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Buy to Let Advice?

  • 04-12-2021 10:27pm
    Registered Users Posts: 55 ✭✭

    Hi all,

    I am interested in buying a house with the intention of letting it out. Has anyone here much experience of this and be willing to share their knowledge, advice and wisdom? It's a strategic move that I've been thinking of for many years now.

    I'd be really grateful for your input!! Thanks in advance.



  • Registered Users Posts: 1,162 ✭✭✭LawBoy2018

    That's quite a vague post, maybe be more specific?

  • Registered Users Posts: 552 ✭✭✭De_man

    As lawboy it’s vague, might work for pension purpose (arms length) otherwise speaking

    from experience I wouldn’t touch buy to let, if it’s only one property you’ll likely get burned badly

    be specific LTV etc

  • Registered Users Posts: 1,162 ✭✭✭LawBoy2018

    It only makes sense if you're unemployed/retired imo.

  • Registered Users Posts: 544 ✭✭✭agoodpunt

    this a wind up?

  • Registered Users Posts: 55 ✭✭lostgoat

    Hi guys,

    Thanks for the replies! Apologies if my post was vague. Made sense in my head!

    I'm 30, in gainful employment, have savings of 50K, was thinking of using this as a deposit on a house with a buy to let mortgage. Buying a house/apartment at about 200K or less. It's a long term move, I don't expect to make anything from it until it is paid for. I would use the rent to cover the mortgage, anything over the repayments would be put into a savings account for repairs, upkeep, etc. Was thinking about using a property management company, as my job is pretty time consuming. If possible save up another deposit for another house and do similar. The aim would be to have 4 or 5 house by the time I am 50 or so. Average rent at 1k each, 5k a month, before tax. Is this a far too simplistic view of it all??

    Thanks again.

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  • Registered Users Posts: 1,162 ✭✭✭LawBoy2018

    You would probably need a deposit of 60K for a 200K apartment as the lending rules are different.

  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators, Social & Fun Moderators Posts: 22,321 CMod ✭✭✭✭Pawwed Rig

    Bear in mind if your tenant stops paying rent for any reason you will need to shoulder the total mortgage. This could potentially last a number of months (I have an ex tenant who still owes me €5k that I am never going to see). Small LLs are exiting the market in their droves (as I did). I would be reluctant to go into it again unless I was buying a higher end property or renting to very specific people.

  • Registered Users Posts: 55 ✭✭lostgoat

    Yeah, that's true, from what I've been reading is the maximum ratio is 70% of total loan for buy to let mortgages.

  • Registered Users Posts: 552 ✭✭✭De_man


    i really recommend taking the advice of an independent financial advisor before you do anything.

    You have reasonable savings in the bank, you need approx 30% deposit, your post is not clear on whether you’ve got your own home or have a family, if not I suspect that its only a couple of years away and this needs to be taken into account. Buy your own home and use rent a room scheme.

    Otherwise regarding rental income, I’ve had few periods where property was vacant but lengthy periods where rent wasn’t paid

    with one property extensively damaged, sub-lets of an unpleasant kind etc to deal with.

    Take into account tax liability and the rental income is likely to put you in a higher USC bracket. Have an exit strategy if i was doing this again I’d use the property purely for pension purposes (get advice!,,)

    you’ll also have CGT following sale and then associated gift tax issues if you’re gifting

    For your mental health engage a management company and operate at arms length, do not get directly involved, and if you do use a different phone number

    this comes with responsibility in that it’s your tenants home and they need to be treated fairly, as a private investor you won’t make money, you’ll be lucky if you break even, there’ll be times it’ll cost you significant amounts. I’ve calculated the difference, equities return far exceeded the return on property

  • Registered Users Posts: 1,162 ✭✭✭LawBoy2018

    You would be better off buying a bigger house imo. How many beds would the 200K apartment be?

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  • Registered Users Posts: 552 ✭✭✭De_man

  • Registered Users Posts: 1,162 ✭✭✭LawBoy2018