Buy to Let - Suitable areas

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Neilc78

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Just wondering, in peoples experience, what regions in your locality are suitable for buy to let. I am struggling to find an area where the rental income of the house would come close to paying for the mortgage required.
 
is it really a good time to be entering the buy to let market in any part of ireland ?
 
Maybe not right now but maybe a corner is turned in that house prices are going down and rental prices are said to be on the rise. I was just wondering are there any spots where the idea of buy to let is worthwhile at the moment.
 
you could always look on daft see what areas are getting big rents and then see what the cost of a place there is and work it out that way
 
gonk said:
This is mainly in response to rising interest rates. .
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I don't agree with this statement. If rents are going up it's to do with the lack of rental accomodation and what the renters will pay for the limited accomodation. Supply an demand.
 
DonKing said:
I don't agree with this statement. If rents are going up it's to do with the lack of rental accomodation and what the renters will pay for the limited accomodation. Supply an demand.
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Well it's chicken and egg isn't it? The fall in supply is due in large part to the reduced attractiveness of residential property investment as interest rises. Interest increases have reduced net yields and slowed if not halted capital appreciation. If investors leave the market as a result, supply will fall and rents will rise.
 
gonk said:
Well it's chicken and egg isn't it? The fall in supply is due in large part to the reduced attractiveness of residential property investment as interest rises. Interest increases have reduced net yields and slowed if not halted capital appreciation. If investors leave the market as a result, supply will fall and rents will rise.
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Yes I would agree that there is an indirect relationship. When responding to your previous post I was thinking of the notion that some landlords seem to have, that as interest rates go up they have a justifcation or right to pass this on to their tenants ie increase rents.
 
People can only pay what they can pay. If it reaches a point where its not possible to maintain the mortgage, then the properly will have to be sold. I'd say most landlords will sell long before that point though.,
 
Neilc78 said:
Just wondering, in peoples experience, what regions in your locality are suitable for buy to let. I am struggling to find an area where the rental income of the house would come close to paying for the mortgage required.
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What areas have you checked and what areas are you most intrested in?

There are properties out there with rental yeilds of 4% Gross. Is that the kind of figure you would settle for?

property cost 225,000E and the rental income is 9k p.a.
 
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