Becoming a landlord

wdmfapq4zs83hv

I am considering becoming a landlord. I have a small inheritance of 100k & having a brief look online looks like there are a few properties around this amount in Dublin & surrounding (Kildare Meath ) Anyone like to share in their experience the are the pros & cons? I don't have enough to clear my own mortgage so this seems to be the next best thing investment wise. Do most people use a management company to deal with tenants? What other costs would be associated with buying a property to let?

jack923

Deandre Steep Storyteller wrote: »

I am considering becoming a landlord. I have a small inheritance of 100k & having a brief look online looks like there are a few properties around this amount in Dublin & surrounding (Kildare Meath ) Anyone like to share in their experience the are the pros & cons? I don't have enough to clear my own mortgage so this seems to be the next best thing investment wise. Do most people use a management company to deal with tenants? What other costs would be associated with buying a property to let?

I'm not to sure but my advice would be to buy a place in a rough area, the prices are really cheap and people rent in them anyway mainly the foreigners and you can still charge pretty much the same price. People will rent a room pretty much anywhere these days

the_syco

Deandre Steep Storyteller wrote: »

What other costs would be associated with buying a property to let?

Having to redecorate the entire place along with new electrical goods if you get a nasty tenant who refuses to pay rent for a year, and destroys the place. Along with the money it costs to evict the tenant, or fine for illegally evicting them.

Moonbeam

I would use it towards your own mortgage ,being a landlord can be expensive and the taxes high .

Speedwell

Moonbeam wrote: »

I would use it towards your own mortgage ,being a landlord can be expensive and the taxes high .

This. Make sure the bank puts it toward principal, not interest.

audi12

Moonbeam wrote: »

I would use it towards your own mortgage ,being a landlord can be expensive and the taxes high .

A lot of the same people who are telling people not to invest in property were probably telling people in 05 to buy when prices were four times what they are now.

Not saying you were but just in general. Not a bad time to be buying I am hoping to invest this year maybe would have preferred to but two years ago but couldn't at the time.

newacc2015

You best choice is student accommodation. Look for one that is a former section tax relief development. They are unique under tenancy law, as the tenants dont have tenancy rights ie they are licensees. This is great, as you evict non-paying tenants swiftly and you can be sure that you can increase rent every year, as they will move out for the summer.

Roselm

Have a look at the "Difficult Tenant" thread...

Jen44

dont do it!! I had to rent my first house as it was in a spot of negative equity. Its a nuisance, the costs involved from loss of TRS, tax etc dont make it worth it and the random phonecalls about broken washing machines etc when you werent planning for it are a pain!

Mrs OBumble

Deandre Steep Storyteller wrote: »

I am considering becoming a landlord. I have a small inheritance of 100k & having a brief look online looks like there are a few properties around this amount in Dublin & surrounding (Kildare Meath ) .... so this seems to be the next best thing investment wise.

Properties for 100k in Dublin? Yeah, right ...


OP, unless you have very good pension savings in place, then I suggest you consult a decent financial advisor. It depends on your circumstances of course, but I'm sure there are better ways to invest 100k.

hytrogen

newacc2015 wrote:

You best choice is student accommodation. Look for one that is a former section tax relief development. They are unique under tenancy law, as the tenants dont have tenancy rights ie they are licensees. This is great, as you evict non-paying tenants swiftly and you can be sure that you can increase rent every year, as they will move out for the summer.

So why are so many of those from the 2004 era rounds being sold on now in fragments as private dwellings??..

etoughguy

I don't know your circumstances so cant comment on emergency funds, diversification etc
I would talk to an accountant first to get some details on the taxes involved

Expenses are as others mentioned: tax, tenant registration, cost of repairs, appliance breakages, evictions, non payments etc (a good landlord has money aside for all these a bad one thinks oh ffs why did that fooking washing machine break the month I have the nct, new braces for the children and a huge gas bill)
Can you make money from it - of course but depends on the persons circumstances, say mortgage gone and good tenants then its handy income.
Its not for the faint hearted but do as much research as you can. I've had no bad tenants in 10 + years, this doesn't make me a good landlord more a lucky one I would say!
Good luck Theres a website for irish landlords with forums too

hytrogen

Mrs OBumble wrote:

OP, unless you have very good pension savings in place, then I suggest you consult a decent financial advisor. It depends on your circumstances of course, but I'm sure there are better ways to invest 100k.

