Ive been saving for a while now and have scraped about €500k and would like to invest in a property to avail of the rent.
Ive been looking in malahide so far and have found a few good properties.
Would any of your recommend somewhere else I should be searching for maximum potential resale value and rent income in dublin?
This would really help lads, thanks.
these have grabbed my attention so far:
myhome.ie/residential/brochu … th/2617146
myhome.ie/residential/brochu … in/2613838
the time and effort of that though would be too much i think ‘barney gumble’
Not mad on the Robswall place. For half a million euro (or what you’d have to pay to rent such a place) you’d expect not to see so many neighbours out the front and back windows. That estate always strikes me as being fairly high density giving the prices. Near the seafront and handy to a gym/playground. It’s a nice walk into Malahide village but you wouldn’t just run down for a carton of milk. Used to a Spar just before the Grand Hotel but I think that’s a cafe or something now.
What are your thoughts on the Millview property? Do you have anything else in mind? maybe in a different location? I need a place that will see a substantial markup in the next decade and with a fairly good supply of tenants.
What do you mean by ‘substantial markup’? And ‘need’ Are you gambling on capital appreciation here?
Hmmmm … Now, Now, Ham Man … Hold Up Here!
Methinks this was the very sort of thinking that might have got us all into a spot of recent bother!
Your expectations of a “good supply” - these are people you are referring too by the way - might be a little more dependant on your own minding of the store; by way of good marketing, proper and prompt maintenance and mannerly conduct overall ; than you may anticipate as well.
Check the ‘Demographics’ thread here - note that your ‘supply’ might be drying up fast!
Should you not really be looking at investing in East Aisan Widget Manufacture or something?
Millview house looks nice. Following what Barney said, is this the best ‘value’ for your money? You might even pick up three perfectly fine 3-bed houses for that kind of money. Your concern about the burden of managing several properties is understandable. Probably wise to buy relatively close to where you live.
If Malahide is near you, maybe houses in Swords would be worth a look? I also heard of someone picking up a perfectly fine 2-bed apartment opposite Portmarnock train station for 115k. I was a bit shocked as occupancy rates look decent (I’ve friends there) and rents offer a good yield even at 150k. Malahide marina always looks overpriced to me but you’d never struggle to rent it. Or sell it eventually.
But I’d probably buy three 3-beds in Celbridge or Maynooth with my (imaginary) €500k.
Property investment can go both ways. If you buy based on speculation in hope of capital appreciation, you are merely gambling IMO and you might as well put your money on a football team as the odds are the same - 50/50, although many would say that the odds are in the favour of further price falls given the state of the country, huge number of people in arrears on their mortgage, etc. Even buying based on current yields is not safe as rents are very high at the moment in Dublin and there is no guarantee that these prices will be sustainable in the future. Always be prepared and in a position to lose money in value and to eventually take lower rents when you’re getting into this. If you think that it is a one way street with endless price rises and rent rises, then you could find yourself sorely disappointed just like the last group of people gambling en masse circa 2006.
On another note, houses in ‘good’ areas usually have the worst yields and could therefore be deemed worse from an investment point of view.
One of those places is very ordinary looking, the other isn’t really in Malahide. Rents seems to be around 2k/month.
So that’s about 4.5% gross yield based on 11 months a year occupancy, with all eggs in one basket.
You’d be brave.
I don’t think vacancy periods are included when calculating gross yield, so the calculation should be based on 12 months.
Net yield however would include vacancy, running costs etc.
Last I heard the Green REIT fund was valued at 360m with total assets of 300m cash and no actual property.
One way of interpreting this is that you lose 17% as soon as you buy in.
(happy to be corrected)
A cautionary note on this one.
I am not convinced that the poster is all that they profess to be.
Eschatologists post indicates a gross yield of circa 5% on 500k (per properties above). Now, a person who has managed to save 500k over the last number of years, free and clear, and who has not invested in property to date, is unlikely to have any real difficulty in finding an investment product outside of ‘the Irish property market’ which would yield at least 5% gross profit, with the same or less risk attached.
Perhaps I am just being paranoid, but this does seem a bit of a red-herring from the start.
Agreed - one of the big advantages of RE investing is the ability to leverage giving potential for higher returns on money invested ( or losses as the case may be ). A straight 500k cash is likely to find a better home elsewhere - as suggested an REIT fund or market index tracker.
True, but AFAIK only one Irish one, since the legislative changes were only introduced in the last budget.
The OP is expressing confidence in the Irish property market, so an (the) Irish REIT is the obvious vehicle to drive over that particular cliff.
People like this probably don’t exist
There are a couple of new posters from April this year over on boards.ie with hundreds of posts all talking up the property market and attacking those of us who arent so confident that that the houseprice collapse isnt over
As other posters have said - your plan is not exactly a good return for investment.
The properties you posted are quite different. One is old and needs a lot of work and the other is new and modern which you could rent out immediately. The millview one is way overpriced - nicer ones have sold for less recently. I live in the estate and one sold a couple of months ago on the same street with same layout and garage conversion (a private sale) for €510k. Garden wasn’t as quite as big but it was pretty nice decor-wise and much more rent-able without having to drop another pot of money to do it up.
Gainsborough in Malahide always rents well - there is a detached one in your budget that looks reasonable given the prices being asked by others in there. Rent return is probably better too…
Apologies for not posting sooner but wow thanks lads.
All these posts have been truly helpful and mind-opening, and confusing.
I think the first step is to consult a financial advisor and talk to him about all these options.
Thanks again guys.
If you wouldn’t mind me asking , how did you manage to ‘scrape’ together 500k cash. Do you , a) sell drugs b) win the lotto or c) sign for a premiership club?