Property Investor

Ivor_Guddon

Hi All

will keep this short

i have a house with approx €180k mortgage left , but value is €400k

i'm possibly thinking of selling privatelty to an invester as i have tenants who pay the rent ( not hap ) Private ( all registered with prtb etc )

how would i go about finding investors ?

gipi

If you advertise the house "with sitting tenants", that may encourage investors rather than a private purchaser. Talk to your local estate agent, they may know of people interested in buying a rental.

Ray Palmer

https://www.boards.ie/discussion/2058415752/property-investor

Not many investors will take on an exiting rental tied to what ever the current rate is you are charging out. You would need to provide rental income rate and they will see what the return is to see if it has value to them as an investor.

Ball park figure for a for an investor would be 30k in rent and that is probably the lowest

Ivor_Guddon

https://www.boards.ie/discussion/comment/123530667#Comment_123530667

appreciate the response

Ivor_Guddon

will do

thanks

manatoo

Where is the house? I might be interested

Ivor_Guddon

https://www.boards.ie/discussion/comment/123530765#Comment_123530765

Finglas

3 bed mid terrace with attic conversion to 4th bedroom

house is 20 years old

pm for more

DubCount

OP - you are shooting yourself in the foot here.

When selling with a sitting tenant, you exclude any buy2own buyer and that may impact on the value you get. Any investor who needs to have a mortgage, will not be able to buy as the bank will insist on vacant possession at closing. If you do find a cash investor, they will be wondering what is wrong with existing tenants that you have to sell with sitting tenants.

The Irish Rental Sector does not reward the nice guy. If you want/need to sell, issue eviction notice and sell without restrictions.

Iscreamkone

By putting it on the open market you could achieve a higher price by getting owner occupiers AND investors interested. Why would you limit interested parties?

Ray Palmer

https://www.boards.ie/discussion/comment/123531217#Comment_123531217

With current rules that will not work as the RPZ would be in affect. However the new policy being touted would bring in the ability to change the rent. Banks don't insist on vacant possession for buy to lets.

OP, converted attic cannot be rented as a room unless it complies with a lot of building regulations which is rarely done. If there is no fire door there now it is not compliant and adding a fire door won't fix it but absence tells you it would be consider a storage room not a habitable room

Ivor_Guddon

im not pushed to sell

just wondering how to do it with tenant living here

i dont want to give 9 months notice and them to not pay me as they save because i cant fook them out

rather sell to somebody who would want to keep situation as is probably

my question was is there an invester site that you submit your property and details etc and see if its something they want

3DataModem

I viewed properties with a sitting tenant last year, as I was looking for an investment.

The unfortunate reality is there is usually one of two reasons a place is sold this way

1. A good long term tenant that the seller doesn't want to disrupt, and in fact is a big asset to the deal for a BTL buyer.
2. A tenant that the seller knows they'll have problems shifting.

Make sure when advertising that you show (a) last date rent set and (b) current rent.

If the current rent divided by the price you want is less than about 5.5-6%, then you'll struggle to find a good investor, especially if the tenant is there 1-2 or 7-8 years (i.e. just at the start of their 6 year cycle).

Ray Palmer

https://www.boards.ie/discussion/comment/123532509#Comment_123532509

You are basically pointing out that your tenants are not trustworthy. It is precisely that kind of reason why an investor would not be interested. You want somebody else to take the risk. I think you will find most investors are pretty savvy and will want to see rent payments and records. If these tenants have ever missed or delayed payments they will want to know, you will need good records. Are there particular reasons you suspect they will stop paying rent?

You are selling a property and making money, missed rent won't cost you that much as tax is so heavy

Ivor_Guddon

https://www.boards.ie/discussion/comment/123533268#Comment_123533268

they are 100 % trustworthy , never missed a payment

my issue is if i serve notice , it's so hard to find a place to rent now i'm wondering would they just not pay me now as i can't just throw them out as they have rights , so they might sit for the 9 months and save all that money to use to buy a place or for renting in better area with higher rents , i don't know

but then i have to bear the brunt solely on mortgage payments till house is sold ( i'm not looking for sympathy by the way ) just trying to navigate this the best way possible that's all , id prefer to sell to the tenants but doubt they'd have the funds , they have been amazing and i don't want to turn their lives upside down just because i'm done with the rental market and rather have the money in my pocket from a sale

