galway_blow_in
Registered User
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1 . commercial unit in balbriggan , tennant is a hairdresser nearly six years into a ten year lease with an annual rent of 12 k NET of rates , management fees etc , purchase price is 105 k + vat + stamp duty @ 6%
2. two bed 700 square feet house in limerick city , vacant possession , were i to buy i would hope to lease to the local authority for a minimum ten year period ( no the HAP scheme ), under such an agreement , you receive 80% of market rate but have no dealings with tenants who are chosen by local authority , property tax and home insurance is the responsibility of house owner however as is structural maintaineance , replacement of white goods or beds would be responsability of the local authority , cost of house = 80 k all in including stamp duty and other associated costs
yield on both would be about the same , circa 8% NET
i suppose what im wondering is if commercial property is any less risky if you are not the one having to deal with residential tenants ? , i already own a commercial property and ive collected 18 k since august 2016 and never had to lift a finger on an industrial retail unit in the mid west which cost me 121 k all in
that said while businesses can close or relocate with potential significant vacant periods , people always need somewhere to live
please no advice about how property is inherently high risk and how lack of diversification renders it a bad idea full stop , i just want to straight up try and evaluate commercial v residential within the context of property investment where the goal is income creation
2. two bed 700 square feet house in limerick city , vacant possession , were i to buy i would hope to lease to the local authority for a minimum ten year period ( no the HAP scheme ), under such an agreement , you receive 80% of market rate but have no dealings with tenants who are chosen by local authority , property tax and home insurance is the responsibility of house owner however as is structural maintaineance , replacement of white goods or beds would be responsability of the local authority , cost of house = 80 k all in including stamp duty and other associated costs
yield on both would be about the same , circa 8% NET
i suppose what im wondering is if commercial property is any less risky if you are not the one having to deal with residential tenants ? , i already own a commercial property and ive collected 18 k since august 2016 and never had to lift a finger on an industrial retail unit in the mid west which cost me 121 k all in
that said while businesses can close or relocate with potential significant vacant periods , people always need somewhere to live
please no advice about how property is inherently high risk and how lack of diversification renders it a bad idea full stop , i just want to straight up try and evaluate commercial v residential within the context of property investment where the goal is income creation
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