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Buy to Let in Ireland... good idea? thoughts?

  • 27-11-2022 2:12am
    Registered Users Posts: 2,436 ✭✭✭dartboardio

    I've been pondering over the idea of purchasing an investment property and looking for any advice/thoughts.

    I am self employed with an annual income of approx/estimate 60-70k per annum depending. No kids, and I currently live abroad so I suppose I'd need to have some sort of property management or agent dealing with it when I am not in Ireland

    I would be looking to get a mortgage, and just pay the 10/20% + fees to get started.

    Idea would be something like this:

    Property cost 130,000 euros

    Mortgage payment minimum 800 euros per month

    Rent income up to or more than 1500 euros per month

    My plan would be to then rent that out to a family or by the room, but ideally to long term tenants/families at around 1500 euros per month based on similar 2/3 bed properties I have seen on the market in the area.

    Anyone done buy-to-let or would have some tips for a first timer. Anything to avoid, or look out for.



  • Registered Users Posts: 691 ✭✭✭jodaw

    Rent income subject to income tax when not in Ireland.

    No economies of scale

    Terrible macro economic outlook

    Market setup for institutions

    Small to medium landlords exiting

    Overstaying tenants

    Keep your 60k income and live a stress free life. Why try and bring a tone of stress for 5k extra net of tax and expenses.

    Terrible idea.

  • Registered Users Posts: 3,133 ✭✭✭StevenToast

    Do not do this.

    "Don't piss down my back and tell me it's raining." - Fletcher

  • Registered Users Posts: 205 ✭✭RurtBeynolds

    Lot of risk for not much reward.

  • Registered Users Posts: 1,616 ✭✭✭Ideo

    There are plenty of posts on here with people asking this question op. I’d suggest you search and find those and the response people have put up. Have you done any research on how you’d be taxed on your rental income? You’d be a non resident landlord, there are implications here. Will a bank in ireland even lend to you if you are outside the state? Buy to let deposits are minimum 30% deposit as I understand, and the interest rates are a good bit higher than owner occupier - have you looked into this? You will probably have to travel back to Ireland to sign loan agreements if you do end up buying - are you you close to ireland that you can come back? A solicitor might post the docs to you but not guaranteed. Are you confident that you’d find a property for 130k and it be good enough condition to immediately rent it out? Have you considered house insurance, life assurance, LPT etc in your numbers? Can you pay the mortgage on the property out on your own income for periods that you are not renting? If a tenant decides to not pay you and you have to register a case with the prtb it might be 2 years before you get the tenant out - can you afford to pay the mortgage plus other expenses for this length of time out of your own income?

  • Registered Users Posts: 13,505 ✭✭✭✭Mad_maxx

    I wouldn’t and I was a private landlord until a few months ago with good tenants, the sector is utterly politicised so you have very little control over you’re asset

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  • Posts: 2,078 ✭✭✭ Julien Magnificent Kiwi

    With the opposition parties protesting yesterday for rent and eviction freezes you'd be mad. And interest rates are only going one way. But some shares with a good dividend instead, or look abroad where laws favour good landlords and tenants, not bad landlords and tenants as they do in Ireland.

  • Registered Users Posts: 2,436 ✭✭✭dartboardio

    Thanks for all the advice!

  • Registered Users Posts: 113 ✭✭AnF Chuckie egg

    First things first, €130k will not buy a property that you can rent out for €1500 per month.

    Choose your tenants VERY carefully, avoid the work from homers, artist types, travellers, single mothers, young families or just families in general.

    If you are dead set on doing this then I'd be looking at an apartment in a busy town, A two bed apartment you can easily find single working people to take them. I doubt you'd get a look at an apartment in Dublin-Cork-Galway for that money, maybe €160k+ for a half decent one which will yield about €1200/month. Nice money but you have to factor in at least €4,000 for management fees, property tax, landlords Insurance and a vacancy rate. Tax is Tax idk any part of the world bar some outback down under where you can rent out property and avoid tax. Obviously you will not qualify for the room to let scheme here (few people do) but maybe you would be subject to the tax rate in whatever country you reside in as long s there's a double taxation agreement with Ireland, so UK, USA and EU for a start.

    Inward migration into Ireland at 70,000 this year, Schools full to the doors of young people, no hope of any Government getting on top of the housing crisis for at least the next 10 years, recession in parts of the world yes, but other parts of the world will see strong growth like in Ireland.

    imho with the rent rates you can get in some towns and cities, property is better value now than a few years back even if the price has risen.

    Post edited by AnF Chuckie egg on

  • Registered Users Posts: 1,677 ✭✭✭ballyharpat

  • Registered Users Posts: 12,756 ✭✭✭✭elperello

    Another option.

    You could buy an apartment in a tourist area in Spain and let it out to holiday makers through an agent.

    You would also have use of it for your own holidays.

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