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Now ye're talking - to a landlord

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Comments

  • Registered Users Posts: 6,587 ✭✭✭Feisar


    Given the chance would you do it all again?

    First they came for the socialists...



  • Registered Users Posts: 6,587 ✭✭✭Feisar


    If you can let me know where the massive profits are then let me know...
    Profits on Paper or virtual money tied up in equity are of no value .. they wont buy a new washing machine or pay a plumber.
    i had 400k in equity in 2007 .. this went to -400k in 2012...


    The houses are still only worth 66% of what i paid for them in 2004-2006 and they were in negative equity for 10 years

    I was also using my own money to top up the rents,pay all the taxes,house insurance etc for about 10 years,
    and i had to make sure i had enough cashflow at all times for repairs /taxes etc

    Fair play to you overall so please don't see my next question/observation.

    Do you think that the above is a reason why housing shouldn't be used as an investment tool by private individuals?

    First they came for the socialists...



  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    Feisar wrote: »
    Does the state pay for the repairs after they kick in the door?

    I never followed it up I just got a new one and sucked it up


  • Registered Users Posts: 284 ✭✭strangel00p


    Yeah but the thing is we all want to get a mortgage so we have a house for our future/pension/to live in and we can't get a mortgage. I'd really like you to say "I am really privileged, yes." That would make me happy.


    It is nobodys responsibility to make you happy, that's up to you. Why does he have to say to anyone that he is really privileged? As he said himself, when his friends were enjoying themselves in ibiza, he was busy saving. Nobody gave him his property, he worked for it and good luck to him if he is earning a few quid from it.


  • Registered Users Posts: 98 ✭✭Pints?


    Hi
    I told the back the first house was for me to live in in 2004 I bought it and rented it out straight away and 9 months later I went back to the bank and went for a second one and a year after that I went and got the third one ....after saving up for all the stamp duty and sols fees
    The bank were only too happy for my business ...
    Back then I was on about 40k a year and the bank gave me over 807k .... at 23 /25 years old ... looking back it was crazy

    To answer your question I tell people that they can do what they want with the house once they give it back to me the same colour as I gave it to them . They can have pets too no problem . I use a letting agent for one house given the grief I have had with 2 tenants in it

    How did you save the deposit for the second house in 9 months considering you would have needed roughly a 25% deposit (~80k) as it had to be BTL when you were on 40k? Did you come in to some money also?


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  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    Feisar wrote: »
    Given the chance would you do it all again?

    Yes but with a few small changes
    One of them is a 2 bed .. I should have gotten all 3 beds

    My saving grace is that I have a good job so I could fund the shortfalls and I was so young when I started on it all

    Would I do it now and start again ? No way


  • Registered Users Posts: 667 ✭✭✭Iscreamkone


    I laugh at the posters who say that our landlord friend is privileged.
    I applaud his entrepreneurial spirit and graft in keeping this enterprise afloat all these years (many didn’t).
    Best of luck for the future


  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    Pints? wrote: »
    How did you save the deposit for the second house in 9 months considering you would have needed roughly a 25% deposit (~80k) as it had to be BTL when you were on 40k? Did you come in to some money also?

    The bank didn’t want a 25 % deposit for the second one only about 8% I think
    They didn’t want any deposit for the third one . I had Ulster bank and Boi both mad for me to transfer the mortgages to them .. looking back it was madness
    To give a 23 year old nearly 1 million in borrowing ??


  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    I laugh at the posters who say that our landlord friend is privileged.
    I applaud his entrepreneurial spirit and graft in keeping this enterprise afloat all these years (many didn’t).
    Best of luck for the future

    Thanks very much for your kind words


  • Registered Users Posts: 98 ✭✭Pints?


    The bank didn’t want a 25 % deposit for the second one only about 8% I think
    They didn’t want any deposit for the third one . I had Ulster bank and Boi both mad for me to transfer the mortgages to them .. looking back it was madness
    To give a 23 year old nearly 1 million in borrowing ??

    Another 8% was still 23k saved in 9 months on ~40k. Crazy times indeed!


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  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    Pints? wrote: »
    Another 8% was still 23k saved in 9 months on ~40k. Crazy times indeed!

    Hi where do you get 23k from ?
    I don’t think I mentioned any of the purchase prices of the houses
    how long I was saving or how much I had saved up

    On the first house I got interest only for 1 year
    So the payment was very low end I was getting 1100 a month I had it rented a week after I got the keys
    This helped me also ...

    All this by the way was over 15 years ago I’m doing my best to remember


  • Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    In 2010 you had a frightening amount of negative equity, a large set of mortgages and 3 peoples homes hanging over you.

    What kept you going when many other landlords threw in the towel?

    What was that year like for you, do you remember much of it?


  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    Graham wrote: »
    In 2010 you had a frightening amount of negative equity, a large set of mortgages and 3 peoples homes hanging over you.