I went into a few last year for some free advice on a similar figure. Most aimed towards Pension funds.. truth is there's no money left in that pot these days so prepare to lose when you come to retirement.
It's all about trust and security.
I put the majority of it in my home renovations instead, like new roof windows & doors, kitchen & wash rooms. Total bill was about 65k, the house badly needed it though to be fair. The rest I found a decent savings account with a relatively modest interest rate. I'll look for savings certs & bonds & with the credit union next year when I've a little more in the kitty after I fix the boat up this summer.
Also why have the Irish this inherent fixation on bricks & mortar and road frontage still? Have we not learned hard facts that noting is secure in concrete??

Speedwell

etoughguy wrote: »

I've had no bad tenants in 10 + years, this doesn't make me a good landlord more a lucky one I would say!

Nonsense, don't sell yourself short. If you were a bad landlord, your good tenants would find somewhere else to live in short order.

MarkAnthony

OP do the maths, preferably with an FA and accountant. Once you've done that then you'll be in a better position to make a decision. You become a landlord in three scenarios:

(i) Accidentally
(ii) Becuase you like the idea of running it as a hobby business
(iii) You've inside knowledge and have done a huge amount of research into an area/areas and have managed your risk.

You clearly don't fall into (i) or (iii) so I suggest that unless you WANT to have a little customer service job on the side that can take as little as a few minutes a month or turn into a gigantic albatross of court battles for the love of God don't do it. If you do want a little hobby business then go for it, I'm in category (i) but I do take quite a bit of pleasure from running it I have to admit, and waffling on about it online obviously.

Moonbeam

audi12 wrote: »

A lot of the same people who are telling people not to invest in property were probably telling people in 05 to buy when prices were four times what they are now.

Not saying you were but just in general. Not a bad time to be buying I am hoping to invest this year maybe would have preferred to but two years ago but couldn't at the time.

I bought in 2006 but thinking ahead in an area with a high need for rental properties.
It is a great time to buy a family home but not an investment property,the taxes on it are huge.

wdmfapq4zs83hv

Mrs OBumble wrote: »

Properties for 100k in Dublin? Yeah, right ...


OP, unless you have very good pension savings in place, then I suggest you consult a decent financial advisor. It depends on your circumstances of course, but I'm sure there are better ways to invest 100k.

There are properties for 100k in Dublin. A quick browse of my home. Ie will show you.

Thanks for all the replies it's very interesting!

audi12

hytrogen wrote: »

I went into a few last year for some free advice on a similar figure. Most aimed towards Pension funds.. truth is there's no money left in that pot these days so prepare to lose when you come to retirement.
It's all about trust and security.
I put the majority of it in my home renovations instead, like new roof windows & doors, kitchen & wash rooms. Total bill was about 65k, the house badly needed it though to be fair. The rest I found a decent savings account with a relatively modest interest rate. I'll look for savings certs & bonds & with the credit union next year when I've a little more in the kitty after I fix the boat up this summer.
Also why have the Irish this inherent fixation on bricks & mortar and road frontage still? Have we not learned hard facts that noting is secure in concrete??

Best investment you could ever get is houses to suggest otherwise is lazy talk all depends on the price its bought at. The crash proved nothing only that overpriced property shouldent be bought. I will buy this year and keep buying for years to come while the value is there.

wdmfapq4zs83hv

Moonbeam wrote: »

I would use it towards your own mortgage ,being a landlord can be expensive and the taxes high .

I could but that wouldn't generate me any income

Speedwell

Deandre Steep Storyteller wrote: »

I could but that wouldn't generate me any income

Do you even know how mortgage interest works? Pay the principal down, pay less interest, more money in your pocket.

Also no house-buying and house-renovating fees to make it suitable for renting, no increased taxes on a rental income, no maintenance costs, etc....

wdmfapq4zs83hv

Speedwell wrote: »

Do you even know how mortgage interest works? Pay the principal down, pay less interest, more money in your pocket.

Also no house-buying and house-renovating fees to make it suitable for renting, no increased taxes on a rental income, no maintenance costs, etc....

