The return of Robopaddy?

[gaius]

One of the least-missed features of the bubble years was specuvestors buying up investment properties (often off the plans) with little or no research and even less understanding of how they were going to get a return bar flipping it later. I’ve recently noticed a definite trend of folk with resources seeing news headlines and wanting to splurge on “investment opportunities”, press the “make-me-money” and sit back to enjoy the riches. Dare I say it but it’s back as a canteen hot topic of conversation.

Here’s an example of one from boards.

I am considering buying an investment property here, and may at some point live there for a while. I wish to pay between 120000 and 150000, and don’t mind doing some work to update. Where is one likely to get a better, more long term tenant? Also house or apartment? What would you do? I have never lived in Dublin, so hardly know it at all and will really appreciate and value your opinions.

I am attracted to inner city areas with a village feel. What is D8 like? I realize that I have some conflict regarding long term tenancies, because I am attracted to areas that probably wont attract this type of tenant. I really appreciate this help and feel like I am getting a crash course on the the geography!! Also where would one completely avoid?

That last one got this killer put down:

Dublin.
You don’t know the area. Avoid Dublin.

Anyone else seeing the return of slightly more casual investors enticed back by Indo headlines?

[jake76]

The system will continue to be rigged to the “investor” class, if you can’t beat them…

[DSE3Br]

@jake76

The system will continue to be rigged to the “investor” class, if you can’t beat them…

You assume they will profit. I’m in the market for a sizeable investment at the moment and property looks poor.

[gaius]

@DSE3Br

@jake76

The system will continue to be rigged to the “investor” class, if you can’t beat them…

You assume they will profit. I’m in the market for a sizeable investment at the moment and property looks poor.

He didn’t say anything about profit, just that entry to the market is rigged in their favour.

[DSE3Br]

Why join them if they’re not making a profit?

[jake76]

@DSE3Br

Why join them if they’re not making a profit?

Is it impossible to buy a investment property in Ireland and it provide a better return than money on deposit?

[catbear]

@jake76

The system will continue to be rigged to the “investor” class, if you can’t beat them…

I don’t know, I’ve seen enough people become shells of their former selves after their dalliance with the bubble.

[DSE3Br]

@jake76

@DSE3Br

Why join them if they’re not making a profit?

Is it impossible to buy a investment property in Ireland and it provide a better return than money on deposit?

It’s a bit simplistic to compare it to a bank deposit. The risk involved, the effort involved, the liquidity of the asset. Property (aside from PPR) is not for me in the current market.

[jake76]

@DSE3Br

@jake76

@DSE3Br

Why join them if they’re not making a profit?

Is it impossible to buy a investment property in Ireland and it provide a better return than money on deposit?
It’s a bit simplistic to compare it to a bank deposit. The risk involved, the effort involved, the liquidity of the asset. Property (aside from PPR) is not for me in the current market.

True but you can understand why others might make the decision. I am on the fence myself.

[DSE3Br]

@jake76

@DSE3Br

@jake76

@DSE3Br

Why join them if they’re not making a profit?

Is it impossible to buy a investment property in Ireland and it provide a better return than money on deposit?
It’s a bit simplistic to compare it to a bank deposit. The risk involved, the effort involved, the liquidity of the asset. Property (aside from PPR) is not for me in the current market.

True but you can understand why others might make the decision. I am on the fence myself.

Absolutely, risk is subjective. Bank deposits aren’t exactly risk free these days either.

[gaius]

But you guys are at least making some notion of accepting that there is a risk and you need to be informed about the area you’re investing in. The boards thread above is a slightly extreme example of the “buy money making machine, pull lever and take money” specuvestors that appear to be slowly making a comeback.

I’m actually not too bothered if it’s their own cash they are using but if they are getting credit.

[DSE3Br]

I think it’s quite safe to assume they are not getting it off banks. Not in this environment.

[Rimbaud]

@gaius

I’m actually not too bothered if it’s their own cash they are using but if they are getting credit.

Recently drew down on a RIP mortgage,had to pony up 25% of price,skin in the game as they say but banks are lending to professional landlords…yes I know this will probably trigger a rash of smilies,hope to get another RIP mortgage fairly shortly as there are opportunities for landlords who know what they are doing as opposed to the vast majority who havents a fucking scooby doo.

[gaius]

@Rimbaud

@gaius

I’m actually not too bothered if it’s their own cash they are using but if they are getting credit.

Recently drew down on a RIP mortgage,had to pony up 25% of price,skin in the game as they say but banks are lending to professional landlords…yes I know this will probably trigger a rash of smilies,hope to get another RIP mortgage fairly shortly as there are opportunities for landlords who know what they are doing as opposed to the vast majority who havents a fucking scooby doo.

Don’t think anyone really has an issue with that. My worry is that folk asking “where’s a good place to buy in Dublin? I don’t really know anything about Dublin” might be getting finance. In fact, it more than worries me, it terrifies me.