Ray Palmer

https://www.boards.ie/discussion/comment/123534665#Comment_123534665

They can't be 100% trustworthy if you think they will stop paying rent

Ivor_Guddon

https://www.boards.ie/discussion/comment/123534707#Comment_123534707

lack of homes etc

Ray Palmer

https://www.boards.ie/discussion/comment/123534746#Comment_123534746

So only trustworthy if it suits them, so not trustworthy

Ivor_Guddon

https://www.boards.ie/discussion/comment/123534889#Comment_123534889

ive no reason to doubt them

but its me worrying if it happened

SupaCat95

Take a look at RPZ being announce for the whole country. Now is the time to get out of rentals. I pity any landlord or anyone renting privately from a landlord.

Ivor_Guddon

https://www.boards.ie/discussion/comment/123539147#Comment_123539147

i'm just gonna issue notice of termination and sell and take my €250k in the back packet and enjoy it

Ray Palmer

https://www.boards.ie/discussion/comment/123548816#Comment_123548816

Don't forget CGT

SupaCat95

https://www.boards.ie/discussion/comment/123549664#Comment_123549664

The Misery never ends in this country, does it? You remember Bumpy in American Gangster, Bumpy never took 20%. Then there is not enough fat for people to do business, its just not worth while. Investors are fleeing the Irish housing market.

Ivor_Guddon

https://www.boards.ie/discussion/comment/123549664#Comment_123549664

am i right in saying the CGT is only on profit of the house ? ie if you paid €400k but sold for €420k you only pay it on the €20k ???

Ray Palmer

https://www.boards.ie/discussion/comment/123552286#Comment_123552286

Correct.An accountant can tell you if you can write off any additional money on the property but I think there is some rules about that so might mean nothing.

Ivor_Guddon

https://www.boards.ie/discussion/comment/123550716#Comment_123550716

they bend you over backwards for every cent

like you borrow €300k to buy but probably end up paying €750-900k back over the duration of the mortgage and still want CGT , also if rent it out you have to pay again , ****

while jacinta down the road with 4 kids by 4 diff dads gets everything given to her and no incentive to work

work hard here to get shafted deeper , they don't even need a balaclava

Ray Palmer

https://www.boards.ie/discussion/comment/123552286#Comment_123552286

I think CGT is fair enough but in other countries you can reinvest the money back into another property and only pay CGT on selling the next property or reinvest only paying CGT on exiting property investment. It would allow for more property transactions.

Ivor_Guddon

https://www.boards.ie/discussion/comment/123552310#Comment_123552310

It's not fair at all tbh , if you paid your dues you should reap all profits on something you paid twice or three times the value off ( the loan i mean )

Ray Palmer

https://www.boards.ie/discussion/comment/123552397#Comment_123552397

CGT is your dues as you made a profit. CGT negatively impacts me but I understand it is a tax on making money. If you think your dues is the tax on rental income and the cost of a mortgage you are just mistaken because CGT is on the money you made after that. Many people consider the money paid out was paid by the tenant and not you and I see the point but don't agree. You however didn't pay dues you paid the cost of a mortgage and made rent money for the service you provided. The equity in the property and the increase in property value are your reward and you only pay tax on the property value increase. Seems pretty fair given you did profit much more

Ivor_Guddon

https://www.boards.ie/discussion/comment/123552486#Comment_123552486

i understand all that , point i make is they screw you on all money

take away from the working class and reward the bottom feeders

Rocket_GD

https://www.boards.ie/discussion/comment/123553143#Comment_123553143

I wouldn't say that you're working class when you own more than one property.

The real "working class" in this day and age can't afford to buy one.

Ray Palmer

https://www.boards.ie/discussion/comment/123553143#Comment_123553143

Well if everyone paid the taxes as the should many would pay less. You are getting a chunk of money tax free. I don't think "bottom feeders" are living a good life. Then you have to consider the services they do provide for the elderly, disable, sick etc… which I think you will agree are not bottom feeders. I have no kids but my taxes pay for schools and children's allowance which I have no issue with. Does that bother you?