Buy to let apartment South Terrace Cork

kinsale wedding

Hi there,
I have some money set aside and I'm looking to buy an investment property.
Does anyone have any information on South Terrace court Cork city, that would be worth knowing?
Also do people think the property gains tax incentive is pushing prices up in Cork ?
I'm thinking of holding off for the new year but the apartment seems reasonably prices.
Many thanks

euroboom13

What return are you getting on this "investment" if, as you say ,is "reasonably priced.

The best return I am seeing in property after tax /expenses is about 2%, and with all the headaches of property, I wouldn`t touch for that. As for speculative value ,I think that's about squeezed already.
Good luck

kinsale wedding

Hi eurobloom, thanks for that.
Apartment cost is 100k, largely funded by cash.
Yearly rental income is €9000, so 9% yield gross.
Of course off this comes €1300 management fee.
Letting agency if we use them charges 10% so €900.
Perhaps my calculations are off but, even with using the letting agency, this would leave the yield at 6.8% before tax, much higher than a lot of investments?
Your point about the headache of property is very valid however.

alanmackers

I'm also thinking of buying a rental property and have come to roughly the same conclusion as you - the yield is pretty high, and the risk seems low.

I'm Irish but actually no longer resident that complicates things a bit so for sure I would need a letting agency. The property I'm thinking of is in Dublin, this one: allsopspace.ie/auction/lot/28464 and I believe in auction I could get it for around 90-100k, and rent it for roughly 1000e/mo.

However it's a ground floor apartment so I'm a bit worried if that would risk alot the the ability to rent it, and sell it later down the line.

Any ideas? Have you decided yourself on something?

euroboom13

At 100k you can't really go wrong if rental income is available, and if affordability goes out of the market ,the bottom end of the market lifts

Its 200k prices that don`t add up at the moment.

But even on your calculations ,if you were borrowing you would make nothing on this deal unless the market rises.(after tax you would only have about 3.5% to cover borrowings) so ,even at that price, your cash is the only element that makes that a bargain.

Nice to see a realistic proposition thou.

As for buying at auction ,if you get it at the right price and no extra risk turns up , after auction ,you might do well, but like most ,they go at a premium on the day ,killing the risk/ reward.

Good luck all.

ulinbac

I think the figures may have to be revised again. I considered this 2 years ago but stopped after reading some reports and talk to 2 family members who both own multiple properties in Dublin for the last 15+ years

They said on average that you will rent out a property for 9/10 months a year. Then you need to take into account costs eg washing machine breaking down, leaks, painting the place etc. Both have had tenants (one was 2 doctors ) steal from them and do a lot of damage to the houses/apartments.

Financially they can take it but both have said you need a nice bit of cash in reserve in case anything goes wrong.

slightly_broke

kinsale wedding wrote: »

Hi eurobloom, thanks for that.
Apartment cost is 100k, largely funded by cash.
Yearly rental income is €9000, so 9% yield gross.
Of course off this comes €1300 management fee.
Letting agency if we use them charges 10% so €900.
Perhaps my calculations are off but, even with using the letting agency, this would leave the yield at 6.8% before tax, much higher than a lot of investments?
Your point about the headache of property is very valid however.

what size is the appartment , how many bedrooms , 9000 per year is 750 per month which seems high for anywhere but a premium location in cork

you can get a yield of 4.5% right now with one of the new irish REIT,s which can be bought through a broker , no worries about tennants

the REIT im thinking of owns blue chip residential and commercial properties around dublin 2