I am considering investing in property again..........?
My History...
I have 5 investment properties, purchased between 2002 and 2007 all in Swords, all on Danske bank interest only (for life) mortgages, tracking at 0.75% above ECB.
Gross rents are approx 3 times the cost of each mortgage. So even after all costs rental profits are v good.
I live in Swords so manage them all my self.
They are all in serious negative equity, but are long term investments so I am not particularly concerned.
My Plan...
Considering purchasing as a cash buyer with a friend.....
( the purchasing with a friend issue has its own concerns!!)
Worked example of property I have seen .......4 bed swords
Cost 180000
Stamp duty 1800
solicitors fees 1000
total 180000 after i hopefully negotiate a discount in price???
So realistically 180000..... plus 6000 fixtures and fittings = 186000
Rent 1300 p/month
15,600 p/year
Rental yield 15600/186000=8.4%
Annual costs
Management fee 700 p/year
Local property tax 315 p/year
Repairs and replacing fixtures and fixings 1000?
PRTB 90
Daft ad 70?
= total approx 2000 (rounded down)?
15600 rent minus 2000=13600 rental profit/year before tax
And V. Approx 7000 after tax
Rental yield looks good, However this project is more about capital appreciation.
Other consideration for me would be to instead invest the 186000 in a savings bank. Best rate currently is fixed 1 year Danske bank at 2.75%
186000 x 2.75%= 5115
and after deposit interest retention tax which is 33% leaves 3427 significantly less than the approximate after tax rental profit figure (7000).
Avoiding any speculation on house prices, does this look like a runner?
Any other pros, cons or comments appreciated.
My History...
I have 5 investment properties, purchased between 2002 and 2007 all in Swords, all on Danske bank interest only (for life) mortgages, tracking at 0.75% above ECB.
Gross rents are approx 3 times the cost of each mortgage. So even after all costs rental profits are v good.
I live in Swords so manage them all my self.
They are all in serious negative equity, but are long term investments so I am not particularly concerned.
My Plan...
Considering purchasing as a cash buyer with a friend.....
( the purchasing with a friend issue has its own concerns!!)
Worked example of property I have seen .......4 bed swords
Cost 180000
Stamp duty 1800
solicitors fees 1000
total 180000 after i hopefully negotiate a discount in price???
So realistically 180000..... plus 6000 fixtures and fittings = 186000
Rent 1300 p/month
15,600 p/year
Rental yield 15600/186000=8.4%
Annual costs
Management fee 700 p/year
Local property tax 315 p/year
Repairs and replacing fixtures and fixings 1000?
PRTB 90
Daft ad 70?
= total approx 2000 (rounded down)?
15600 rent minus 2000=13600 rental profit/year before tax
And V. Approx 7000 after tax
Rental yield looks good, However this project is more about capital appreciation.
Other consideration for me would be to instead invest the 186000 in a savings bank. Best rate currently is fixed 1 year Danske bank at 2.75%
186000 x 2.75%= 5115
and after deposit interest retention tax which is 33% leaves 3427 significantly less than the approximate after tax rental profit figure (7000).
Avoiding any speculation on house prices, does this look like a runner?
Any other pros, cons or comments appreciated.