In terms of price, vacant possession is important. But the value of a rented property might also depend on the fact that the renters left on his own accord or was issued a NOT. In my apartment block, properties that were able to fetch market price rentals sold for 15-20k more than the others.Price: establishing a lease surrenders the right to vacant possession on sale. Typically that will devalue your asset by anywhere from around 15% if it is a modern flat in central Dublin to maybe 50% for a house in the suburbs or rural setting. Unless you are sure you will not want to, or need to sell that asset in the next 20 years that is a very significant risk.
That is a key point. Most of what is sold by landlords leaves the PRS. The Owen Reilly report made that point. 61% of his sellers in Dublin 4 and 6 and the docklands are landlords, 10% of his buyers are landlords (that presumably includes those buying Dublin 'pads' or places for student children).Also my agent who sold the unit told me there would be no investor buyers and there weren’t.
I agree. However, as said above, anything sold to LL command a higher price if rent reset is possible. I was surprised to see an apartment sold in excess of 20k above the highest price before in the development (which was already sold at a premium as never rented). This property was put for rent quickly.Most of what is sold by landlords leaves the PRS.