Investment property under 125k ... Where?

carolmon

just wondering if you had approx 100-125k to invest in a short term letting property where would you recommend buying?

I'm hearing that Carrick on Shannon has a bit of a buzz about it at the moment, lots of visitors and possibility for maximising short term lets.

Any other areas that might be similar?

Colonel Claptrap

If you're looking for exposure to Property as an asset class, then why not invest in a REIT or REIT ETF?

Is there any particular reason why you want to buy a property outright?
Small-time Landlords are rushing to get out the door.

You couldn't pay me to be a landlord in the current environment.

carolmon

Colonel Claptrap wrote: »

If you're looking for exposure to Property as an asset class, then why not invest in a REIT or REIT ETF?

Is there any particular reason why you want to buy a property outright?
Small-time Landlords are rushing to get out the door.

You couldn't pay me to be a landlord in the current environment.

I'm looking for something that I could possibly pass on to my son as a starter home and maybe use myself for some time away.

I don't want to go down the route of long term lets as I'm aware of just how much of a disadvantage a landlord is at nowadays, but I thought with short term lets the clients are licensees and it's somewhat easier to manage if any problems arise?

I'd welcome any information on how to invest in a REIT or REIT ETF (I'm not even sure what they are)

pilly

carolmon wrote: »

I'm looking for something that I could possibly pass on to my son as a starter home and maybe use myself for some time away.

I don't want to go down the route of long term lets as I'm aware of just how much of a disadvantage a landlord is at nowadays, but I thought with short term lets the clients are licensees and it's somewhat easier to manage if any problems arise?

I'd welcome any information on how to invest in a REIT or REIT ETF (I'm not even sure what they are)

It sounds like a good idea carolmon but if you buy a cheap house somewhere touristy will your son want to live there?

Spanish Eyes

Put the money in State Savings ten year bond and a few grand in Prize Bonds. I know the returns are not as good as they were, but it's safer and hassle free. Then son can buy his own house with the money later.

As others have said, I would not buy to let (even short term lets) if someone paid me to do it. Far too much hassle IMV for such a small return really.

Anyway, if you decided to do short term lets and you don't live nearby you would have to arrange an agent, and cleaning, linen change, checking all that stuff. Not for me anyway.

Claw Hammer

Carrick on Shannon is a kip. There are a few hen parties and stag nights keeping the streets full but it is not a desirable town to live in. Property values are unlikely to rise signifcantly there. No family would want a house in Carrick on Shannon as a starter home. House can be got in Athlone for that price where there is a rental market, a third level college, some industry and some prospect of further development.

carolmon

pilly wrote: »

It sounds like a good idea carolmon but if you buy a cheap house somewhere touristy will your son want to live there?

true.........maybe not.......lots to think about

wordofwarning

carolmon wrote: »

I'm looking for something that I could possibly pass on to my son as a starter home and maybe use myself for some time away.

So you are not looking for an investment. You want to make a consumption decision but see it as an investment. You are not making this decision on cashflow, but it would be nice to have a holiday place.

carolmon wrote: »

I don't want to go down the route of long term lets as I'm aware of just how much of a disadvantage a landlord is at nowadays, but I thought with short term lets the clients are licensees and it's somewhat easier to manage if any problems arise?

Short term lets are easier and harder. If you want to evict a troublesome person, you need to go through the courts which can be expensive and troublesome. So it is not as sweet and easy as people make it out to be

carolmon wrote: »

I'd welcome any information on how to invest in a REIT or REIT ETF (I'm not even sure what they are)

You really need to go to a fixed fee advisor you will advise you on your options. He will make a decision that works for you. A broker will sell you what benefits him and not you ie he might make more commission off a bad product

Moonbeam

Balbriggan, Co Dublin.
There is a huge rental market and houses prices are quite low

pilly

Moonbeam wrote:

Balbriggan, Co Dublin. There is a huge rental market and houses prices are quite low

Not 125k surely?

audi5

carolmon wrote: »

I'm looking for something that I could possibly pass on to my son as a starter home and maybe use myself for some time away.

