Purchasing a Buy to Let

100% save for your own house. If you are happy to continue with family, it might also be best to wait until we see the results of the present crisis and the knock on effect to the economy and if that feeds into a correction in property values.

Also, I have seen too many cases where someone becomes a landlord, focused entirely on their own circumstances, forgetting completely that the person their are letting to, its their home. Your property, but their home.

If I was you, I would go and sound out landlords, face to face. There's enough evidence out there that will make you form your own opinion. Good luck.

To answer this specific question - simply no.

In other parts of the world, you can grow a property portfolio in this kind of way, but not in Ireland. Thats because the deposit levels for Buy2Let property are high (30%+), and interest-only buy2let mortgages are not available (long term) here. Banks here are no keen on additional borrowing from equity gained from price rises either. Also, banks will be cautious about your overall indebtedness, so multiple buy2let mortgages will be difficult to obtain even if you have relevant property assets to cover the debt.

Others here have already pointed out that residential property letting is a difficult way to make money. Rogue tenants, ever-changing legislation, high interest rates on buy2let mortgages.... there are lots of reasons this is a bad idea. Read back previous threads on here and you'll soon get the picture.

If I were you, I'd look to buy a house for yourself to live in yourself. You could even use the rent a room scheme to generate up to 14k tax free. No RTB and licensee rights are nowhere near tenant rights. Plus, no capital gains tax if you sell up in a few years time as you have Principal Private Residence exemption.

Your first post started with suggesting speaking to a financial advisor. Just do that - you'll never regret it.

Always take worst case figures in to account, i say worst case - they are more an average. Worst case is your asset is worthless after being burnt out and you are financially ruined, but i digress. I have never owned a property, but have researched and researched over 10 years. God i wish i had the capital that i have now in 2014!

You do not want to throw all your capital at one illiquid asset that caries aggravated risk within this country. You can easily be ruined by something you cannot control or exit from.

You want to put in as little cash as possible, and rate the return based on what you put in (mortgage principle + cash flow..... cash flow is a funny one in this country!)

Right.

750pm rent. Mortgage of 390pm? If you're thinking of a mortgage of 100,000, it would actually be around 500. BTL mortgages are x2-x3 higher interest rate. So 33% down is 50k.

Also, add in 10k for buying costs.

750 x 10 = 7500 rental income per annum avg

Expenses avg 5500 per annum for first 20 years (This include 100% mortgage interest, eventual big repairs, etc.)

Pre tax profit - 2000

After tax gross profit: 1000

After mortgage principle net profit: -500 (Increases by about 100 every year til 2051)

So on 60k invested, your return is about 1000 per annum, or 1.6%

MAX Net profit per annum with no mortgage: 3500

As above poster suggest, consider an owner occupier, more expensive, more bedrooms. 3 students would net at least 10k per annum net. 90k in and your already at 11% return.

I bought a Btl in Dublin 4 /grand canal in 2017 and contrary to others it worked great. Loan was a business loan from Germany at 1.7% interest (40% ltv). Rented as corporate let initially and now on a long term lease to a professional (uk redbrick uni background). Yield is 6% and Managed to pay off 2/5 of the loan plus the place probably gained in value. Tenant will likely stay another 5years and then I’m outright owner.

property prices are broadly increasing with M3 money supply. So given the current central bank policy will only go up. Don’t buy any bonds or similar. Yields are hugely negative.

https://tradingeconomics.com/euro-area/money-supply-m3

The only advice I have is:

1.rather pay a bit more for a good area where you are guaranteed to get professional tenants. Check linkedIn etc once you have their name. If the work in an accounting/ law/ college job in a science/professional subject they are unlikely to not be able to pay any court imposed fines/repayments.

2.massive preference for international/European tenant over Irish person. Sounds harsh but reality is Irish people have a massive entitlement sponger attitude. Even those in white collar jobs. Much rather rent to an Indian IT guy.

There's also a reason why 80 small landlords a week are selling their property.

Its not because its a gravy train!

Despite what the Shinbots say.

^This.

Don't do it unless you're leasing to a corporation, or better still, also living in the place.

My brother has rented the same house for 25 years, he always has it as his home address and he keeps the box room for himself. Rarely had trouble, but once in a while someone shows up living there who is just trouble. He gives them a couple of weeks notice and that's it. Only way to do it IMO.

I've been a landlord since 2012, started with one, now have 5.

When I asked questions on here, I was given the same negative experiences, reasons why property is not a safe investment , tenants not paying rent etc.

