That's my point. Its hard to give reasonable advice if you are only giving breadcrumbs of detailsWithout saying too much....
That's exactly the scenario I had in mind. I really just wanted to see if anything else would be better. I know the price of property could go down in that time but at least I would have some income from it and could hold on a bit longer until the time was right to sell it. I live in Dublin so the 300k would just about buy me a 2 bed apartment now. Only problem now is finding one that hasn't been rented previously or one that has been rented out at near market rents recently.
That's exactly the scenario I had in mind. I really just wanted to see if anything else would be better. I know the price of property could go down in that time but at least I would have some income from it and could hold on a bit longer until the time was right to sell it. I live in Dublin so the 300k would just about buy me a 2 bed apartment now. Only problem now is finding one that hasn't been rented previously or one that has been rented out at near market rents recently.
Sure, as I said, I'm not a landlord, this is only from my experience of renting and ringing landlord to say this or that is broken. Perhaps its down to my selected rental quarters! As you mentioned, the upkeep/repairs is the obvious one. To be honest, I would have thought your figure was quite a low outlay per year, considering a single washing machine/white goods replace/repair could cost that alone. Factor in any re-painting, waste charges, home insurance is another couple of hundred quid, PTRB registration. I mentioned the service fees as apartments were already being discussed in the thread. Obviously if that's not applicable, then that's not an outlay. My point was just to consider that all those can add up if you are on a tight budget, not that all were applicable in all scenarios.Username you mention the plethora of costs after purchasing. Woud you mind outlining what these are please? I spend €200-€300 per yr average on upkeep/repairs. I dont have any annual “service fee” - maybe buy a house 8nstead and avoid this cost. Property tax of course is a nuisance and tax on rental income is what it is but i really do think the argument againts property investment on AAM should be more balanced.
I know the price of property could go down in that time but at least I would have some income from it and could hold on a bit longer until the time was right to sell it.
Dear Mary,
Cremeegg drew my attention to your post.
I am a 20 year old student at University in Ireland. If you loan me €200k, I will purchase a property in the estate where I am renting at the moment. €180k purchase price plus €20k for fees, furniture and minor refurb. I will use one room for myself and rent the other rooms to other students. I will charge rent of €14,000 and so avail of the rent a room relief. This is less than the prevailing rent in the area. From this I will pay you €200 per week or €10,400.
In the event that I go abroad for a period during my studies, I can ensure that the property will continue to be rented and managed.
My intention would be that when I graduate in 5 years time I will either (1) sell the house and return your €200k or (2) Remortgage the house and return your €200k, or (3) renew the arrangement for a further period. The contract would need to allow some flexibility around the timing of this.
I am perfectly happy for you to have a charge over the property and the right to appoint a rent receiver. I am happy for you to have your own solicitor draw up the contract.
This would be an exceptionally good deal for me, giving me rent free accommodation for the 5 year term, I would be in a position to fund the cashflow due to a better return than landlords normally receive, as the rental income would be free of tax.
It would also give you a return of 5.2% during the term and the €200k returned at the end of that time. I hope that is of interest.
I would be delighted to hear from you.
regards
FO'C
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