No I don't really know how it works. I did contact the bank about paying off a lump off my mortgage and they said it would reduce my term. But I would still be paying the same monthly amount wouldn't I? I'm sure it would save me money in the long run but it's now I need the extra money. Or am I missing something? I'm very green about mortgages / interest etc! I think I do need a financial advisor for sure!

Speedwell

Deandre Steep Storyteller wrote: »

No I don't really know how it works. I did contact the bank about paying off a lump off my mortgage and they said it would reduce my term. But I would still be paying the same monthly amount wouldn't I? I'm sure it would save me money in the long run but it's now I need the extra money. Or am I missing something? I'm very green about mortgages / interest etc! I think I do need a financial advisor for sure!

Good job. That's what they're for. Much better than a bunch of random schmucks on the Internet

Moonbeam

Deandre Steep Storyteller wrote: »

No I don't really know how it works. I did contact the bank about paying off a lump off my mortgage and they said it would reduce my term. But I would still be paying the same monthly amount wouldn't I? I'm sure it would save me money in the long run but it's now I need the extra money. Or am I missing something? I'm very green about mortgages / interest etc! I think I do need a financial advisor for sure!

If you do pay it off your mortgage make sure they take it off the principal and tell them that is what you want. It will save multiples of what you pay off in the long run.

audi12

audi12 wrote: »

........ The crash proved nothing only that overpriced property shouldent be bought. I will buy this year and keep buying for years to come while the value is there.

Is there value there now compared to 3/4 years ago?
Why didn't you buy than, if you didn't you're late to the party imo.

newacc2015

hytrogen wrote: »

So why are so many of those from the 2004 era rounds being sold on now in fragments as private dwellings??..

Technically you can let to them to whoever you want after 10 years. But these are complexes in student developments. No one in their right mind will live in a development that is 99% students September to May and tourists for the summer.

Moonbeam

Moonbeam wrote: »

If you do pay it off your mortgage make sure they take it off the principal and tell them that is what you want. It will save multiples of what you pay off in the long run.

Second time this has been mentioned on the thread, I would have assumed any overpaying or lump sum going against a mortgage would automatically come off the principal it would make nonsense to put it against interest for the bank or the mortgage holder.

pwurple

Deandre Steep Storyteller wrote: »

No I don't really know how it works. I did contact the bank about paying off a lump off my mortgage and they said it would reduce my term. But I would still be paying the same monthly amount wouldn't I? I'm sure it would save me money in the long run but it's now I need the extra money. Or am I missing something? I'm very green about mortgages / interest etc! I think I do need a financial advisor for sure!

I would not invest in property without fully understanding how mortgages and interest works. A financial advisor will try to sell you a pension or investment fund. That is their primary goal in my experience. Not that that's a bad thing in particular, and maybe it's a better option for you, but understand that is what they will do. Not teach you about your existing loans.

On your own mortgage, You can pay a lump off the principal, and you then usually have two choices... So if you want option 2, speak to the bank again.

1) reduce the term, keeping the payments the same
OR
2) keep the term the same and reduce the monthly payments.


And i will echo everyone else... Clearing down debts is often the best place to start (unless you have a tracker on 0.5%!)

the_syco

Deandre Steep Storyteller wrote: »

I have a small inheritance of 100k & having a brief look online looks like there are a few properties around this amount in Dublin & surrounding (Kildare Meath )

Generally speaking, the price is generally cheap due to either bad area, bad neighbours, or bad state of the house.

The first will mean low rent, the second will mean continuous gaps of no rent, and the 3rd means you'll need to input more capital into it to possibly break even, or end up finding that the last owner sold it as it's a money pit.

wdmfapq4zs83hv

pwurple wrote: »

I would not invest in property without fully understanding how mortgages and interest works. A financial advisor will try to sell you a pension or investment fund. That is their primary goal in my experience. Not that that's a bad thing in particular, and maybe it's a better option for you, but understand that is what they will do. Not teach you about your existing loans.

On your own mortgage, You can pay a lump off the principal, and you then usually have two choices... So if you want option 2, speak to the bank again.

1) reduce the term, keeping the payments the same
OR
2) keep the term the same and reduce the monthly payments.