    What kept you going when many other landlords threw in the towel?

    What was that year like for you, do you remember much of it?

    Ha it was a right headache all right
    I was putting about 1/4 of my wages per month subbing the rent
    Interest rates were a bit higher too..
    I was in over 400 k of negitive equity too . In Ireland you can’t just hand the keys back as far as I know if you do the bank will sell them and still persue you for the balance . Bankruptcy laws were different then too
    It was hard but I was lucky that the recession didn’t really have too much of an affect on my job and I had a sideline second job that made a few quid too

    Basically I just put my head down and worked morning noon and night


  • Registered Users Posts: 698 ✭✭✭SuperRabbit


    It is nobodys responsibility to make you happy, that's up to you. Why does he have to say to anyone that he is really privileged? As he said himself, when his friends were enjoying themselves in ibiza, he was busy saving. Nobody gave him his property, he worked for it and good luck to him if he is earning a few quid from it.
    I've never been to Ibiza, this attitude of assuming all the rest of us are responsible for not being able to get mortgages, and have all been partying and having fun ( I'm not in Fianna Fail. ) and not working hard and saving, is pretty ignorant. Believe it or not you can work incredibly hard and have no fun and still not be granted a mortgage.

    Good luck to him indeed but this "poor me" thing is a bit grating. It's just increasing the divide instead of bridging it, which is what he came here for?

    Landlord dude, genuinely sorry to hear it hasn't earned you anything yet but it's a pretty great pension plan you got there, it will all come up millhouse


  • Registered Users Posts: 98 ✭✭Pints?


    Hi where do you get 23k from ?
    I don’t think I mentioned any of the purchase prices of the houses
    how long I was saving or how much I had saved up

    On the first house I got interest only for 1 year
    So the payment was very low end I was getting 1100 a month I had it rented a week after I got the keys
    This helped me also ...

    All this by the way was over 15 years ago I’m doing my best to remember

    The 23k was around the 8-10% of house prices in 2004. I also thought you said you scraped together the deposit for the first property. Apologies


  • Registered Users Posts: 1,024 ✭✭✭gar32


    Roughly in 9 years time. If you got say €35k a year without any mortgages. Tax would be almost 1/2 and you will you will have expensive etc. Maybe €16k incoming from them each year. Giving the cost of living you would still need to work. Would you consider buying more properties so this income would be high for your retirement? I am a landlord for a small apartment & I am thinking to buy a 2nd now the mortgage is paid off.


  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    I've never been to Ibiza, this attitude of assuming all the rest of us are responsible for not being able to get mortgages, and have all been partying and having fun ( I'm not in Fianna Fail. ) and not working hard and saving, is pretty ignorant. Believe it or not you can work incredibly hard and have no fun and still not be granted a mortgage.

    Good luck to him indeed but this "poor me" thing is a bit grating. It's just increasing the divide instead of bridging it, which is what he came here for?

    Landlord dude, genuinely sorry to hear it hasn't earned you anything yet but it's a pretty great pension plan you got there, it will all come up millhouse

    I didn’t come here for anything
    It was easy to get a mortgage in 2004-2006
    And you are right about Ibiza I wouldn’t go there either !!
    Also if I’m grating you don’t have to read any more of the thread


  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    gar32 wrote: »
    Roughly in 9 years time. If you got say €35k a year without any mortgages. Tax would be almost 1/2 and you will you will have expensive etc. Maybe €16k incoming from them each year. Giving the cost of living you would still need to work. Would you consider buying more properties so this income would be high for your retirement? I am a landlord for a small apartment & I am thinking to buy a 2nd now the mortgage is paid off.

    I’m not sure to be honest if I did go again I wouldn’t borrow so much I would try to have at least 50% up ,Also I doubt the bank would give me any more!!
    the rents at the moment are around 4300 if that was my only income the tax would be less


  • Registered Users Posts: 1,024 ✭✭✭gar32


    OK 51K a year would be good enough to live on. I would just like to say well done. The negative comment on here from people unable to think bigger then there job's for making money. Enjoy it when it works out for you. Which I am sure it will :)


  • Closed Accounts Posts: 43 ReneeCali


    That is true yes... I did have to save up the 8% deposit myself an then I think the stamp duty was another 15k and then 2k of solicitors bills . I wanted to get a rental house for my future/pension


    The negative spin I was referring to was about that we are all in it for the greed and making a fortune with rents not paying any tax etc..

    You are all in it for greed for goodness sake you don't seriously expect us to believe you are doing this out of the goodness of your heart.


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  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    ReneeCali wrote: »
    You are all in it for greed for goodness sake you don't seriously expect us to believe you are doing this out of the goodness of your heart.

