Would a 1 bedroom apartment for 89k in Waterford be a good Investment?

Minime2.5

Considering a 1 bedroom apartment in the city centre to live in initially but eventually rent out. The cost of it is 89k and the rental income would be 700 per month. It will be due for review again at the end of the year?

punisher5112

Honestly no....

Edgware

Minime2.5 wrote: »

Considering a 1 bedroom apartment in the city centre to live in initially but eventually rent out. The cost of it is 89k and the rental income would be 700 per month. It will be due for review again at the end of the year?

If it is a good quality apartment with a properly run management company its as good a place to put the money as any. Rental plans are down the line and you have to live somewhere

Minime2.5

punisher5112 wrote: »

Honestly no....

There is no point in saying yes or no unless you elaborate . This is a discussion forum after all

punisher5112

Minime2.5 wrote: »

There is no point in saying yes or no unless you elaborate . This is a discussion forum after all

This is the worst time ever to plan on putting money into a rental property.....

If you can do without payments for at least a year then yes you could do it but if not then don't even consider it.

Are you prepared for damage, court case or rtb etc.

Most of the rental income will be tax such as around 50%

You will have management fees which tend to increase too.

If your a person that gets into it and has a few units and ran like a business which it is but the issue is many can't see it as a business and it many cases are attached to the property or interior items and so on....

Maintenance, fittings and appliance upkeep or replacement etc.....

With the virus and the now not knowing what's going to happen and close to nearly 1million on special payments due to the virus and job loses.

mytime

Where abouts in Waterford is it?

lomb

These actually we're very cheap in the crash. 30k was the clearing price of a apartment in Waterford. I know someone who bought 4 of them.

Minime2.5

mytime wrote: »

Where abouts in Waterford is it?

the old infirmary

Minime2.5

Would buying a 2 or 3 bedroom house and renting on a per room basis be a better idea?

guyfawkes5

The numbers you quote (without factoring the costs of furnishing, etc) suggest a ~9.5% yield which is very good for a rental property. Although you would have to really think about whether that stated rent will stay at the same level in the future.

guyfawkes5

Minime2.5 wrote: »

Would buying a 2 or 3 bedroom house and renting on a per room basis be a better idea?

You should read up on the tax implications of doing so, as I believe there is a quite hard ceiling there once you get above a certain amount in rent a month.

Edgware

He says "eventually rent out" which would indicate that he doesnt need the rental income. Either a cash buyer or can cover the mortgage anyway.
What is the lifestyle background? More info would help give better advice.
Is he commuting into Waterford?
What are the monthly travel costs?
Is he paying rent elsewhere?
Would he be sharing with a partner?

JustAThought

Buy yourself a 3 bed house - don’t waste your deposit on a one bed bedsit. You may find it hard to get that together again. Your mortgage will be your asset and you will always have security and somewhere to live and not be reliant on some social welfare recipient complying with their requirements to pay your mortgage. A one bed apartment is always a loser to rent and try to sell and your management fees will be at least a 13th mortgage payment, you will pay 50% of the rent in tax, possibly have to pay all the interiors and whitegoods/furnishings AND their annual upkeep - cost in another 5k lost - not to mention that half Ireland will be moving back in with their mammies soon as they will have no jobs.Thats before you meet the self entitled who think you own them a free ride or trying to evict someone who gets rent allowance but drinks it and won’t pay the rent but sits there in it for 2 years while you pay the mortgage and try and deal with the PTRB and the legal side.

Unless you are set up in a home of your own and have a guaranteed income and have 100k risk I really wouldn’t do it OP. You can earn 14k a year foc renting a room in your house - a far better gamble and easier and less costly risk.

guyfawkes5

Edgware wrote: »

He says "eventually rent out" which would indicate that he doesnt need the rental income. Either a cash buyer or can cover the mortgage anyway.

Fair, although using yields is a relatively impartial way of judging if a property is a good deal or not even if you don't intend to follow through on it right now.

It looks very well run, with resident caretaker. I would be inclined to go for it if you can afford it. Seems to be a quality development. Maybe try and negotiate price down a bit, if possible, if a quick sake is in order. They might be glad to get the sale in this critical time.

http://theoldinfirmary.com/

Graham

guyfawkes5 wrote: »

You should read up on the tax implications of doing so, as I believe there is a quite hard ceiling there once you get above a certain amount in rent a month.

