As an investment, what do ye think??

Pinkycharm

Putting in a bid on this tomorrow I hope!! The BER Cert is pending on it but just want opinions!

http://www.myhome.ie/residential/brochure/5-bulfin-road-nenagh-tipperary/2870692

Seems like a great buy and very little work to do!

MouseTail

Not much help, as I don't know the town or local market. In theory, it sounds ok, gross yield of 7%. Looks well maintained.

The_Conductor

I'd have to echo the above- I have no familiarity with the town or area.
If there is strong rental demand, and you are certain of >90% occupancy- the 7% ROI is what I'd be going off.......

Have someone checkout the boiler- if its in poor shape it could cost you a few grand to replace.

The figures seem to add up- but we know nothing of the area.

Pinkycharm

boiler was replaced completely last year estate agent was onto BER man and asked him for me. I've a good feeling about it so set up an appointment to view it today. I'm attracted to the area just because of the proximity to Limerick and Nenagh is a fairly okay town to be in location wise. a friend has a property there and has never had it vacant for too long and even so ive nieces there that are coming of age to move out of home :P I'll sit on it for a day or two after viewing. thanks for opinions so far!! much appreciated!

The_Conductor

Pinkycharm wrote: »

proximity to Limerick

Its at least half an hour on the M7- according to AA Route Finder- its like me saying 'hey- Navan is close to Dublin.......' The commute is similar to Drogheda to Dublin........

I seriously wouldn't be selling it as 'in close proximity to Limerick'.....

Pinkycharm wrote: »

ive nieces there that are coming of age to move out of home

And you're of a mind to give them a house? Thats mighty kind of you!

In all honesty- having spent a half an hour looking up Nenagh on the internet- while I've nothing against it- I don't see how it has any inherent latent demand that would ensure the high occupancy you're suggesting. If its the only property you are letting- the paperwork and process for dealing with the PRTB etc- is time consuming- it would also only take one problematic tenant- family member or otherwise- to blow a hole in the finances of a project like this.

To make this work- you need to fully mortgage the property- so you can use the 75% allowable interest deduction to bring down your tax on the rental income (but you're still liable for full USC etc).

Its not a straightforward transaction.

Unless you are planning on accepting RA I don't think this is a great investment.

Pinkycharm

Augeo wrote: »

Unless you are planning on accepting RA I don't think this is a great investment.

Why is that?

Pinkycharm

The_Conductor wrote: »

Its at least half an hour on the M7- according to AA Route Finder- its like me saying 'hey- Navan is close to Dublin.......' The commute is similar to Drogheda to Dublin........

I seriously wouldn't be selling it as 'in close proximity to Limerick'.....



And you're of a mind to give them a house? Thats mighty kind of you!

In all honesty- having spent a half an hour looking up Nenagh on the internet- while I've nothing against it- I don't see how it has any inherent latent demand that would ensure the high occupancy you're suggesting. If its the only property you are letting- the paperwork and process for dealing with the PRTB etc- is time consuming- it would also only take one problematic tenant- family member or otherwise- to blow a hole in the finances of a project like this.

To make this work- you need to fully mortgage the property- so you can use the 75% allowable interest deduction to bring down your tax on the rental income (but you're still liable for full USC etc).

Its not a straightforward transaction.

That is true! Their mother helped me out a long time ago when I had finished up college with needing somewhere to stay and they had to sell on that property so wouldnt mind helping them out in return. I know all the stuff that has to be done, my parents have properties around the place so they filled me in. Thanks for the advice RE mortgage also!!

I know a good few people that live in Nenagh and commute to Limerick and they don't mind it, I think I would probably leave it with an estate agent for a family. Viewed it today and its in perfect condition, the people that had it really did a great job, they gave the estate agent before and after pictures to show me.

Offer of €68k gone in so will see where it goes!

MouseTail

Good luck, you hoping to get it for 70?

Pinkycharm

MouseTail wrote: »

Good luck, you hoping to get it for 70?

Thanks, I'm hoping to, the EA said they'd definitely sale agree at 73k so anywhere in that region would be grand for me. I really liked it today, it looks small in thee pictures but the rooms are actually quite big so i'm happy enough.