I don't want to go down the route of long term lets as I'm aware of just how much of a disadvantage a landlord is at nowadays, but I thought with short term lets the clients are licensees and it's somewhat easier to manage if any problems arise?

I'd welcome any information on how to invest in a REIT or REIT ETF (I'm not even sure what they are)

There are only three REITs based in Ireland, two primarily hold/develop commercial property, and only one is residential IRES. There are no Irish REITS ETFs. IRES is currently trading at roughly 15% above NAV so hardly a bargain (NAV is somewhat undervalued as their cap rate is higher than some recent transactions). I hold it for some time now but recently reduced my position. May look into it again if price dips closer to NAV.

carolmon

audi5 wrote: »

There are only three REITs based in Ireland, two primarily hold/develop commercial property, and only one is residential IRES. There are no Irish REITS ETFs. IRES is currently trading at roughly 15% above NAV so hardly a bargain (NAV is somewhat undervalued as their cap rate is higher than some recent transactions). I hold it for some time now but recently reduced my position. May look into it again if price dips closer to NAV.

thanks for the response but tbh that it like reading Chinese to me... I need to do a lot of research

speak_easy

REITs are too new in this country to know yet how good they are

1. the dividend yield is terrible considering its a specific sector , you would get as high a yield in a broad based fund

2. so far , none of the REIT,s have properly tracked the market , had someone bought a REIT three years ago instead of an actual house or apt , they would be at least 20% behind with the REIT

3. there is a lot of unknowns when it comes to corporate governance in this area , hard to know how much management are keeping for themselves instead of returning to shareholders

OP , limerick city is the cheapest market in the country relative to population and whats available , it is a proper city with everything modern consumers need and want , the same size as galway but 40% cheaper , you can buy plenty of apartments in limerick for the sum you wish to spend and thee odd small town house , limerick took forever to get off the floor and while its up quite a bit this past two years , it is still very cheap

jamesthepeach

REITs are a sh1t return.
If you've maxed out your pension and are already in equities and want to diversify into property and for the reasons you outlined op, my preference would be buying in a sun resort. Not Ireland. Too volatile in Ireland. You never know what brainwave is coming next from the govt.

Mickiemcfist

jamesthepeach wrote: »

REITs are a sh1t return.
If you've maxed out your pension and are already in equities and want to diversify into property and for the reasons you outlined op, my preference would be buying in a sun resort. Not Ireland. Too volatile in Ireland. You never know what brainwave is coming next from the govt.

Yes, sun resorts famously kept their values during the recession........*

*They didn't

jamesthepeach

Mickiemcfist wrote: »

Yes, sun resorts famously kept their values during the recession........*

*They didn't

We aren't in a recession last time I looked.
And neither are the sun resorts that the op would be investing in. Due diligence required obviously .

wordofwarning

speak_easy wrote: »

1. the dividend yield is terrible considering its a specific sector , you would get as high a yield in a broad based fund

Most REITs have just started to pay a yield. So their dividend is a not a good reflection of their business. A lot of the return in REITs has been from an appreciation in their share price rather than a dividend.

99% of investors buying Irish REITs were not buying for the yield, but the capital appreciation

speak_easy wrote: »

2. so far , none of the REIT,s have properly tracked the market , had someone bought a REIT three years ago instead of an actual house or apt , they would be at least 20% behind with the REIT

Do you have a source for that bold statement?

If you brought IRES at the start of 2015, it would have been about €1 a share. It is now around €1.35-1.40 a share. Are you saying house prices in Ireland are at least 60% higher than at the start of 2015?

What you are saying does not appear to be supported by the CSO price index or by the share price of IRES. Hibernia REIT has appreciated by about 40% since January 2015 too. House prices have not in anyway appreciated by 60% since January 2015

speak_easy wrote: »

3. there is a lot of unknowns when it comes to corporate governance in this area , hard to know how much management are keeping for themselves instead of returning to shareholders

These are PLCs. There are very little 'unknowns'. Anyone with basic understanding of finance and accounting can go through the public accounts of these companies to see remuneration, etc etc. Can ask what are the unique unknowns relating to REITs that you don't see as an issue in other PLCs?

jamesthepeach

wordofwarning wrote: »

Most REITs have just started to pay a yield. So their dividend is a not a good reflection of their business. A lot of the return in REITs has been from an appreciation in their share price rather than a dividend.

