PropQueries wrote: You're right. The fact that the investors who purchased their investment properties between 2012 and 2014 can now sell then without incurring CGT
Villa05 wrote: » Could the drop be linked to the Accidental landlord moving into positive equity
Villa05 wrote: » If you purchased 2012/14 prices and have 2020 rents, where will you get the returns you are currently getting on the property. Would cgt exemption offset the massive returns you are achieving now Could the drop be linked to the Accidental landlord moving into positive equity
Graham wrote: » I reckon it's a combination of factors. Imbalance of power between tenants/landlords Accidental landlords out of negative equity Landlords cashing out to avail of CGT exemptions All of which is likely to be exacerbated by some of the landlords who haven't received rent for months yet can't even begin an to get their property back. I don't think the rental market is going to be looking pretty in the second half of this year.
schmittel wrote: » I suspect it s a combination of all of the above - cgt, accidental LLs moving into positive equity, but most of all I'd say it is a case of the risks currently outweigh the rewards. Unless you've large amounts of cash burning a hole in your bank account I think you'd be mad to be a BTL landlord now.
Hubertj wrote: » When you say risk do you mean current restrictions around evictions due to COVID, tenants not paying rent etc? From what I have read laws and regs seemed to be changing a lot pre COVID with rent pressure zones and changes to legislation every year. This must be difficult to manage on an annual basis.... and a pain in the boll*x
PropQueries wrote: » Thanks for that. It's just a few posters were stating that the yield accepted by these large funds was much lower than the yield acceptable to the small BTL landlord. Made sense given the amount of money flowing their way. But, apparently the funds are achieving near enough the same yield as the small BTL landlord which means there's no incentive for either to be leaving the market at the moment unless they believe both rents and property values will collapse in the near future. Ires Reit's Gross Yield in 2020 was 5.7%. Link here: https://investorrelations.iresreit.ie/sites/ires-ir/files/reports-presentation/presentations/interim-results-2020.pdf
Graham wrote: » I think the appeal of a physical asset in BTLs is part of the attraction for some. That and leverage. You can't get a mortgage to buy shares in a REIT.
Mad_maxx wrote: » its barely moved in three years where as property is way up
Mad_maxx wrote: » thats true , perhaps the fact that IRES has been so poor at tracking the real property market is another reason ? its barely moved in three years where as property is way up
Mad_maxx wrote: » IRES current yield is 4.1 % , how come more money isnt buying this ? am i missing something , that seems like an excellent return considering the diversification , never mind not having to worry about rogue tenants or all the BS that goes with managing property is it a case of REIT,s being relatively new to this country that people dont know enough about them ?
Mad_maxx wrote: IRES current yield is 4.1 % , how come more money isnt buying this ?
Villa05 wrote: » Is that a good return though, these reits started when property prices were much lower. Alot of their portfolios were purchased at knockdown/ fires ale prices. Is the growth/high returns phase over?
Graham wrote: » steady and reliable dividends rather than capital appreciation. You're buying cashflow.
Timing belt wrote: » The other thing is that the shares are not that liquid
Mad_maxx wrote: » Horribly so
Timing belt wrote: » was just looking at the order book for today 9 orders open. 2 Bid's of 1.32 and 7 ask price ranging from 1.45-1.80 :eek::eek: The buyers and sellers are no where near each other.
Mad_maxx wrote: » which REIT is that ? Ires ranged between 1.39 and 1.43 today
Timing belt wrote: » https://live.euronext.com/en/product/equities/IE00BJ34P519-XMSM
Mad_maxx wrote: » the dividend is of course excellent but could it be argued that a REIT is not really a proper way to track the overall market , thats fine but they are sort of marketed as being a way for anyone to invest in BTL ?
Mad_maxx wrote: » im confused reading that , i always just went by the range and that still reads 1.39 - 1.43 unless yahoo finance is incorrect ?
Timing belt wrote: » what they are showing are the open orders that have not been filled at the end of the day. There was only 3 main trades during the day and all need a broker from the looks of it. 115k shares @ 12:20 1.42 and 10k x 2 09:23 1.429
Graham wrote: » Can't say I've ever thought of REITs as anything other than buying future cashflow. Only really suitable if you've got cash and you're looking for a steady longterm return.
Mad_maxx wrote: » Thought all trades always need a broker?
[Deleted User] wrote: » This thread has nothing to do with property any more does it?
![Photo of [Deleted User]](https://w3.vanillicon.com/v2/3a3609e6a68e8a272b18bdf3830ffd68.svg)