I've been following here for so long that I know I'd get good advice so I'm delighted with all the replies

zac8

Pinkycharm wrote: »

Viewed it today and its in perfect condition, the people that had it really did a great job, they gave the estate agent before and after pictures to show me. !

Do you know that they bought that house for 31.5k last year? You've seen the before & after pics, do they justify a 138% increase in value based on their asking price?

Besides that, I think 7% yield on a property in a small rural town represents very poor value.

The_Conductor

zac8 wrote: »

Besides that, I think 7% yield on a property in a small rural town represents very poor value.

Its not purely a commercial consideration though- with his nieces interested in it- and for the overall price- its probably fine. If he were purely an investor- and this was something he was reliant on- then, perhaps it might be a concern- but at an overall investment of 70k- its reasonable.

Personally- I couldn't justify it- I've no ties to the area- and if it were my sole investment property- the hassle of having tenants and having to deal with them- when I don't live in the vicinity- would drive me nuts.

Pinkycharm

zac8 wrote: »

Do you know that they bought that house for 31.5k last year? You've seen the before & after pics, do they justify a 138% increase in value based on their asking price?

Besides that, I think 7% yield on a property in a small rural town represents very poor value.

thats not the house. I had that written down as the first question. there is a 5 at one side of the road and a 5 at the other and its the other house that was for sale. its actually coming back on the market again. yeah they do, the house was empty, saw all the receipts today for kitchen etc. they did an incredible job to get it where it is! I'm surprised they are selling it.

I did work on my own house so i know more or less the effort gone into it.

Pinkycharm

The_Conductor wrote: »

Its not purely a commercial consideration though- with his nieces interested in it- and for the overall price- its probably fine. If he were purely an investor- and this was something he was reliant on- then, perhaps it might be a concern- but at an overall investment of 70k- its reasonable.

Personally- I couldn't justify it- I've no ties to the area- and if it were my sole investment property- the hassle of having tenants and having to deal with them- when I don't live in the vicinity- would drive me nuts.

To be honest with ye all, I was left a bit of money, i invested in other things and I'm just looking to get a little something with the last of it. I have my own house and own it outright so I didnt have any mortgage to pay off and no loans. gave some to the people I wanted to and this is just whats left and I always wanted to own a house somewhere in Tipp.

Pinkycharm

The_Conductor wrote: »

Its not purely a commercial consideration though- with his nieces interested in it- and for the overall price- its probably fine. If he were purely an investor- and this was something he was reliant on- then, perhaps it might be a concern- but at an overall investment of 70k- its reasonable.

Personally- I couldn't justify it- I've no ties to the area- and if it were my sole investment property- the hassle of having tenants and having to deal with them- when I don't live in the vicinity- would drive me nuts.

I'm a she

ibFoxer

Pinkycharm wrote: »

Putting in a bid on this tomorrow I hope!! The BER Cert is pending on it but just want opinions!

http://www.myhome.ie/residential/brochure/5-bulfin-road-nenagh-tipperary/2870692

Seems like a great buy and very little work to do!

As a stroke of luck i live in Nenagh so i can hopefully answer any questions you may have about the area

Those houses in Bulfin are quiet nice, fairly roomy given the overall size. I can't see you having too much trouble renting it out at the right monthly price, i also wouldn't be too concerned about accepting rent allowance, plenty of peole still working in the town (especially given proctor & careys).

Also, you can feel very safe about dealing with that particular EA, an absolute gent, i'm dealing with the same one and honestly wouldn't have gone anywhere else.

If you have any questions feel free to ask them here or PM me if you want.

Pinkycharm

foxerv1 wrote: »

As a stroke of luck i live in Nenagh so i can hopefully answer any questions you may have about the area

Those houses in Bulfin are quiet nice, fairly roomy given the overall size. I can't see you having too much trouble renting it out at the right monthly price, i also wouldn't be too concerned about accepting rent allowance, plenty of peole still working in the town (especially given proctor & careys).

Also, you can feel very safe about dealing with that particular EA, an absolute gent, i'm dealing with the same one and honestly wouldn't have gone anywhere else.

