I caught up with an old college buddy this weekend. He has been working in the middle east the last 10 years and has managed to save a sizable amount in cash.
He is from Cork and looking to buy an investment property there. It will soley be used to provide an income as he is will be moving back shortly and looking to give up work.
He has looked at quite a few places but seems to have narrowed it down to one in particular. It is a 5 bed house ( all 5 beds ensuite ) . Good condition with a decent size kitchen /living room.
Its price is €280k but he will be lucky enough to need no mortgage .
House is let individually into 5 bedrooms. Each tenant pays €600 per month. It brings in €36k a year . The current agent will do the letting so takes 10%.The landlord pays bins , broadband & heating so will have expenses.
Seems a good return to me but I am no expert/experience. The house is 10 minutes from the city on the north side so don’t think it will ever appreciate much but this isn’t the reason he is buying.
What ye reckon about this deal? He has never been a landlord so may be a baptism of fire.