BTL Residential Property in Galway city

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clarecelt

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Hi,

Currently looking at 2 bed apartments in Galway city. The rent varies between €700 and €950 and thus wondering what are the best locations in the city.

I have see a few apartments which would require some refurb and often crippled with €2,000 Euro management fees.

Any suggestions of where to look or areas to avoid would be appreciated.

Thanks
 
There's a thriving rental market in Galway. If you are intending to purchase to rent, be careful letting to students, which have the possibility of wrecking any property due to over indulging in Alcohol.

As for the better areas, the city centre or near the University are the better areas.
 
Bronte, I am planning to purchase a "buy to let" and have walked the streets of Galway in the last few weeks and spoken to many Estate Agents. There are a lot of apartments for sale and some are geared to professionals and many to students.

I know that there is general benchmark to achieve a 10% gross yield and haven't seen anything that will come in at that level around city centre.

Should one be looking at the gross yield or guestimating the capital appreciation of the property (without speculating increases :) )

Thanks
 
clarecelt said:
and haven't seen anything that will come in at that level around city centre.
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I wouldn't mind if you haven't seen to the level required. The Agents in Galway are living in Cloud Cuckoo land. You will be on a different playing pitch if you make a cash offer for a property, especially where you insist that the vendor is notified of any offer you make.

It's a buyers market in case you didn't know.
 
This does not apply to Galway city, particulary certain parts. Property is moving in Galway (and Cork and SDC) there are 3 very particular markets. Now is OP was talking about say Waterford and apartments it would be a different story.

Galway has a large student population, they tend to live on the Newcastle side which is near the university side or for the GMIT, Renmore side. More expensive accommodation for workers would be found say on the developements on the docks. But anyway around Eyre Square, taking that as your center point, in general.
 
Bronte said:
This does not apply to Galway city, particulary certain parts. Property is moving in Galway (and Cork and SDC) there are 3 very particular markets. Now is OP was talking about say Waterford and apartments it would be a different story.
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Sorry Bronte, you are incorrect with what you state. Apart from the usual shortage of family homes in the centre of Galway, it is an open market for buyers. Mortgages for investment property is non-existent in Galway. And if you want examples, I'll happily pass on the info.
 
Mercman I haven't submitted any formal cash offer for any property as just at the beginning of this journey but your suggestion to ensure vendor is informed is a very good one though I presume they are not obliged to do this.

Admittedly it is wrecking me head as I am trying to look at all potential property opportunities out there.

Initially I looked at commercial investment in Clare and Limerick but after some consideration to the amount I have to invest , finding tenants, associated commercial costs and the amount of property out there on the market I am steering instead to residential.

The amount in cash that I have to invest is €140K but realistically would like to get something less than this.
 
clarecelt said:
though I presume they are not obliged to do this.
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Well if it's an apartment you're going for, just ask the agents for a copy of Management Accounts and ask the Management Company to forward your offer to the vendors, whether it be individuals or a Bank.

Estate Agents work on Commissions. The more a buyer pays the more they earn. Simple as that, especially in an unregulated industry. How many times have I got to state this ?
 
Have you considered Salthill, plenty of apartments there, often rented by young professionals.
 
Peanuts said:
Have you considered Salthill, plenty of apartments there, often rented by young professionals.
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They can be a bit pricey for what you're getting. 140K should could get a decently built house in Tirellan. Considered large by current standards. Rent easily 700 Euro. Or Mullan Mor is within her price range. I couldn't go out so far as the newer housing estates as they don't seem to be well serviced.
 
Yes had a look at Salthill but a bit more pricey..

As regards Tirellan I figured that it being out a little bit from centre that you wouldnt command a high rent and also may have vacant periods.

As an investment I am wondering if a city centre appartment is better in the long term...

my guess with appts is that one can command higher rents but maybe not as much asset appreciation and that

houses would have higher capital appreciation but lower rents .

Maybe my analysis is wrong but trying to decide on which is the best as this investment is not something that I will be living in.

many thanks
 
There is no problem with renting in Tirellan, Renmore, Salthill. All well established areas. When I mentioned further out I was thinking of the new places in say Roscam etc. Have you looked at the rents for the different areas?
 
Yes Bronte,
I have looked at the rents in the different places on Daft but still hard to gauge if they are renting at quoted rents.

I looked at Roscam and seems a bit far out...rents advertised around 800 Eur

See many houses close to GMIT especially around Glasan (across the road from GMIT)...checked for rentals there and none available so guessing that is good..
 
It is peak season around the two colleges so I would not expect any properties to be available on the student market currently. You'll see a different story in May, also applies to say Cork but not so intensly.

Some of the properties for students are under the S50 scheme. Not sure if Glasan is that.

Did you intend on getting into the student market, I'd advise you totally against this. You've only maybe 9 months rent and are just looking for grief.

I haven't looked at rents in Galway for a while, but you'll easily get 700 in Tirellan, I doubt if you'd get 800 in Roscam. Not sure of the quality of the build in Roscam either.

Not sure if it still applies but the Galway advertiser used to be the place to find lettings, and it still is good for sales. O' Donnellan and Joyce in particular have a good reputation for their auctions.

Just noticed now that you mentioned management fees of 2K. That's a lot of bucks. I would try and stay away from any property that has management fees if at all possible. Particular those with expensive things like lifts. Also the high fees could be a sign that there is trouble with getting the fees paid by all the owners. Make sure you thoroughly check out the management company.
 

Thanks Bronte,

It makes sense what you are saying as regards current availability around the colleges and was trying to ascertain if student accommodation is really worth it and will take your advice.
Actually I went to see some student appts in the city and they needed some work and I definitely would not live in them and see that they will create too much hassle.

I have a 150 budget but don’t want to go any higher than 100K on appt.

Thanks
 
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