what would this place in rathmines fetch ?

EA told me 1500 pm , id be thinking closer to 1300 myself , location is good and bad , rathmines but down a dour little cul de sac

their is 275 k on it ( not my bid ) , i would not go above 280 k as @ 1400 , thats 6% yield

myhome.ie/residential/brochu … -6/2031503

You really have cash burning a hole in your pocket. If you are looking for an investment property then I would suggest not looking in Ireland. Taxes, defaults, emigration etc. - a brave move.

You also seem to be bouncing around town looking at yield - if you want to future proof yourself you need at least 10% yield.

and what if i have some money to spend , let me know when your done with the personal jibes or when checking out various locations is against the law

this is a forum , if people find posts uninteresting , they can ignore and pass over on them

as for 10 % yields , yeah its doable in lesser area appartments in dublin or on houses in countless ( dieing on their feet ) provincial towns

Hi Bob,yield is key,its your friend,your best friend,until the end,it will make or break you,you really need to be getting 10%+ yield at a minimum to future proof your investment in Irish property,there are way too many known unknowns,even experienced landlords who dodged the tiger years would still baulk at loading up on Irish property.There are so many potential pitfalls,NAMA,Property Taxes etc ad nauseum that will devour your bottom line.

My advice is simple,stay away from RIPs (Funny that only really noticed that RIP really only belongs on a gravestone)

The house you linked to is on at 325k…masively overpriced and charmless,worth 140k…

i agree its dour but seriously , you open yourself up to ridicule when you throw out figures like 140 k and completley contradict your main thesis ,that yield is king , a person who rigorously focused on yield would not care if the property lacked charechter , in fact , any place which can fetch a yield of 10 % will either be a charechter free zone or else be in a duff location , 10 % yield is not achievable in a generic appartment block in dublin 6 , let alone an actual house , its not even achievable around stoneybatter , bar the murder end of it

when i hear cliches like " futureproof " , yield is your friend " etc , i have to wonder if any original thought has left the building

You asked for advice I gave it then you threw it back in my face rather insultingly so best of luck in the rental game bob,been at it for 15 years longer than you have and will be at it 15 years after you post threads on AAM about negative equity and how best to exit the rental business without having to sell your PPR. :slight_smile:

No personal jibes there Bob. As someone sitting on a buy to regret with 10% yields in a not so salubrious area I just see no option but reducing yields. The only reason to invest in Irish property now is to protect cash from inflation - I am considering doing the same myself (also burning a hole in my in my very deep pocket - and what if I have money to spend :nin ). I suggest you will get a better reaction on here if you engage rather than thinking we are trying to take you down. 3x 100k means it is only suitable for someone with cash or earning in excess of 100k. I suggest your £260k sterling would go far further in the uk than over 300k yoyos in Ireland. FYI I was complimenting you by saying you were bouncing around looking at yield - few others do and get bogged down by geography. Sorry if you took that the wrong way.

Start again?

To be honest, I see no reason to apologise for pointing out that this place is bonkers as an investment, as is most Dublin property. The asking is more expensive per square foot than the average for D4, the yield is possibly less than 5% gross, and you’d do better net in a state savings scheme where you would be paid for scratching your hole instead of landlording.

maybe im reading it wrong or im simply too easy to please when it comes to return on money but i see 6% as pretty decent , you get a max of 3% in a semi safe bank , most bluechip stocks ( with any growth prospects ) pay no more than 4% div or 5% at most ( vodafone is the only solid company i know paying 6% , tesco pays 6% but thats cause its down 30% since a few short years ago ) , all in all i would be content enough with 6% even i saw no capital appreciation for ten years , you cant borrow money off the back of a stock portfolio

as for the uk , london saw no drop at all in house prices since we had our bust in 2007 and is twice as expensive to rent as dublin , the rest of the uk with the exception of possibley edinburgh is unappealing and edinburgh is more expensive than dublin to buy a house

that said if someone can suggest a location in dublin where 10 % is achievable on houses ( not appartments ) , then im all ears

3% in a bank. 6% in property. So you think 3% is an acceptable risk premium for getting into a market that has dropped 14% this year (capital values) with downward pressure on rents as NAMA property fees up (hundreds of empty apartments sitting on all sides of Dublin).

You also need to factor in new property taxes and maintenance of an older property.

If you are saying - “I want a house for yield and a hedge against inflation” - fine. If you want a house to sqeeze out a bit more return - less clear that is a sustainable view point. At least wait until Allsops put out two catalogues this Autumn for 175 auction property (as opposed to the usual 110).

If it was me I would be buying 3 of the cheapest apartments I can find in D8 - much better scope for yield and a diversification of void period risk.

Tesco yields 4% today - it never yielded as high 6%

damn you motley fool , they told me vodafone yields 6% aswell , i bought it at a lower price so percentage would have dropped , unfortunatley yahoo finance doesnt show a yield for the non NYSE listed stocks

A 6% yield on property does not equate to a 6% return when leverage applies
Leverage magnifies the return hence in a normal functioning property market investors would only need a yield 0.5%-1.0% above the cost of borrowing to make a decent return.
A BTL with 80% LTV, 4% borrowing costs and 6% yield would give a return to the investor of 14%. That’s an 11% risk premium over cash, not 3%
This however ignores the effect of leverage on capital appreciation or depreciation. A 10% yield would offer a sufficiently high return to compensate for the risk of capital depreciation.

I’m glad to see that property price speculation is still in the back of peoples’ minds when making decisions! Not so sure 6% gross is worth the trouble unless you’re satisfied that rises in rent and capital values are inevitable.

Why would you care about the character of the place or the quality of the location if is giving you the best return on your investment? Do you plan on living in this house at some point?

Irish_bob… i assume you have also factored in taxes when comparing rental income and deposit interest and hassle of filing rental income? :slight_smile:

Regarding the property - yeah that’s very rentable. Assuming the other two bedrooms are actually doubles, three single lads early to mid twenties would be very happy there. Put a big TV in the living room and you could definitely charge an extra €100 per month. I would guess you could price it somewhere between these two:

daft.ie/searchrental.daft?id=1203746 (Similar to Blackberry but twin beds … so Blackberry better). €1650
daft.ie/searchrental.daft?id=1230692 (This one is better than Blackberry). €1800

I cant seee this renting for more than 1400. Maybe 1500 tops if you get a few people on the panic.

I cant see lads paying more than 500 a room in this.

If you have money set aside for a house and house prices are falling then inflation isn’t an issue. In this case the idle cash will give you a real rate of return while house prices are still falling.

ive crosses this property of my list , i much perfer the two up two down traditional style terraced houses around oxmantown road stoneybatter which can be bought for around 200 k and provide a better yield , blackberry lane is an ugly little cul de sac

thanks for all the opinions , much appreciated

ps , while looking at two drab small two bed houses in ranelagh today , i got talking to an asian couple who were also at the viewing , they claimed to have been searching for a place since march , they seemed like well read people , they also claimed that property had definatley risen in price this past six months , particulary in south dublin

If you have been at it for 15 years and are so shrewd, would you not have sold your investments in 2007?

I think a yield of 10% when we have a monetary policy of 2% inflation is relatively high. Looking on global property watch I don’t see any capital in the euro having that.

On the OP I think it’s a great location and does not seem to be in bad nic but despite it’s 3 beds most families would not consider it because of it’s size, in this market can’t see it going much more than the offer of 275k