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