Best location for limited budget in Dublin

handlemaster · 11-01-2021 11:51am #1

A friend is looking to invest in property in Dublin max 170k , she has mentioned a few locations within that budget, Tallaght , Balbriggan, Finglas, D15 etc.

I would be in favour of D15 but wanted to see what others thought. She is focused on the ROI so more bang for her buck, and will not be living there herself so return is the key.

Caranica · 11-01-2021 12:27pm

That budget isn't going to get a very desirable property, even in those locations. Adding in rental taxes, return isn't going to be great. Is the plan to rent to a local authority?

DonalHoran · 11-01-2021 7:50pm

I lived for a number of years in a nice affordable private housing dev in Dublin 15 called Saddlers Estate - within a short walk to Blanchardstown Shopping Centre & a few mins walk to the Village of Mulhuddard.Good bus connectioons to the city & lots of shopping facilities on the doorstep.The houses are 3b/rs ,quite comfortable,spacious,well laid out internally,gardens front/rear & there are lots of well maintained green spaces.Overall quite a nice convenient development within commuting distance of the city.Price range would be a bit over your Budget ( mid/late €200k)but if you could stretch to it - you could easily rent out 1 or 2 rooms out of 3 thereby achieving an additional tax free letting income that could go towards paying your mortgage/utility bills etc.Once Covid is over,you should have little difficulty finding tennants to share with the level of employment in Blanchasrdstown SC & you are building up in the ownership of a rising Dublin property asset over the medium/longer term.Google Saddlers Estate Mulhuddard ,D15 to view the dev. Best of luck !!

handlemaster · 11-01-2021 8:42pm

DonalHoran wrote: »

I lived for a number of years in a nice affordable private housing dev in Dublin 15 called Saddlers Estate - within a short walk to Blanchardstown Shopping Centre & a few mins walk to the Village of Mulhuddard.Good bus connectioons to the city & lots of shopping facilities on the doorstep.The houses are 3b/rs ,quite comfortable,spacious,well laid out internally,gardens front/rear & there are lots of well maintained green spaces.Overall quite a nice convenient development within commuting distance of the city.Price range would be a bit over your Budget ( mid/late €200k)but if you could stretch to it - you could easily rent out 1 or 2 rooms out of 3 thereby achieving an additional tax free letting income that could go towards paying your mortgage/utility bills etc.Once Covid is over,you should have little difficulty finding tennants to share with the level of employment in Blanchasrdstown SC & you are building up in the ownership of a rising Dublin property asset over the medium/longer term.Google Saddlers Estate Mulhuddard ,D15 to view the dev. Best of luck !!

Thanks for that . As I was saying fro a friend who would not be living there. She doesn't have a budget of 200k. Max 170k .

Samuel T. Cogley · 11-01-2021 9:21pm

Possibly an investment in some sort of REIT if that's even possible.

Edit: If she's on a limited budget buying the property, property investment is probably not a good idea. She'd want a contingency fund of at least €20K imho. Perhaps she has that factored in. Not as big an issue if letting to the local authority.

PhoenixParker · 11-01-2021 9:25pm

I think Finglas is worth a punt at the moment.
The green luas is meant to be extended in that direction in the next decade, it's not that far out from the city and the houses themselves seem OK. Bits of Finglas are lovely and a lot of it is of an age to start "settling" soon.

Tbh though, she'd probably be better to pick a small regional town that's doing ok and find a house that's not popular for purchasers but could be easy to rent eg something on or near the mainstreet.

DubCount · 11-01-2021 10:18pm

handlemaster wrote: »

A friend is looking to invest in property in Dublin max 170k , she has mentioned a few locations within that budget, Tallaght , Balbriggan, Finglas, D15 etc.

I would be in favour of D15 but wanted to see what others thought. She is focused on the ROI so more bang for her buck, and will not be living there herself so return is the key.

All the areas you refer to are massive. Tallaght has a population of over 70,000. That includes all kinds of areas - some more desirable than others. I would say the same about the other areas you mention. I think if your friend is investing in property, they should take the time to know the areas they are investing in. Look at available properties and then research the specific estate, visit at different times of the day etc., check out rents in that estate etc..