So, here's the negatives I've experienced-I had a tenant that was supposed to stay for 5 years, she moved out after 18 months, and I had not checked on the property, after the first 6 months, as I said, after 5 years, I'll just renovate. She didn't 'damage' anything, but left it so filthy, I had to sugar soap the walls and remove stickers from paint, meaning I had to fill the paint 'holes'. I had to repaint everything as well. I was working full time as well, so it was a bit of stress.

I had 2 tenants in the pandemic that tried to take advantage of the 'moratorium' on mortgage for landlords and decided that since I did not have to pay a mortgage, they did not have to pay rent. It took 2 months to get the paperwork together to give them their eviction notices, upon receiving them, they paid all rent and arrears and I issued each a rent increase as much as was legal. They've paid every week since.

I had a 'lease' to the council for 5 years, she changed the locks and caused minor damage in the house, after 5 years. But I had stopped communicating with her as I wanted her out, she was making stuff up about the house to get a council house-which she did. The house was vacant for one month while I did renovations myself-I no longer work, just maintain the properties.

I do not have a mortgage on any property, I paid cash, things were cheap in 2012, and in 2014 I got a cheap fixer upper, in 2016 I bought a fixer upper from the bank and in 2021 I bought a house from the bank that was in ok condition and just needed 2 weeks work and e5000 put into it. I had to borrow money from friends to pay for some of the last one, as I had not enough cash and my rental incomes is not'strong' enough to get a mortgage, I paid back the loans in 4 months. I invest in stocks and has been good , which pays for the properties, but I've also gotten burnt and lost over 90% of my portfolio in one event.

If you are halfway decent with tools, can set boundaries and read and follow through on legal paperwork, as well as be fair and consistent, being a landlord can be profitable, or, it has been for me.

So, just to balance things out a bit-there's the positives. I'm under 50, I'm not sure if I will buy another property or not, I'll see what happens. I like it, I like doing work on them, and it adds a bit of excitement.

The only way I would consider selling one currently, would be if I had another plan for the money, but I cant see that happening.

Tenant gets the notice they are entitled to which can be up to 8 months. The tenants doesn't leave. Application to the RTB. Adjudication. Appeal to the Tribunal. Possible appeal to the High Court. Determination order. Application to the District Court. Appeal to the circuit court. Send out the Sherriff to take possession. Luck to do it in 4 years. That does not count a potential judicial review of the adjudicator, tribunal, district or circuit court.

Anbd dont forget that they all got a stay of execution during the pandemic too, just to add to it.

Thats true about the damp. I remember year ago we bought an apartment full of damp from a guy at a cheap price to flip. The tenants had just moved out and into the apartment across the hall owned by the guy who sold the apartment to us. It took 6 weeks to do it up as we were working full time in our real jobs.

The told tenant used to wander in every day for a nose into their old apartment. Invited me in one day for a cup of tea and was moaning about the mold that was everywhere in the old apartment (thats why we got it cheap). Now she had only invited me in really to get me to fix a tap, which i fixed. But I was also in that apartment 4 weeks later. She was asking me how to get rid of the mold.

Her new place was now covered in mold.

Two apartments in the same building, exactly the same. Tenant leaves one mold infested one to a lovely clean apartment. 4 weeks later mold everywhere in that new apartment. Lifestyle is nearly always the cause of mold.

Even in my parents house we get mold in the corners of some rooms, especially the bathroom. Once you see it you get up and clean it and its gone for months. Then repeat when it appears again. If you leave it it will just get worse. Clean it as soon as you see it and you will be fine.

Oh, I'm definitely aware of that... it seems to be the biggest problem in rental properties.

My tenants had a damp problem in a house, but I had lived in that house for 6 years, never had a problem-turns out they were drying clothes in the sitting room, they were pulling out the part for the extractor, but not turning it on-When I explained it to them, and they stopped doing it, it hasnt happened since, that was 6 years ago.

I went to a rental this year, tore the place apart looking for why there was damp, I arrived unanounced one day to service the boiler, they had a clothes line strung across the living room-this woman was 48 with 3 teenage daughters-imagine the amount of clothes they were drying? it was frustrating that I had to go to so much problem, but I thought a 48 year old woman that has lived in Ireland for 20 years would know better, obviously not.

I sent her on articles to explain the problem as she did not believe me when I said it to her. So she has stopped now, again, damp problem gone. but, really some people 🤯

I consider them teething problems, and I advise them, if they dont listen to me, I have a professional advise them and I let them know that since they are the cause of the problem, they have to pay for the professional-it works :)

The day of little buy to let empires is over, the future is institutional.