Questions to ask when buying an apartment

grandlad

Hey guys,

When buying an apartment off of an agent, what standard questions should be asked, is there a template somewhere?

I saw an ad where they state there are tenants already in the apartment. Can I ask the agent about the tenants records (do they pay on time, how much they pay, duration of the lease, ..)?

I see the fact that there are tenants comforting as I don't have to look for new tenants.

Thanks

Baby01032012

So your buying it as an investment?
No. 1 youll need to know is tenant paying market rate...if not due to rent control your limited by amount you can increase rent  by...this will be the whole basis for your return on investment..no 2...any issues with tenant..arrears etc..
Man co. effectiveness...compliance with MUD Act., credit control, budgets, capital expenditure, block insurance, latest financials filed..
I really could go on for hours on the basic due dilligences
Are you really sure you want to buy direct property investment if your asking what you need to ask?

Claw Hammer

No bank will lend if there are tenants already in occupation. Most likely the property is also a bank sale. That will also have implications for the raising of finance.

grandlad

Baby01032012 wrote: »

So your buying it as an investment?

First and foremost it is for getting a regular income.

Baby01032012 wrote: »

Are you really sure you want to buy direct property investment if your asking what you need to ask?

No I am not sure, it seems a good option. Are there other options?

ED E

Becoming a small time landlord is the worst investment you could make.

edanto

It seems like maybe the place to start is the Investments forum and tell them that you have X to invest and you want to achieve a regular income of Y; and your appetite for risk is best described as Z. See if they suggest investing in an apartment. They may, I don't know.

It just sounds like you are thinking about buying an apartment with very little homework done, but I could be very wrong.

Taylor365

ED E wrote: »

Becoming a small time landlord is the worst investment you could make.

In other words, a good 6 years too late.

grandlad

Taylor365 wrote: »

In other words, a good 6 years too late.

too late to make a rental income??

happinessfr

Claw Hammer wrote: »

No bank will lend if there are tenants already in occupation.

Why would bank not lend money if there is tenants already in occupation? what if the tenant will leave the house in 2 months after you bought the house?

Samuel T. Cogley

happinessfr wrote: »

Why would bank not lend money if there is tenants already in occupation? what if the tenant will leave the house in 2 months after you bought the house?

Vacant occupation is usually required. If this is a Buy to Let mortgage there might be different requirements in place but that will mean you (sorry the OP) will have a c.50% deposit.

I would suggest taking that um of money, sitting down with a good Financial advisor and working out a portfolio. If you want to include property do it through a REIT. If you're doing it under the table with a PPR mortgage then you will need vacant occupation for obvious reasons.

IMHO it's a terrible time to be investing in apartments. There has just been a massive upswing in prices and that's the last bastion of the bubble bursting - again IMO.

Graham

There is still some value to be had the the BTL market particularly when you get outside of central Dublin (or any part of Dublin).

It's not uncommon for BTL mortgages to be upto 70% LTV and vacant possession is unlikely to be required. That is assuming the OP is planning to finance the purchase.

OP talk to an accountant to see what sort of monthly figures you'd be left with after tax etc.

Ask the agent whatever questions you like, they won't be long telling you if they're unhappy to answer any of them.

Samuel T. Cogley

Graham wrote: »

Ask the agent whatever questions you like, they won't be long telling you if they're unhappy to answer any of them.

Also take the answers with the dose of salt required.