And i will echo everyone else... Clearing down debts is often the best place to start (unless you have a tracker on 0.5%!)

I actually have a tracker of .80% so fairly lucky there!

Pawwed Rig

What yield will you get on your investment?
Bear in mind as a landlord you are required to file a tax return so factor this in too.
Your personal circumstances will dictate your options.
IME I have been a landlord for coming on 10 years now and have never made a penny out of it (actually been a significant monthly cost). If I knew then what I know now I would never have gotten into it.
I can tell you some horror stories.

handlemaster

Pawwed Rig wrote: »

What yield will you get on your investment?
Bear in mind as a landlord you are required to file a tax return so factor this in too.
Your personal circumstances will dictate your options.
IME I have been a landlord for coming on 10 years now and have never made a penny out of it (actually been a significant monthly cost). If I knew then what I know now I would never have gotten into it.
I can tell you some horror stories.

I think most LL have horror stories. .. Maybe let the OP have some so reality can be viewed

hytrogen

audi12 wrote:

Best investment you could ever get is houses to suggest otherwise is lazy talk all depends on the price its bought at. The crash proved nothing only that overpriced property shouldent be bought. I will buy this year and keep buying for years to come while the value is there.

If you bought 20 - 30 years ago and are selling now yes but for the foreseeable future no way. That's just playing on the Irish inherent desires to own ones land and road frontage stemming all the way back to famine days.
What the crash proved was that we are glutinous animals with desires to be perceived as fashionably superior and successful by any means no matter what the consequences.
I'm curious to know what level of return would you be anticipating buying now and selling in 20years?

Moonbeam

Christine Warm Stepsister wrote: »

Second time this has been mentioned on the thread, I would have assumed any overpaying or lump sum going against a mortgage would automatically come off the principal it would make nonsense to put it against interest for the bank or the mortgage holder.

unfortunately not.
It is Irish banks that we are dealing with.

Pawwed Rig

handlemaster wrote: »

I think most LL have horror stories. .. Maybe let the OP have some so reality can be viewed

Being left in the lurch to the amount of €5,000 which is unrecoverable,
Spending New Years Day cleaning blood off a driveway after tenants party gets out of control,
Dealing with Gardaí after repeated complaints about anti social behaviour in the property,
Having neighbours swearing at and abusing you because your tenant is an absolute cretin and making life unbearable for anyone within the vicinity,
Being treated as a pariah by the PRTB when trying to evict a tenant that smashed up a neighbours car for having the cheek to complain about them,
Approaching the property with a concealed hammer in case I am faced with any violence during an inspection for damage,
Disinfecting a house after a cat lady moves out (which was one of the scummiest experiences of my life),
Having to drive 100 mile return trip to 'fix' the heating of someone who it turns out had run out of oil and hadn't realised it.

The above represent 3 separate tenants, none of whom were on rent allowance and all came with glowing references from previous landlords.

Ursus Horribilis

What sort of money do you need right now? Why not put aside some of this €100k that you need for now and do something else with the remainder?

the_syco

Pawwed Rig wrote: »

The above represent 3 separate tenants, none of whom were on rent allowance and all came with glowing references from previous landlords.

The fun is that glowing references come from good tenants, and really really bad tenants who also get a cash sum from the landlord to get rid of them! :mad:

4ensic15

Christine Warm Stepsister wrote: »

Second time this has been mentioned on the thread, I would have assumed any overpaying or lump sum going against a mortgage would automatically come off the principal it would make nonsense to put it against interest for the bank or the mortgage holder.

Of course it comes off the principal. The issue is how the remaining balance is repaid. Either the monthly payment is reduced and the mortgage ends as originally scheduled or the monthly payment remains the same and the mortgage ends earlier than originally scheduled.

handlemaster

handlemaster wrote: »

I think most LL have horror stories. .. Maybe let the OP have some so reality can be viewed

I'm on either 5th or 6th tenants in 10 years, first chap stayed 3 years, current tenants are in their 3rd year too.

The other 3/4 all left after a year in the period when rents were falling to I think they all moved on as they could get somewhere better/more convenient for them.

