Proposed apartment purchase with spare cash. Good or bad idea ?

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Roro999

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Retired and looking at finding a home for cash rather than leaving it in a bank. Opportunity has come up in local thriving town to buy an apartment for €110k cash. Rent approx €900 p.m. or could rent possibly to Ukraine family and avail of €800 tax free for the immediate future. Management fees €1.5k
Income taxed at lower tax rate (or no tax for moment if renting to a Ukraine family)
Would the yield be considered very good ? Would I be mad to get into this when there is an exodus of landlords ?
 
Roro999 said:
an apartment for €110k cash. Rent approx €900 p.m.
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It depends on your overall financial circumstances of which we don't know.

But two obvious boxes are ticked: (a) you will pay tax on lower rate; (b) gross yield is 10% which is about as good as you'll get in Ireland.

Bear in mind you are at the bottom end of the rental market. So you get a good yield but will have a riskier class of tenants.
 
€900pm on an apartment worth €110k - that’s a gross yield of nearly 10%, which is excellent.

But make sure you do your homework - landlords aren’t leaving the market because yields are poor.

We would really need a better idea of your overall financial position before offering a view as to whether you should take on this opportunity.
 
Thanks for replies.
Retired couple aged 66 and 67.
Gross combined incomes €49k plus
Rental income€14k gross (house valued at €200k)
No mortgages PPR valued €450k.
No car loans
Household running costs €40k p.a
Spare cash of €150k
 
Are you buying with the existing tenant is situ? You may have to give them up to 224 days notice. If planning to avail of the 800euro Ukrainian income tax free.
 
Silversurfer said:
Yes it is not classed as income but a ‘accommodation recognition payment’ of €800 per month.
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There must be a fair amount of rentals stuck in RPZ with below market rent that would actually be better off after tax renting to Ukrainians for €800 a month. Myself included!!!
 
Thought that myself. Actually wondered why they would not rework the hap the same way as hap is constantly accused of pushing tents up.
 
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