To invest or not?

[larry1]

Help please! Looking to invest in some form or property.. normal or section 23 but as usual get cold feet when it comes to taking plunge

I am a joe soap employee with equity of €400k im my principal residence and another €200k in an investment prop i have with 4 others. I am currently having to pay approx €2500 per annum tax on the invest prop and am eager to offset it. Have a offer to buy a sec 23 in Roscommom .. €195k incl stamp with a guranteed rent of €500/mnth. Also looking at a Dub property ( no section ) for €440 incl stamp approx rent €1100

Quandry is:

Section 23: Do I borrow it all? Capital appreciation is historically very low on this type of prop but I will only have a v small shortfall in repayments. Risky?

Dublin prop: 20K deposit req. interest only mortgage with shortfall of 500/mnth on repayments but capital would be much much better. Will be able to offset a % of the shortfall through tax and receipts. Do I take the risk now and reap benefits later? Any other way of decreasing shortfall?

I am real novice with a very basic understanding of tax etc so forgive me if i have come across a amateur but I really want to take the leap

Any feedback really appreciated

 

[nt00deep]

Not going to advise on whether to invest or not, but in considering options, don't forget the booming small-medium sized towns.

I can name one town where between the 7 estate agents you would be lucky to come out with a handful of rentable properties and the demand is huge, driven from retail and commercial growth locally. You don't need me to tell you what that is doing to rents.

In looking at interest-only versus full repayment method, the rents are coming in at midway between the two. So small and manageable shortfall if going with repayment option, and small yet useful surplus if going interest only.

Don't limit your choice to city and section properties.

 

[markowitzman]

nt00deep you devil go on and name the town!
Would go dublin all things being equal over a section property
loss on dublin offsetable against gain elsewhere but dublin better growth potential than rural section.
How long rent gaurenteed?