    Humm Interesting point a business that is run to make a profit = greed ( even tho I have not made any profits at all as previously explained )

    Would you not go for a promotion in work because if they paid you more it would be greedy ?
    Pls explain what you mean by greed ?
    You are aware that I saved up for deposits for years and I have mortgages


  • Moderators, Science, Health & Environment Moderators Posts: 21,636 Mod ✭✭✭✭helimachoptor


    ReneeCali wrote: »
    You are all in it for greed for goodness sake you don't seriously expect us to believe you are doing this out of the goodness of your heart.

    I wouldnt say that, I'm an accidental landlord, bought a place and then through some different circumstances had to rent it out.
    Its rented 13 years, last year was the first time there was any cash left over after paying all the bills that come with having a rental.

    Also like the Op, mine is a HAP, so we take less than the market rate. I could get a lot more if i kicked my tenants out and got "private" ones.


  • Registered Users Posts: 667 ✭✭✭Iscreamkone


    ReneeCali wrote: »
    You are all in it for greed for goodness sake you don't seriously expect us to believe you are doing this out of the goodness of your heart.

    Its not show-friends
    It’s show-business, sir.

    If he provides housing for a number of families - Bravo.
    If he makes a profit - Bravo

    Never be embarrassed to make a profit


  • Registered Users Posts: 698 ✭✭✭SuperRabbit


    If he provides housing for a number of families

    I didn't realize he was building social housing



    No one said you should be embarrassed to make a profit. I would say you should feel privileged and grateful to have gotten a mortgage while they were giving them away like sweets


  • Company Representative Posts: 87 Verified rep I'm a Landlord, AMA


    I didn't realize he was building social housing



    No one said you should be embarrassed to make a profit. I would say you should feel privileged and grateful to have gotten a mortgage while they were giving them away like sweets

    I don’t really understand your question to be honest ?
    Are you saying did I feel privileged that I could work hard and save up untill I qualified for a mortgage ? Do you mean that I should be privileged and grateful I was healthy and was able to work ?
    If so I am grateful that I never had any medical issues ......

    Also even tho the mortgage criteria was much less back then I still had to
    Save up deposit and show p60 and all that .....
    Like I still had to qualify for it


  • Registered Users Posts: 698 ✭✭✭SuperRabbit


    I don’t really understand your question to be honest ?
    Are you saying did I feel privileged that I could work hard and save up untill I qualified for a mortgage ? Do you mean that I should be privileged and grateful I was healthy and was able to work ?
    If so I am grateful that I never had any medical issues ......

    t


    Yes yes exactly you should feel privileged and grateful for those things :)

    Also even tho the mortgage criteria was much less back then I still had to
    Save up deposit and show p60 and all that .....
    Like I still had to qualify for it

    and you should feel privileged and grateful because if you were just a bit younger you could do all that and more and still not get a mortgage


  • Registered Users Posts: 667 ✭✭✭Iscreamkone


    I didn't realize he was building social housing



    No one said you should be embarrassed to make a profit. I would say you should feel privileged and grateful to have gotten a mortgage while they were giving them away like sweets

    The landlord IS actually providing social housing- he has said that all his properties are in HAP.

    Talk of privilege is bo11ix if you ask me.
    The landlord applied successfully to the banks for a mortgage (remember the banks expected to make a handsome profit from him). He was hardly privileged when he was 400k in the red was he?

    He has kept his enterprise afloat during the worst recession in living memory and some people think he’s like an English landlord of old. His business is like any other - he provides a service that is needed, and he gets paid for it.


  • Closed Accounts Posts: 43 ReneeCali


    Humm Interesting point a business that is run to make a profit = greed ( even tho I have not made any profits at all as previously explained )

    Would you not go for a promotion in work because if they paid you more it would be greedy ?
    Pls explain what you mean by greed ?
    You are aware that I saved up for deposits for years and I have mortgages

    Ok, so answer me this...what was your occupation in 2004?


  • Registered Users Posts: 12,992 ✭✭✭✭Geuze


    If you can let me know where the massive profits are then let me know...

    Sorry, I haven't read every post, so I may have missed whether the mortgage payments were broken down into:

    interest payments
    capital repayments

    The interest figures are needed to calculate the net rental profits.

    You would have these figures yourself, from your annual tax return.


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  • Registered Users Posts: 12,992 ✭✭✭✭Geuze



    In the real world when you are dealing with your own bills and subbing the rent etc … Profit IS rent minus mortgage minus Tax bill....

    As I said before if I sold everything now I would walk away with zero after 16 years...

    I have sympathy with your unrealised capital loss.

    I suffered a realised capital loss myself, not nice.

    However, net rental profits = gross rent less mortgage interest less other allowable expenses.

    After all, you must do this calculation every year for your tax return.

    Yes, many landlords must use cash to cover costs, yes, that is a cashflow issue, yes, BUT, they are saving and building up net assets.


This discussion has been closed.
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