Why is the cost of property, esp renting, so high in Dublin?

Donald Trump

Dav010 wrote: »

Consumer law and tenancy law are two very different laws, tenancies are covered by the RTA, consumer laws by the Sale of Goods and Services Act. Consumer law does not apply to tenancies.

That's right. Well done.

But the RTA doesn't regulate how an investor might raise their capital or how they structure their investments. Nor does it state a minimum expected return.

So it's still irrelevant to anything that I was talking about when you tried to interject with it

Donald Trump

Dav010 wrote: »

Maybe he/she is a Michael Douglas fan. Greed is good.The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. ... Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.

And who are the people saying that they require that any house they buy should have the mortgage interest and capital fully paid for by the tenant so that they can have a nice free house at the end of it? :pac:

Dav010

Donald Trump wrote: »

And who are the people saying that they require that any house they buy should have the mortgage interest and capital fully paid for by the tenant so that they can have a nice free house at the end of it? :pac:

I would the answer to that is everyone who invests in property for rent wants rent to cover mortgage/finance.

Donald Trump

Dav010 wrote: »

I would the answer to that is everyone who invests in property for rent wants rent to cover mortgage/finance.

Well you are wrong. The 1-tenant amateurs who want someone else to pay for a free house for them will require that. Do you think that if you put 300k into a REIT that they just hand over the keys to a house at the end of it?

Given that you say you have been in the business for 30 years then it is a pity for yourself that you never got beyond the hobby stage. Because you might have actually had a proper living out of it and made a few quid.

As explained plenty of times, covering finance costs does not entail paying down the capital, unless your asset is depreciating. I think that might be where your mental block is

Dav010

Donald Trump wrote: »

Well you are wrong. The 1-tenant amateurs who want someone else to pay for a free house for them will require that. Do you think that if you put 300k into a REIT that they just hand over the keys to a house at the end of it?

Given that you say you have been in the business for 30 years then it is a pity for yourself that you never got beyond the hobby stage. Because you might have actually had a proper living out of it and made a few quid.

As explained plenty of times, covering finance costs does not entail paying down the capital, unless your asset is depreciating. I think that might be where your mental block is

How do you know I haven’t? My job might be my hobby for all you know.

Tenants are not paying for a free house for the owner, they are paying to rent a property. What the LL does with that is their business. Using the rent to pay off the capital borrowed is a sound business plan. At the end of the term, hopefully you have an asset paid for without having to use your own money, that is an ideal, professional minded approach.

Donald Trump

Donald Trump wrote: »

Well you are wrong. The 1-tenant amateurs who want someone else to pay for a free house for them will require that. Do you think that if you put 300k into a REIT that they just hand over the keys to a house at the end of it?

Given that you say you have been in the business for 30 years then it is a pity for yourself that you never got beyond the hobby stage. Because you might have actually had a proper living out of it and made a few quid.

As explained plenty of times, covering finance costs does not entail paying down the capital, unless your asset is depreciating. I think that might be where your mental block is

If you can’t cover the capital costs in your business you simply cannot run the business.

If I buy a pub and I can’t even pay the full mortgage repayment how can I pay myself a salary never mind wages etc??

It’s no different in a rental business. If you have another job you might be able to top things up but no one should enter a business that’s costing them money from their day job. But if your only job is your rental business you need to be able to earn enough to cover all your costs including full mortgage repayment and pay yourself a wage and pay your taxes.

You are so clueless it’s hard to tell if you are even being serious.

Donald Trump

Dav010 wrote: »

How do you know I haven’t? My job might be my hobby for all you know.

I don't know. It's an anonymous message board.

All I know is that you appeared to be getting your knickers in a twist and taking it personally as an insult when I said that it would be better to have more professional people managing multiple properties rather than a hodge-podge of 1-tenant part-timers.

However, I do know that the person running it as a business will look at both capital appreciation and income over the life of the investment. The 1-tenants only really seem to be concerned with getting their single balloon payment of 100% of the value of the property at the end. And you appeared to espouse the same sentiment. Which pointed in that direction.

Donald Trump

Lilith Steep Broom wrote: »

If you can’t cover the capital costs in your business you simply cannot run the business.

If I buy a pub and I can’t even pay the full mortgage repayment how can I pay myself a salary never mind wages etc??

Jesus Christ. Try to wrap your head around the difference between the cost of capital, and paying back the capital.


If you buy a pub, pay 1m, pay all your wages and expenses for 5 years, draw yourself 100k a year out of it, then at the end of it find that you sell the pub and exactly pay down the outstanding loan (maybe the loan is still 1m and the pub hasn't increased in value) then congratulations, you have run a successful business!

The Student

For the love of God can a mod close this thread.

Gumbo

Ok. This is going around in circles.

Between the snide comments, dude remarks which appear to be targeted and borderline inflammatory and the fact that the discussion has descended into one person and their opinion V the rest of the forum, I see no point continuing.

If another mod wishes to over rule me, that’s no problem but I feel the next natural step for this thread is attacked and reports.

Mod.