Buying a one-bed apartment to rent out.

Hollister11

My cousin is looking to buy a one bedroom apartment in the Baldoyle/CLongriffin/Donaghmeade area to rent out. The price of the property is €130K. He has 50K saved, so he will need a Mortgage to cover the other 80K.
He reckons he can get 1k a month rent. The property is in quite good shape, it only needs maybe a bit of paint and freshening up.

I no nothing about property so i'm just wondering does this sound like a good idea or is he mad to buy a one bed. I think he should look for a two bed but as i say i Don't know to much about property, but i don't want to seem him struggle with it in 5 years time.

Thanks,:)

filbert the fox

WATCH OUT :mad:

Renting requires you to comply with the law.
The property must be up to standard,
you must register with PRTB,
pay property tax,
HOPE for good tenants who pay their rent,
Insure & maintain the place,
give your contact number for emergencies inclucing when you're on your holidays AND
Pay a punitive 52% tax on the rent. (less a few bits and pieces which include interest on loans, maintenance, management fees etc.)

If I'd €50,000 i'd go to New Zealand for three months and have a good hard think.....

doolox

1 bed apartments may no even go up in price that much in 10-15 yrs and you have to pay capital gains on any rise in price.

Taxed at 52% for high earners which I assume the man is to have a spare 50k lying around.

The government have made it difficult for people to go into property investment and wonder why there is a shortage of rentals out there.

MrWalsh

Dont forget management fees of around 1k per year.

Itll be a noose around his neck when he wants to buy somewhere to settle in himself at some point.

filbert the fox

doolox wrote: »

1 bed apartments may no even go up in price that much in 10-15 yrs and you have to pay capital gains on any rise in price.

Taxed at 52% for high earners which I assume the man is to have a spare 50k lying around.

The government have made it difficult for people to go into property investment and wonder why there is a shortage of rentals out there.

On that point we should not forget the Grossly Unfair Rent-a-room Scheme which allows homeowners who probably got mortgage interest relief over the years, got first time buyers grant, got preferential interest rates, etc.....a potential income of up to €12,000 TAX FREE. I grit may teeth every time I think about it :eek:

athtrasna

filbert the fox wrote: »

On that point we should not forget the Grossly Unfair Rent-a-room Scheme which allows homeowners who probably got mortgage interest relief over the years, got first time buyers grant, got preferential interest rates, etc.....a potential income of up to €12,000 TAX FREE. I grit may teeth every time I think about it :eek:

That scheme is picking up a lot of the slack in the market. Without that there would be a horrendous crisis

filbert the fox

athtrasna wrote: »

That scheme is picking up a lot of the slack in the market. Without that there would be a horrendous crisis

it will continue to precipitate a crisis if landlords continue to be unfairly treated in the market like this. I don't think there's a level playing field and the Minister should take account of this by giving back to the private rented sector some relief.

lima

Hollister, your friend should go for it. However they may be better with a two bed since they could move into it and rent the other room out to pay most of their mortgage for them. They should really do the math first (which is simple to do) to figure out whether it is worth it

Don't mind the negativity amongst landlords on here, they have either been burned themselves or are weary of competition from younger people!

Go for it :-)

Dublin13

I lived in Clongriffin for 9 years, and owned a 2 bed apt there. We ended up about 3 years ago renting it out as we had a child and needed space. Anyhow long story short, 1 bed in our block are currently renting for 950 to max of 1k per month, a 2 bed is around 1200 per month - pending size. Selling however in Clongriffin apt wise we've also done and just a note for your brother. If he buys as apt in Clongriffin he can come into difficulty in the purchase or the future sale. Long story short, we sold our apt - however the buyer had to change banks and re apply for a mortgage through a different bank as the bank he was with refused to give him the morgtage unless we proved we didn't have Pyrite. Now while Clongriffin was affected by Pyrite it was only the houses, and all were fixed and all have certs. However the apt's were never affected and never needed certs. The bank did not care - they knew Clongriffin had been affected and no letter even from gannon would change their mind. We were lucky our buyer had a good holding and was able to apply to a new bank. We got a letter again from Gannon and this was suffice for them. it was a struggle for us selling and a struggle for the buyer buying, but he pushed and we pushed and we got there. Potentially if he buys he may have the same issue pending what bank he goes to.

The rental is quick and easy in clongriffin, its local to everything and the bus route is excellent and the dart also. Would recommend Clongriffin over alot of area's around to buy for that alone.

Nic68

Dublin13, on what basis do you know that the apartment blocks in Clongriffin are not affected? Didn't I read on these boards that some months back tenants were moved out of one block temporarily while remedial works were undertaken? (Or perhaps I'm mistaken and it was houses only.) I have been looking at buying an apartment in Clongriffin, but the builder/vendor will not provide firm assurance that pyrite is not present. No checks have been done.

Incidentally, as a former long-term resident, do you (or anyone else) know if the Clongriffin Residents' Association still exists? I heard they were pretty active but the website no longer functions...

