Buying Apartment

G

goalie

Guest
Folks,

We are looking at buying a 1bed appartment in Wiliam street Waterford city for €35k with sittitng tenant. This would be an ivestment for us as we already have our own house. I think its good value and we would just need a small loan so we could own it in two to three years.

What would people opinions be on it? Would it be a good area to sell in the future in 5-10 years? Would we make a profit if we were to sell it then..

Thanks.
 
Hard to say how much property will go back up considering that its still falling at the moment.
 
Bear in mind the costs associated with being a landlord...PRTB, NPPR, Household Charge, Tax etc..these can often mean that the it costs to be a landlord rather than being a net income.
 
A good idea before investing in a property in a particular area of the city would be to visit it at nightime to get a feel for the place. If you are first time landlord check with the local rental companies about the market. A property is not a bargain if you cannot get a return(rent) or if asset/area is not appreciating.
 
Is the annual rent multiplied by 14 greater than the purchase price ?
This is the 1st indication that the property passs the yield test.

Other factors

Management company issues
Is the property mortgageable
Is the neighbourhood ok
Does the property need work
Any anti social activity going on
Availability of parking
Common areas
 
So if I was to purchase a 2 bed apartment costing € 75,000 in a good location with an annual rent of € 6,600 x 14 = € 92,400 - this would likely make it a good purchase ?
Does the figure of 14 times the annual rent cover interest payments on the full 75k and all the other associated costs of being a landlord these days e.g 1 month in general goes to the management company. Are such charges inbuilt to this 14 times figure ?
Thanks
 
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