No horror stories, all done above board..... registered tenancies etc.... whatever replaced when required asap.... letting agent used ...... I've never met any of the tenants.

I hope there won't be either.

filbert the fox

Deandre Steep Storyteller wrote: »

I have a small inheritance of 100k

We shouldn't even be talking to you... we're not in your league.

This is a small inheritance? the only thing I ever inherited was my late father's watch and my mother in law's mantle clock. About £25 worth. That's small.

Miname

Had a tenant that decided the flat roof on a porch was the best spot to have a party and then collapsed it. Another who smoked 80 a day and had a fear of leaving the house. Destroyed the inside. Had a drug dealer and even had a couple who started pulling off plasterboard because there were spirits living in the walls. All came recommended but after all they are paying off for my nest egg.

Roselm

Deandre Steep Storyteller wrote: »

No I don't really know how it works. I did contact the bank about paying off a lump off my mortgage and they said it would reduce my term. But I would still be paying the same monthly amount wouldn't I? I'm sure it would save me money in the long run but it's now I need the extra money. Or am I missing something? I'm very green about mortgages / interest etc! I think I do need a financial advisor for sure!

There are mortgage repayment calculators online. You can input your mortgage balance, interest rate, current monthly payment. You then input a lumpsum amount or an increased monthly amount and it will show you how much it saves you. It's a HUGE amount-you'd be surprised.

Doodoo

Roselm wrote: »

There are mortgage repayment calculators online. You can input your mortgage balance, interest rate, current monthly payment. You then input a lumpsum amount or an increased monthly amount and it will show you how much it saves you. It's a HUGE amount-you'd be surprised.

Mentioned in this forum before. It's very handy.


https://m.drcalculator.com/mortgage/#/input

wdmfapq4zs83hv

filbert the fox wrote: »

We shouldn't even be talking to you... we're not in your league.

This is a small inheritance? the only thing I ever inherited was my late father's watch and my mother in law's mantle clock. About £25 worth. That's small.

Yes sorry it's not small to me either! I posted that after browsing my home. Ie where there were about 4 properties in my budget

handlemaster

filbert the fox wrote: »

We shouldn't even be talking to you... we're not in your league.

This is a small inheritance? the only thing I ever inherited was my late father's watch and my mother in law's mantle clock. About £25 worth. That's small.

Plus your Fathers DNA

athtrasna

Mod note : Makood, delicately veiling generalisations does not make them acceptable on this forum. Please do not post on this thread again.

Other posters are asked to report rather than (not as well as) retorting on thread. Thanks

Sound Landlord

Hi there, I have a few quid on deposit earning nothing and am looking at buying a buy to let in Leinster. Does anyone know the cheapest mortgages available for buy to let. My broker says ICS Mortgages are the cheapest at 4.29%. Has anyone found a lower rate for new lending that that? Thanks.

__..__

Sound Landlord wrote: »

Hi there, I have a few quid on deposit earning nothing and am looking at buying a buy to let in Leinster. Does anyone know the cheapest mortgages available for buy to let. My broker says ICS Mortgages are the cheapest at 4.29%. Has anyone found a lower rate for new lending that that? Thanks.

I take it youve been asleep since this time last year, or even the last two years then

Spanish Eyes

Sound Landlord wrote: »

Hi there, I have a few quid on deposit earning nothing and am looking at buying a buy to let in Leinster. Does anyone know the cheapest mortgages available for buy to let. My broker says ICS Mortgages are the cheapest at 4.29%. Has anyone found a lower rate for new lending that that? Thanks.

Buy Prize Bonds instead.

You will keep your hair and your sanity and may win a few bob too.

Sound Landlord

ha ha ha. Thanks for the advice and btw, the hair is long gone!

Hollister11

I would say go for it.

My parents have 2 rentals and make a tidy sum every year. Yea some years there are significant costs. But usually, they end up with an extra weeks wage every month.

I hope to get into BTL in the next 10 years, after first starting my career, and secondly buying a residence.

pwurple

Spanish Eyes wrote: »

Buy Prize Bonds instead.

You will keep your hair and your sanity and may win a few bob too.

Never ever buy prize bonds. Complete swizz in terms of income, reduced to almost nothing, less than a regular bank account and extremely difficult to cash in if you ever need them.