Dublin13

Hi Nic68 - The only way someone in Clongriffin in an apt would have had to move out was if they had a ground floor one bed with a duplex on top. As they were built on the same foundations as houses. There are only a handful of these in Clongriffin and they are not in an apt block. See attached link to one of them.

http://www.myhome.ie/rentals/brochure/grange-lodge-court-clongriffin-dublin-13/1569186

you will see what i mean by that link, those apt's are 1 bed all have their own door, and all are located below a duplex house. Therefore these were built on different foundation as to what an apt block is built on.

You say you have been trying to buy an apt in Clongriffin however the builders will not provide firm assurance that Pyrite is not present. Thing is, if you went directly to Gannon and told them which block you were considering buying, they would let you know what quorry was used to provide the landfill for the apt's. This alone will prove that the property isnt affected. The block I lived in and owned for 9 years, showed no signs of pyrite, no movement, no cracks nothing.

The residents association I really don't know being honest. I was involved in one of the blocks committees when I first moved in but it fell apart. In the last few years of living in Clongriffin I didn't hear anything about the committee and if they still existed. There is a clongriffin Community projects email that I can give you and I know a few of the people on there would know a bit more clongriffincommunityprojects@gmail.com

Also Vanessa Carey from DCC has a big involvement in Clongriffin also - she might be a good point of contact: vanessa.carey@dublincity.ie

If you wish to find out about any individual block in Clongriffin your best bet is to ring the below. He was very good when I Contacted him in relation to the issue we had in selling and i'm sure he would be equally easy to deal with in any questions you have in relation to Pyrite.

Pyrite has been cleared from Clongriffin for a number of years now, and apt's are included in this as said, due to using a different quorry and landfill. Any other questions, fire ahead, happy to answer.

Jim Kenny
Gannon Homes Ltd
68 Main Street
Clongriffin
Dublin 13
086 8038107
01 8285947

Nic68

Thanks SO much for your quick and informative reply. Really really useful and feeling a bit more relaxed about buying there. Shall definitely make use of your contact info.

I was asking about the residents' assoc as the community aspect is so important, especially as the area has a somewhat neglected feel - unsurprising given the half-finished nature of the estate, empty shop fronts and the vandalism of the 'state of the art' Dart station. Otherwise, Clongriffin's proximity to Dublin and also to the country and coast would suggest it has much going for it.

Cheers.

Dublin13

oh honestly, I can tell you now, there is a big community in Clongriffin. I lived there for 9 years and had my son there. It hurt to move but we had to upsize and we couldnt afford Clongriffin. It was as simple as that. You say vacant shop fronts, but there is a centra, a barbers, a chinese, an off licence, a italian restaurant (which i still go back to with my friends every month), a chipper and a Creche and pitstop car shop all in the estate, it might have a lot of vacant shop fronts but it does also have everything you need on the door step.
Re: the dart station, I am not sure you can look at any station along the dart line and avoid seeing vandalism. its everywhere, the only issue in clongriffin is broken glass inside the station. Which does be replaced, just not as often as it should.
The estate is currently having its greenery cleaned up and there is a janitor in the estate. The issues with apt's is that when i lived there the common area was only cleaned once a month. it can become quiet grubby especially the ground floor level which has most of the foot fall.
There is alot more renters now in Clongriffin that when I bought back 9 years ago, i'd say the estate would have a figure of about 65% rented and 35% owner occupied. There is a large Polish Community in the estate.
Do you have kids? If so, the local creche is amazing and I would highly recommend, but there is a year or so waiting list. Local schools are very easily accessed also. Donaghmede shopping centre is 10 min walk away, and the no. 15 bus is ideal to get into the city centre if you didn't want to dart it.
I can promise there isn't a neglected feel amongst the people that live there. And our son still goes to creche there so we still have the connection. When that goes, i'll actually miss the place being honest. Its a young community which is nice.

Fantasy_Suicide

Not sure if this helps but I own a 1bed in Ashtown, D15 which I will be renting out in the coming months. The rent there is a lot more (I'm looking to net 1150 a month) and the area is really nice.

Nic68

Thanks Dublin13. Yeah I'd checked out a few people enjoying glass of vino and plate of pasta in the Italian! And offie is always handy
And you're right about nearly all Dart stations. It's a shame how anyone feels the need to wreck things for the sake of it. We're the ones who end up paying one way or another.

uli84

1 bed in ashtown for 1150? Omg, so glad i don't have to rent anymore. We were in 3 bed there recently paying 1200 and my friend is in 2 bed with 1000€ rent (but her landlord is nice enough not to rise it more I suppose)

quadrifoglio verde

If I was in the market for a rental property the only thing id be looking at is a one bed. They've got the highest of yields. Generally the greater the amount of rooms the lower the yield .

Fantasy_Suicide

uli84 wrote: »

1 bed in ashtown for 1150? Omg, so glad i don't have to rent anymore. We were in 3 bed there recently paying 1200 and my friend is in 2 bed with 1000€ rent (but her landlord is nice enough not to rise it more I suppose)

It sounds crazy on paper, but I'm paying that myself in management fees and mortgage as an owner. Plus it's professionally designed (I'm an interior designer) and has a huge balcony over looking the canal that gets the sun all day and evening long.

uli84

That's nice, think thats where i used to live and loved it, im sure you'll have no trouble finding a good tenant