time to get out of residential property investment

Frank

Frequent Poster
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1,648
got a letter from an investment place about my rented apt.
The have units in the same complex looking for more.

owe 155k tracker
on daft looks to be about 220
they reckon 200k as the rent is relatively low.

I am getting 1100 a month they reckon 1700 is the rate. I am happy with tenants

Bought the apt at the top for 270 so no CGT

Also have a house rented
bought for 180
worth about 220
owe 185 interest only till 2027

Thinking sell both and with no overall cgt across the 2 and cut my mortgage on family home in half

I know to sell the house I will need to give at least 7 to 8 months notice although it appears the CGT loss carries from the apt if I go that way.

What am I missing?
 

Brendan Burgess

Founder
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40,281
Why would you need to give notice if an investment company wants to buy the apartment?

They might has well have a happy tenant. They can't raise the rent anyway.

Anyway, if you have a cheap tracker, this is a great investment.

Rent: €13k
Interest about €1k
Profit before expenses: €12k

If you have a good tenant, it's a great investment.

Would your tenant be interested in buying it if you do sell it?

Brendan
 

BourbonWithIce

Registered User
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53
I think there's going to be a lot of this. Small landlords selling up leaving the market. Government interference is driving them.out.
 

Ceist Beag

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Investment company are looking to tempt you into a cheap price for them. I don't see any reason why you would sell here personally. You would walk away with very little to show for your investment if you sold at €200K. If at all possible it would make sense to hold on to it until closer to 2027 until the interest only is running out, then re-evaluate your options.
 

NoRegretsCoyote

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1,318
A good tenant is valuable, but not worth 35% below market rate.

Whatever you do, you should raise the rent by the allowed 4% pa every year. You are damaging the resale value of the apartment by doing otherwise. By the looks of it most potential purchasers will be landlords and they are limited by the current rent charged.
 

Frank

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they offered 180 because the rent is so low, so that is the end of that

even at 4% a year I will always be a mile behind and falling further behind each year.

The fairness of rent control continues to screw me.

noted on selling the apt first though.
 

dino

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130
I'm in a similar situation. Two rental properties. I closed the sale on one last Friday. Sold for €230k and I'll pocket around €45K out of it. It was on a tracker for years but I also had a very expensive variable rate equity release. Got caught on low rent and now in an RPZ. The house always cost me silly money so it was time to get out. Overall, I made a capital loss on it so I sold it first. Gave 7 months notice to tenant in my other rental property and hope to sell that later this year.
The rental market is all geared towards the big players and it no longer makes sense to be a private landlord.
 

Frank

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1,648
Noted Vanessa

new twist
Tenants in the apt have given there notice to quit as they are buying somewhere themselves.
shocker tenant wants to give me 1/4 of the notice unless they need another month, then half :)
I know Covid has made this a new worst time to sell but hopefully this won't last forever

The letting agent is keen to get it back on the market.
I am very tempted by the empty clear apt and opportunity to sell

Low rent in a RPZ so same as original post still applies
Opinions please
 

llgon

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566
even at 4% a year I will always be a mile behind and falling further behind each year.
This was true a month ago but it has probably changed now. Rents are likely to drop in the next 6-12 months so if you raise yours by the amount allowed you might not be so far behind, provided RPZ rules aren't changed. How long is it since the last rent review?
 
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