Buy to Let in Drumcondra or Inchicore

H

HandyManny

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Have the opportunity to buy two 2-bed apts, one in inchicore at 270 nr spar and 1 at 295 in drumcondra, both 2 beds but drumcondra more like 1.5 beds. It will be a buy to let. Broker says keep away from inchicore as no capital appreciation. This is first time for this, any and all advice would be appreciated? Also any ideas about rental potential in both areas? Tks.
 
HandyManny said:
Have the opportunity to buy two 2-bed apts, one in inchicore at 270 nr spar and 1 at 295 in drumcondra, both 2 beds but drumcondra more like 1.5 beds. It will be a buy to let. Broker says keep away from inchicore as no capital appreciation. This is first time for this, any and all advice would be appreciated? Also any ideas about rental potential in both areas? Tks.
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What yield is your net rental yield?
And do do you think it is enough compensation for the risks currently out there?
What will the LTV be?
 
Hi good questions and as said, new to this. Rent should cover mortgage, including empty periods, but don't know enough about other types of investments, that's why I posted, hoping for some feedback.
 
A quick look on Daft.ie shows 2 beds in both areas have asking prices in the region of 1200 to 1600. This is quite a big variance.

An Interest Only mortgage on 295K @ 5% would cost 1230 a month to service.
An Interest Only mortgage on 270K @ 5% would cost 1125 a month to service.

Unless you've sourced a mortgage rate lower than 5% or are prepared to place a substantial amount of cash against the mortgage keeping the LTV lower than 80% I don't see how you can have excess cash from the rental income once void periods, insurance and maintenance charges are accounted for (I'm assuming 1 month void and 1 months rent goes to charges).

Do your figures on projected rental income versus costs differ greatly from mine?
 
Hi Handy,I am familiar with the area,Own rental property there,whats the name of the apts,is it the tramyard?
 
Know it,area is good for letting,least it was five weeks ago,when I let one not far from there,there is no cap appreciation,and wont be for years,never the less you seem to have a good price,and no one rings a bell either at the top of the market or at he bottom.
There are a lot of properties for rent at the moment,a lot are just parked there while their owners pray for a sudden halt to the price correction and for prices to go suddenly back through the stratosphere.
Wait for the Daft report on Irish rental market due in about three weeks before you do any thing.
I have somewhere an old brochure on that lace from the peak 2007 will look for it,does it have parking??
 
Cannot find brochure,The tramyard,not dissimilar was 370k at peak for similar property,if memory is correct,so it is not a bad price.If your in it or the long haul 10 yrs plus and you are not levered to the hilt or borrowing above what monthly payments will be ie it washes its own face,and you have taken account of voids,Tax management fees,wear and tear on furnishings etc infinitum ie you have done your homework,you should be ok,its a hugely risky time though,rents are a bit soft due to a vol of properties to rent,so know that,"be fearful when others are greedy,and greedy when others are fearful" quote Warren Buffet,Best of luck though with what ever you decide.
 
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