The rent a room relief ceiling is €0 if the landlord doesn't live there.

guyfawkes5

Graham wrote: »

The rent a room relief ceiling is €0 if the landlord doesn't live there.

Correct. That post was in response to the OP suggesting he might buy a three bed house and rent out the other rooms.

pinkyeye

Deleted User wrote: »

It looks very well run, with resident caretaker. I would be inclined to go for it if you can afford it. Seems to be a quality development. Maybe try and negotiate price down a bit, if possible, if a quick sake is in order. They might be glad to get the sale in this critical time.

http://theoldinfirmary.com/

No photos of the inside of the apartments?

dartboardio

I would definitely choose the 2/3 bedroom house option, do it up nicely and rent it out per room.

Have a friend who bought a lovely house down by the Quays/Gracedieu area, moved to australia but rents the room out per room (long term) and it pays the mortgage, so handy enough.

Minime2.5

pinkyeye wrote: »

No photos of the inside of the apartments?

https://touch.daft.ie/for-sale/apartment-7-the-orchard-johns-hill/1462328

pinkyeye

Minime2.5 wrote: »

https://touch.daft.ie/for-sale/apartment-7-the-orchard-johns-hill/1462328

Thanks Minime, I'd definitely buy it for 89k if there's a seating area outside but it would be for myself to live in because my family are grown and gone.

I wouldn't buy anything as an investment property right at this moment, world too uncertain at the moment. I reckon rents are going to drop.

Also, imagine you owned that at the moment and the tenants had suddenly both lost their jobs? You'd be getting no rent coming in at all and would all over the front page of the newspapers if you tried evicting them.

Steer55

JustAThought wrote: »

You can earn 14k a year foc renting a room in your house - a far better gamble and easier and less costly risk.

Who in heavens name would pay €14,000 a year to rent one room in a house, should that be €4000?

Creamy Goodness

Steer55 wrote: »

Who in heavens name would pay €14,000 a year to rent one room in a house, should that be €4000?

Houses can have more than one bedroom.

punisher5112

Steer55 wrote: »

Who in heavens name would pay €14,000 a year to rent one room in a house, should that be €4000?

In Dublin, some would be paying more quite possibly....

Obviously things will change with the outbreak but some are smart and getting mortgage paid and then charge extra for internet, electricity and so on....

Alkers

Steer55 wrote: »

Who in heavens name would pay €14,000 a year to rent one room in a house, should that be €4000?

It's per house, so you can rent two rooms and claim the relief once it doesn't exceed 14k pa

JustAThought

Alkers wrote: »

It's per house, so you can rent two rooms and claim the relief once it doesn't exceed 14k pa

its marginally over 14k now but that includes the income from the bills unless things have changed since I last looked it up. In Dublin or course this threshold would mean that it is not tax efficient for an owner occupier of a 3 or 4 bed house to rent out more than one room under this scheme. Go figure that where half the planet is coming to Dublin to work for the multinationals demanding fluent native language skills in All kinds of odd languages that the housing tax regime is utterly inflexible and punishes those who might otherwise rent a second available room out.

JustAThought

Graham wrote: »

The rent a room relief ceiling is €0 if the landlord doesn't live there.

And it’s 50% tax due on the rental income otherwise - regardless if your tenant pays it to you or not - PTRB agreed contract - revenue will be looking for it upfront - and if you don’t pay it you wint be getting a certificate of tax compliance for your business, SME or grant application - and win’t be able to file properly without penalties or tender for public / govt contracts.

Few or little consequences for the tenant of course who dosn’t pay. It’s about time the new government gets tough on this and starts to take from source the rentals due or outstanding - far too much pandering going on.

Stopitwillya

The infirmary is a nice spot, resident caretaker, always nice and clean. Close to the city centre and pubs (less than 5 minute walk) and 2 mins to the people's park. Be worse places to live and would have no bother renting it out.

However you may be better advised to wait and see if covid 19 leads to prices dropping, which looks likely.