99% of investors buying Irish REITs were not buying for the yield, but the capital appreciation



Do you have a source for that bold statement?

If you brought IRES at the start of 2015, it would have been about €1 a share. It is now around €1.35-1.40 a share. Are you saying house prices in Ireland are at least 60% higher than at the start of 2015?

What you are saying does not appear to be supported by the CSO price index or by the share price of IRES. Hibernia REIT has appreciated by about 40% since January 2015 too. House prices have not in anyway appreciated by 60% since January 2015



These are PLCs. There are very little 'unknowns'. Anyone with basic understanding of finance and accounting can go through the public accounts of these companies to see remuneration, etc etc. Can ask what are the unique unknowns relating to REITs that you don't see as an issue in other PLCs?

So what return are you getting on REITs then?

Mickiemcfist

jamesthepeach wrote: »

We aren't in a recession last time I looked.
And neither are the sun resorts that the op would be investing in. Due diligence required obviously .

Long term investments require due diligence on the long term risks, in the event of a crash holiday homes are the first things people sell. I.e. they're more volatile than Irish domestic property.

jamesthepeach

Mickiemcfist wrote: »

Long term investments require due diligence on the long term risks, in the event of a crash holiday homes are the first things people sell. I.e. they're more volatile than Irish domestic property.

The op wants somewhere they can basically get breaks for themselves out of and some income.
Iiquidated some of my Irish property investments and bought a place abroad mainly for personal use, but it has to pay for itself.
During this time I have come to believe that there is a better return for less risk on property abroad than property in ireland., When you buy it in the right place of course.

I think it would be right up the ops alley, assuming their pension is maxed out and they are already exposed to equities. Otherwise I would go that direction first.

jamesthepeach

cold_and_wet wrote: »

property in resorts is indeed much more risky

1. its discretionary spending , you dont need to go on a holiday but you need somewhere to live

2.government interference , a government penalising foreign owner property is not politically a risk , the locals wont care that much

Well to be fair, not only is their a risk of govt interference in Ireland, but it is reality.

I've still left some in Ireland but if that gets interfered with then I'm out the rest of the way too.

jamesthepeach

The most important thing is to be diversified.
Any one asset class can tumble by itself. A mix of many is safer.
If you can make out your pension thats a great return.

El Weirdo

How about these student apartments in Sligo?

http://www.daft.ie/sligo/apartments-for-sale/sligo/apt-34-clarion-village-ballytivnan-sligo-sligo-1453512/

http://www.daft.ie/sligo/apartments-for-sale/sligo/48-yeats-village-sligo-sligo-1508944/

http://www.daft.ie/sligo/apartments-for-sale/sligo/32-clarion-village-ballytivnan-sligo-sligo-1498338/

http://www.daft.ie/sligo/apartments-for-sale/sligo/52-clarion-village-ballytivnan-sligo-sligo-1483392/

http://www.daft.ie/sligo/houses-for-sale/sligo/18-yeats-village-ballinode-sligo-sligo-sligo-1527108/

They're managed so you don't have to worry about dealing with the tenents and the rent from the complexes is pooled so even if your particular property is empty, you get a return.

I'd imagine that there's also plenty of properties in other similar complexes in other towns.

ELM327

I've been looking at diversifying into property for some time now.
I had at one stage a shared investment but that was only as a silent partner.

There's a lot of potential in the irish market atm due to the mass exodus.
I intend in the next 12 months to build up my portfolio centred largely on high yield student apartmets like the ones above. Leveraged credit is always there, it's how you use it that counts!

When everyone else is leaving, that's the time to get in!

pilly

OP has gone running for the hills this has gotten so technical!

carolmon

pilly wrote: »

OP has gone running for the hills this has gotten so technical!

no I'm still here and reading all the input, just have to admit I'm out of my depth when it comes to financial lingo

The student properties look interesting I'll look into it further.

I def don't want to own abroad, I've been down that road and it was a nightmare trying to manage things from Ireland.