IPAS Contracts

gaming_needs90

I was looking into the maths of being a landlord etc just out of boredom and the area of the IPAS contracts came into my head. From my research it seems the average amount is 76 euro per person per night.

Unless my maths are really basic and wrong, this looks like a really easy way to earn amazing returns.

Take this beautiful property for example, Knocktopher Abbey:

https://www.daft.ie/for-sale/detached-house-knocktopher-abbey-knocktopher-co-kilkenny/5894869

Presuming one had the money for this or access to credit, by my calculation you would only have to do the IPAS contract for 2-3 years to pay it off.

It's down as 22 bed so lets presume you can get two per room, 44 people. 44 people * 76 euro * 365 = 1,220,560 euro per annum.

Presume we pay 2 million for the property. That is 2 - 3 years to pay off this property.

Am I missing something here? It seems like an absolutely amazing investment strategy.

Mrs OBumble

How much do you think it would cost to provide food (ie cooked meals, not just ingredients) for your guests, and security + insurance for your property?

walshtipp

https://www.boards.ie/discussion/2058406699/ipas-contracts

You are right, hence why so many hotels etc. are getting in to IPAS contracts.

gaming_needs90

https://www.boards.ie/discussion/comment/123370399#Comment_123370399

Does the landlord have to do this? I thought they basically handed the property over to the IPAS who run it themselves.