mortgage for the property you can claim 75% of the interest (not the full payment) off against tax. AT the moment. But we all know how things change in these days of 'austerity'...
Not to mentions costs involved in replacing / fixing appliance, renovation etc. Getting calls at all hours from over-stressed tenants.
No thanks.
But maybe I'm just not the property investment type:o
Valid points. Its not always as easy as it appears. You really need to account for all the other costs and uncertainties.0 -
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eclectichoney wrote: »Not in the slightest imo.
Renting at about €700 pm at the moment (if rent allowance is cut that will likely fall over the long term, so it is taking an optimistic view of things to say the least).
€8400 per year assuming no vacancy rate and not accounting for management charges of around €1500 per year. So €6200 per year assuming occupied 11 out of 12 months every year (Again, pretty optimistic imo!). That's gross. If you pay income tax at the high rate you will be paying over half that in tax, so maybe income of €3000 a year? That could be a net return of what, 3.5% a year - not a great yield. In this climate you would want a yield of 8-10% for sure.
Sure if you have a mortgage for the property you can claim 75% of the interest (not the full payment) off against tax. AT the moment. But we all know how things change in these days of 'austerity'...
Not to mentions costs involved in replacing / fixing appliance, renovation etc. Getting calls at all hours from over-stressed tenants.
No thanks.
But maybe I'm just not the property investment type:o
you forgot to carry the one
but yes shes right...owing a rental property at the moment just isnt worth it for the income once taxes and chaarges are taken into account in my opinion.0 -
the drifter wrote: »you forgot to carry the one
but yes shes right...owing a rental property at the moment just isnt worth it for the income once taxes and chaarges are taken into account in my opinion.
I hope that's a joke dude, I don't see no miss-takes! :pac::pac:
Another factor that people forget about as wlel, particularly these days, is the illiquidity of it. In three year's time you could be forced to emigrate, family member gets sick etc. - could be desperate to sell the place to free up some cash, and well, I wonder how easy it will be to sell apartments in a few years. The sheer volume of them and lack of the 'unique property' / 'dream house' factor you get with houses means that there is plenty of choice of similar stock for potential buyers.0 -
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