Considering buying a house to let and then moving abroad.

Soundguy.

Hello there,

I'm considering buying a house for cash in South Dublin to let, I'd be a first-time buyer, I have no experience in investing so the only option I feel that is open to me is to buy a house to secour my savings.

I'm looking on advice to buy to let, I'm concerned with finding the right tenants the management and Maintenance of a house and the taxation on a house and the insurance ect.

I'm also moving abroad so if I bought a house to let this will be my only form of income...has anybody had a similar experience or do people feel this is a bad idea to buy to let and then move abroad?

Any advice or opinions would be greatly appreciated

Thanks in advance.

patsfan1286

Might as well spend it all on lottery tickets.

the_syco

Soundguy. wrote: »

I'm looking on advice to buy to let, I'm concerned with finding the right tenants the management and Maintenance of a house and the taxation on a house and the insurance ect.

They'll put Social Welfare people into it (as the government is offering €500 or so to house SW people), and you'll never get them out. The management won't care.

Tiddlypeeps

You say that if you do this then the rent will be your only income. What happens if a tenant stops paying rent? I believe this forum tends to overstate how common over holding tenants are, but even still you have to factor that in as a potential outcome when making this decision. If you are not in a position to survive for a year or more without this income then I would say it's not a good idea.

If you are in a position to tolerate the loss of income then it's not a bad investment option. You get a little return in the form of rent and the asset itself likely appreciates in value over time. Just make sure you run the numbers properly to have a good idea of what you'll actually be earning from the rent, might be good to talk to an accountant who is knowledgeable in this area to get a feel for it. I image it's very easy to under estimate how much maintaining the property will actually cost, plus tax and time the property will potentially be vacant between tenancies etc.

the_syco

Soundguy. wrote: »

I'm also moving abroad so if I bought a house to let this will be my only form of income...has anybody had a similar experience or do people feel this is a bad idea to buy to let and then move abroad?

You may want to check if this form of income will be taxed as foreign income in the country that you'll be staying at?

overkill602

You should read this its similar but tax implications slightly different
https://www.boards.ie/vbulletin/showthread.php?t=2057950784

Soundguy.

patsfan1286 wrote: »

Might as well spend it all on lottery tickets.

Your funny !

Soundguy.

the_syco wrote: »

They'll put Social Welfare people into it (as the government is offering €500 or so to house SW people), and you'll never get them out. The management won't care.

Not everybody is on social welfare.

notharrypotter

Soundguy. wrote: »

Not everybody is on social welfare.

Yes, but you are not allowed to discriminate.
Try and get caught they will have you Infront of the WRC so fast it will make your head spin.

circular flexing

If you have enough cash to buy a house in South Dublin then you should really be getting advice from a professional as to what to do with that money. Investing it all in a property to be rented out would be crazy and with that amount you could build a very diverse investment portfolio that could generate decent returns.

April 73

circular flexing wrote: »

If you have enough cash to buy a house in South Dublin then you should really be getting advice from a professional as to what to do with that money. Investing it all in a property to be rented out would be crazy and with that amount you could build a very diverse investment portfolio that could generate decent returns.

Totally agree.

Soundguy.

Soundguy. wrote: »

I have no experience in investing so the only option I feel that is open to me is to buy a house to secour my savings.

.

Or, you know, get qualified advice on investing.

the_syco

the_syco wrote: »

You may want to check if this form of income will be taxed as foreign income in the country that you'll be staying at?

It will be taxed in Ireland anyway, your tenants are obliged to withhold a proportion of rent for your taxes here, unless you appoint an agent...
So you could end up in a double taxation mess.

the_syco

Soundguy. wrote: »

the_syco wrote: »

They'll put Social Welfare people into it (as the government is offering €500 or so to house SW people), and you'll never get them out. The management won't care.

Not everybody is on social welfare.

https://www.irishtimes.com/news/ireland/irish-news/homeless-executive-defends-500-placement-fees-to-estate-agents-1.3682769

The Dublin Region Homeless Executive (DRHE) has defended its decision to offer “placement fees” of €500 to private letting agents in return for them securing tenancies for homeless families.

Putting someone on HAP into the house nets the EA an instant €500, and should the tenant stop paying, the EA can just wipe it's hands of the mess, and walk away.

worded

Capital appreciation on a house is tempting as an investment but like anything else it can go up or down

Instruct EA not to let to RAS / unemployed. They don’t have to advertise that but surely the OP has a final say on who rents? The OP can demand references and employer references etc

Can a family or friend look after the letting?
Also If each room is let out separately and not the whole house or apartment to one person or couple this could give the OP more options if one tenant is acting up.

It’s a gamble though if living abroad but worth considering.

A mate of mine owns and rents a property in UK
And lives in Ireland. Landlords living in another country isn’t unknown ...

cruizer101

You'd be far better off posting here in the Investments and Markets forum for advice on what to do with your money.
Or as other have said given the amount, pay for some professional advice.
A lot of people look to investing in property as it is something they are familiar with but it generally isn't the best option.
Even if you really think property is the best place to invest, look at putting your money onto a property investment fund so you are mot managing the property at all.