If you have any questions feel free to ask them here or PM me if you want.

Thanks a million for the reply!!! Yeah he is a lovely man! I was onto another one in Nenagh and he was a bit offish with me just because of my low budget! I can understand why they want to get 70k+ its still an absolute steal at that. I really like the area too just from driving around, another house has come up for sale around there too so just arranging to view that this week but I agree with what you said, Nenagh still has good prospects and everyone has to start somewhere so RA would not bother me. I still can't get over how deceiving they are from the outside, they are quite spacious inside. I was expecting a tiny house and it was quite the opposite!

So would it be a good part of the town to have a property?

ibFoxer

Pinkycharm wrote: »

Thanks a million for the reply!!! Yeah he is a lovely man! I was onto another one in Nenagh and he was a bit offish with me just because of my low budget! I can understand why they want to get 70k+ its still an absolute steal at that. I really like the area too just from driving around, another house has come up for sale around there too so just arranging to view that this week but I agree with what you said, Nenagh still has good prospects and everyone has to start somewhere so RA would not bother me. I still can't get over how deceiving they are from the outside, they are quite spacious inside. I was expecting a tiny house and it was quite the opposite!

So would it be a good part of the town to have a property?

Yeah they are huge, given how small they look from the outside

Where it is is just outside the middle of town really, almost on top of the cinema, very close to tesco, close to the CBS, close to everything really. I can't imagine any reason why it wouldn't be a desirable place to live for anyone, very suitable for a young couple i'd imagine. The biggest soccer club in the region is just down the old birr road, and it's no distance from the public pool or the hotel which has leisure facilities. Golf club just out the road too. But then you have the advantage of it being that end of town which is far enough away from the pubs etc that noise isn't really a factor. Most of the long established families live in or around that area too and they are very friendly, there's a good few properties say down to the left in Sallygrove that are rentals and there's never any issues between neighbours. (SOURCE: my partner's grandparents and uncle live literally just around the corner, as do a lot of their family friends, 3 of the surrounding properties are rented and everyone is happy out)

The reason i'm so familiar with those houses is my dad and a business partner owned 2 of them up until a few years ago.

I think i have an idea who that other EA might be, yeah, you're spot on. The area is really nice, that end of town is probable the quietest, not necessarily a bad thing though.

There's nothing really to sell you on as you won't be moving in yourself and anyone looking to rent from you would more than likely be familiar with the town.

I'd say if you get it in the region of €70k it's a steal, given how well finished off it is inside, little or nothing to do to turn key.

Also, if you would feel safer having anyone from the trade taking a look to make sure things are all okay there are any amount of good lads in the town. There's a couple of decent property management guys as well if that's something you'd be interested in.

As far as getting to Limerick goes, realistically it's less than 30 minutes on the motorway, so that, i would feel, is a pretty good selling point.

Hopefully that helps cover a few questions??

Pinkycharm

foxerv1 wrote: »

Yeah they are huge, given how small they look from the outside

Where it is is just outside the middle of town really, almost on top of the cinema, very close to tesco, close to the CBS, close to everything really. I can't imagine any reason why it wouldn't be a desirable place to live for anyone, very suitable for a young couple i'd imagine. The biggest soccer club in the region is just down the old birr road, and it's no distance from the public pool or the hotel which has leisure facilities. Golf club just out the road too. But then you have the advantage of it being that end of town which is far enough away from the pubs etc that noise isn't really a factor. Most of the long established families live in or around that area too and they are very friendly, there's a good few properties say down to the left in Sallygrove that are rentals and there's never any issues between neighbours. (SOURCE: my partner's grandparents and uncle live literally just around the corner, as do a lot of their family friends, 3 of the surrounding properties are rented and everyone is happy out)

The reason i'm so familiar with those houses is my dad and a business partner owned 2 of them up until a few years ago.

I think i have an idea who that other EA might be, yeah, you're spot on. The area is really nice, that end of town is probable the quietest, not necessarily a bad thing though.

There's nothing really to sell you on as you won't be moving in yourself and anyone looking to rent from you would more than likely be familiar with the town.