If your friend is concerned about the difference between 170k and 200k budget, they probably shouldnt be making a single property Buy2Let investment. It doesnt sound like your friend has the financial backing to sustain the potential risks from a rogue tenant. Potential of 2 years without rent plus a 5 figure bill for property damage and legal fees. It doesnt sound like your friend could afford the risks of losing a case in the RTB or the WRC for breaching some spurious piece of legislation. It doesnt sound like your friend could sustain the risk of a Local Authority inspection requiring some expensive investments in the property.

Have your friend talk to a financial advisor. There are easier and less risky ways to make money than being a one-property Landlord. Has your friend optimised their pension, or considered REITs, or ETFs.

handlemaster · 12-01-2021 10:18am

Caranica wrote: »

That budget isn't going to get a very desirable property, even in those locations. Adding in rental taxes, return isn't going to be great. Is the plan to rent to a local authority?

Desirable property ! This is for investing I dont think there is an issue about the property being in a desirable area. All things considered it should be a good condition and have a demand for rental which would give a good return. I did a quick search on daft there are a number of properties in this price range.

https://www.daft.ie/property-for-sale/dublin?sort=priceAsc&pageSize=20&numBeds_from=1&salePrice_to=175000&salePrice_from=100000

Caranica · 12-01-2021 11:05am

handlemaster wrote: »

Desirable property ! This is for investing I dont think there is an issue about the property being in a desirable area. All things considered it should be a good condition and have a demand for rental which would give a good return. I did a quick search on daft there are a number of properties in this price range.

https://www.daft.ie/property-for-sale/dublin?sort=priceAsc&pageSize=20&numBeds_from=1&salePrice_to=175000&salePrice_from=100000

I meant desirable in terms of rentals. Balbriggan doesn't have anything like the rental demand of the other areas and return on one bed units is poor. The 5 bed 3 bathroom in County Clare on that search looks nice but I'm not sure about rental demand

handlemaster · 12-01-2021 12:34pm

Caranica wrote: »

I meant desirable in terms of rentals. Balbriggan doesn't have anything like the rental demand of the other areas and return on one bed units is poor. The 5 bed 3 bathroom in County Clare on that search looks nice but I'm not sure about rental demand

No doubt a deliberate estate agents attempt to drum up demand

DonalHoran · 12-01-2021 12:48pm

If you friend is looking provincial/outside of Dublin well then she would have plenty options within her price range but perhaps a decent apartment with no gardens to maintain & someplace that has a good mngt co to maintain common areas etc would be desirable.Good quality fully furnished apts in Tralee ,for example,would command €900 plus per month & give a gross yield of circa 9% on her investment purchasing at circa €120k. However property renting is not for everybody & in my opinion is best dealt with locally where you can keep an eye on your property & indeed be prepared for the odd troublesome tennant - she could possibly consider more hassle free ways to invest her few bob.

the_syco · 12-01-2021 7:48pm

Maybe put money towards a cask? They seemingly offer a buy-back scheme to get a percentage back :pac:

handlemaster wrote: »

I did a quick search on daft there are a number of properties in this price range.

https://www.daft.ie/property-for-sale/dublin?sort=priceAsc&pageSize=20&numBeds_from=1&salePrice_to=175000&salePrice_from=100000

A few one beds. Some places far away in Balbriggan. A few deals, but you should let her know that letting out a place during an eviction ban if she has a limited budget may see her loose her cash if the new tenant decides to live rent free.

I'd probably pick Finglas or Tallaght over Balbriggan, mainly as there'd be demand there. Also, I'd say there'd be more of a chance that the County Council will do the 10/20 year rental in the Finglas & Tallaght areas.

Would recommend a two bed, as I doubt the one bed would qualify for many families in the 10/20 year scheme.

Also, even though BER isn't much to go by, perhaps have a minimum BER. D2 would probably mean it has some sort of insulation. Check what BER is the County Council minimum for the 10/20 years lets before buying. Even if she doesn't intend to do the 10/20 year let now, it'd be an option in the future. Would probably avoid the Student Village, as that may be a money pit each summer.

=-=

I refer to the 10/20 year scheme, as after the initial 6 months, the CC fixes any issues, and your mate will get the rent from the CC, not the tenant.

Best location for limited budget in Dublin

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