Potential Investment

DonnaDarko09

If you had about €350k to invest in property and wanted a return of about 4.5-5%, where would you suggest?

davo10

DonnaDarko09 wrote: »

If you had about €350k to invest in property and wanted a return of about 4.5-5%, where would you suggest?

Dear God, do not invest in rental property. Buy a new build that you can flip a few months later for a tidy profit.

DonnaDarko09

Thanks but suppose I wanted a hassle free, reasonably steady return for longer term..

NIMAN

DonnaDarko09 wrote: »

Thanks but suppose I wanted a hassle free, reasonably steady return for longer term..

.....and you want to become a landlord?

DonnaDarko09

Haha good point. I am asking for a friend who is looking to top up their pension. I do believe a 4.5% return is realistic. Whether that's hassle free or not is another issue I guess...

davo10

DonnaDarko09 wrote: »

Haha good point. I am asking for a friend who is looking to top up their pension. I do believe a 4.5% return is realistic. Whether that's hassle free or not is another issue I guess...

It really is a bad time to be a landlord. Rental restrictions mean rental is capped in the areas yield should be at its most appealing, tenancy rights favour the least appealing tenants and it's a nightmare dislodging them. Your friend should look at other opportunities. Landlords are looking at Airbnb or fleeing the market.

jamesthepeach

Look at everything the government has done to landlords in the last few years and are continuing to do.
Then ask yourself do you see it getting any better or worse.
Pure madness becoming a landlord now.

Maybe invest abroad, but Ireland is the worst place in Europe now to be a landlord.
Basically the government are taking control of your property but leaving you with 100% of the risk, while also making those risks far greater for you too.

whatnext

DonnaDarko09 wrote: »

Thanks but suppose I wanted a hassle free, reasonably steady return for longer term..

Well pension contributions into bonds will give you an 80% return depending on your tax status / situation. Can't think of anything more hassle free

Obviously you won't get to put the 350k all in at once.

VW 1

S&P 500 has had a 9.8% average return since inception in 1928 maybe try there.

Don't become a landlord.

The_Conductor

Donnadarko99- I concur with the others- the regulatory regime, never mind the tax regime, has turned so far in a tenant's favour, and against landlords- that you'd really need to think long and hard about a proposition such as you are suggesting..............

You say its for a friend who has a 350k lumpsum to invest- and wants something hasslefree/stressfree.
Honestly- participating in the residential property market is anything but hassle and stressfree.

If your friend has a lumpsum to spend- and put its into property- the largest possible cost they could potentially offset against rental income- namely interest on debt- doesn't exist. If they are not a PAYE employee- which you've implied they are not- they could have a potential tax rate of up to 54.5% *note- this assumes no allowable costs- which obviously won't be the case- but it does highlight that your options for sheltering income is severely limited.

Regulatory regime- the proposal is you will have to notify the RTB of an intention to issue tenancy non-renewal or eviction notices on tenants- and will only be allowed to proceed after the RTB have contacted the tenant and clarified to them what their options are. A hearing and/or adjudication panel is normally called within 12 weeks- however, this is only the start of the process for evicting a tenant who stops paying their rent- the entire process- after you finally exhaust the RTB process and go to court- can still, according to the RTB themselves, take up to 2 years (and you may be handed back a completely thrashed property at the end of the road).

Honestly- I can't see how or why someone would willingly want to enter the residential property market as a landlord in the current environment- it might be a little different for a pre-existing landlord, deciding whether to stay in the sector and map out what their options are- but for someone not currently in the sector- you *need* to do proper research and be fully aware of the prospective pitfalls- at the moment you appear to have very rose tinted glasses on...........

Wesser

People should be investing in funds and pensions and stocks and shares. Not in houses. Houses are for living in not for making money out of. That is why we had such a massive boom and bust people being greedy and trying to make money out of houses. The government are right to take messures to try to divert people out if trying to make money out if houses. Make your money elsewhere.

Feckofff

Buy a huge house, split it in two with a connecting door.
Tenant are then licencee and you can earn up to 14k/pa tax free. Which is 4% on 350k
Please note there will be many changes to the law in this area so no guarantee.
Also it does not impact future capital gains.

Other than that, run away!

jackboy

Wesser wrote: »

People should be investing in funds and pensions and stocks and shares. Not in houses. Houses are for living in not for making money out of. That is why we had such a massive boom and bust people being greedy and trying to make money out of houses. The government are right to take messures to try to divert people out if trying to make money out if houses. Make your money elsewhere.

Most funds and pensions are invested in property.