I'd say if you get it in the region of €70k it's a steal, given how well finished off it is inside, little or nothing to do to turn key.

Also, if you would feel safer having anyone from the trade taking a look to make sure things are all okay there are any amount of good lads in the town. There's a couple of decent property management guys as well if that's something you'd be interested in.

As far as getting to Limerick goes, realistically it's less than 30 minutes on the motorway, so that, i would feel, is a pretty good selling point.

Hopefully that helps cover a few questions??

I think you've definitely made my mind up on it. It really is lovely inside I rang the EA yesterday just about the BER because I wanted to wait on that before I put in an official offer and he listed off the things that they had done- the cavity walls were apparently done just 2 weeks ago so they are obviously still trying to make it as attractive as possible. I think that outside shed/utility room is a huge bonus and the attic is floored. He said it's a young couple that have it so I'm sure it is very well taken care of and they really did put a lot of work into it. I honestly think that a 30 minute commute is nothing compared to some- I commute an hour to work each way i think its still attractive for those who work in Limerick or in the other towns around it. Did he own this particular one? It is extremely central! I did look at another one in Millersbrook today and one in Johns Terrace. I'm not to sure about the Millersbrook one although it is a 5 bed, I think something cosy like this would be a lot nicer. The Johns Terrace one was boarded up and that EA has one for sale in Sallygrove that I'll be taking a look at during the week. He did say that they would sale agree at 73k definitely so might be worth giving him a call again. I'm wondering will there be much interest in it at a local level- I hate to lose out on things

ibFoxer

Pinkycharm wrote: »

I think you've definitely made my mind up on it. It really is lovely inside I rang the EA yesterday just about the BER because I wanted to wait on that before I put in an official offer and he listed off the things that they had done- the cavity walls were apparently done just 2 weeks ago so they are obviously still trying to make it as attractive as possible. I think that outside shed/utility room is a huge bonus and the attic is floored. He said it's a young couple that have it so I'm sure it is very well taken care of and they really did put a lot of work into it. I honestly think that a 30 minute commute is nothing compared to some- I commute an hour to work each way i think its still attractive for those who work in Limerick or in the other towns around it. Did he own this particular one? It is extremely central! I did look at another one in Millersbrook today and one in Johns Terrace. I'm not to sure about the Millersbrook one although it is a 5 bed, I think something cosy like this would be a lot nicer. The Johns Terrace one was boarded up and that EA has one for sale in Sallygrove that I'll be taking a look at during the week. He did say that they would sale agree at 73k definitely so might be worth giving him a call again. I'm wondering will there be much interest in it at a local level- I hate to lose out on things

I'd avoid Millersbrook, lovely looking houses but they haven't the same work gone into them, if you know what i mean. Also, not to cast aspersions but a lot of them are owned/long term leased by the council now. Johns Terrace and Sallygrove would be similiar to Bulfin, honestly i find the older houses are better, anything that went up in the 00's was thrown up in a lot of cases.

No they owned the two on the end on the opposite side of the road, lovely houses and practically identical to the one you looked at.

I will keep a local eye on it to see if there's any movement, will send you a PM with details of that

Pinkycharm

foxerv1 wrote: »

I'd avoid Millersbrook, lovely looking houses but they haven't the same work gone into them, if you know what i mean. Also, not to cast aspersions but a lot of them are owned/long term leased by the council now. Johns Terrace and Sallygrove would be similiar to Bulfin, honestly i find the older houses are better, anything that went up in the 00's was thrown up in a lot of cases.

No they owned the two on the end on the opposite side of the road, lovely houses and practically identical to the one you looked at.

I will keep a local eye on it to see if there's any movement, will send you a PM with details of that

Thanks a million for everything!

ibFoxer

Pinkycharm wrote: »

Thanks a million for everything!

Most welcome

MouseTail

Pinkycharm wrote: »

He did say that they would sale agree at 73k definitely so might be worth giving him a call again. I'm wondering will there be much interest in it at a local level- I hate to lose out on things

Don't give him a call. Don't panic, your offer of 68 is in. Wait to hear from him. If you call him you are showing your hand and bidding against yourself.