We own our house in the country and since paying off the house we have saved 250k. I recently left my job and my wife is working bringing home about 4.5k after tax. We have decided to buy property(s) as investment and rent it out. The question is: should we buy 1 apartment in Dublin, in the likes of Citywest, Clondalkin, Tallaght, Balbriggan, or buy 2 apartments pretty much anywhere in the country. Rent yield is basically the same at between 7 to 9%. Our predicament rises from the fact that at some stage we’ll have a financial crash that’s way overdue and whenever that happens property in the country are the first to be hit and the last to recover, therefore maybe is Dublin the best option?? Be interesting to hear your views.
1 in Dublin or 2 in the country?
- Thread starter feuerbach
- Start date
nabthefool
New member
@feuerbach If you buy the houses as investments can you afford them to sit empty, need repairs etc. Maybe start by buying one house in the country and see how you enjoy being a landlord, you could end up doing it for 3 months and hate it.
@feuerbach I'd go two outside Dublin. Doesn't have to be the country. A note on the crash, if you are not borrowing to buy the properties then don't worry about it. If you don't need to liquidate your assets at ant point, it really doesn't matter whether they are worth 2 euro or 2 million euro, that's just on paper. Yes there might be a fall in rent but once it's in a decent area there will still be demand.
@feuerbach If there is a crash and prices plummet, then provided you are not leveraged, it shouldn't affect you anyway. Don't panic, just sit tight, keep taking in the rent, After a few years the market will rebound and prices will continue to go up over the long term, as they always have.
No borrowings is the key. I'm in the same position. Best investments I ever made. Nice safe, steady, rent roll coming in. Even when the crash does come, it may not affect residential housing as bad as other sectors. There is just so much demand that supply won't catch up for easily a decade.
No borrowings is the key. I'm in the same position. Best investments I ever made. Nice safe, steady, rent roll coming in. Even when the crash does come, it may not affect residential housing as bad as other sectors. There is just so much demand that supply won't catch up for easily a decade.
@feuerbach A city outside Dublin. Getting an average of 10% ROI or 7.5% after expenses (insurance, LPT, RTB, maintenance etc.) You won't get that return anywhere else. Ive got some stocks too but after brokers fees etc. The returns are not as good and its WAY more volatile.
@feuerbach I love how you say 'the country' when referring to other towns and cities, as if it's just all grass outside Dublin.
@feuerbach They problem though is that when I see 'the country', I'm not thinking of any of the other cities or their suburbs/satellite towns. It might make sense to buy an apartment in Cork City (for example) but I'm not going to suggest that is the options are 'Dublin' and 'the country'.
Thanks for reading my little rant
Thanks for reading my little rant
lbsure2163
New member
@feuerbach 2 rentals mitigate the risk of tenants not paying you (although you could also end up with 2 sets of tenants not paying you too)
killalljewishpeople2934
New member
@feuerbach "at some stage we’ll have a financial crash that’s way overdue"
I wouldn't be putting too much heed in this. Things might go into reverse for a bit, but theres no innate reason why things would crash - especially why Irish property would collapse. Irish property is quite reasonably priced by international standards.
I wouldn't be putting too much heed in this. Things might go into reverse for a bit, but theres no innate reason why things would crash - especially why Irish property would collapse. Irish property is quite reasonably priced by international standards.
@feuerbach It depends if you plan on managing it or not and how much maintenance you plan on doing..
paying a management company a months rent a year to manage the viewings and letting vs doing it yourself. but then your up and down to dublin to inspect & clean the place or let the cleaners in, show the property etc.
shower silicone wears and leaks.. who are you going to find & what will you pay for some one to do the 30 minute job of rip off the old silicone and put on new silicone? or you going to do that yourself and drive to the apartment in dublin do it yourself and only be allowed write off the 10 euro for the tube of silicone against tax. Diseal, tolls, parking etc will be at your own cost.
Financial crash wont hit propertry like the last time.. there is a shortage and will be for the next decade, very unliklely we will be seeing 50%-60% falls in value again and if you can afford to sit on it, the market will bounce back..
Also is your projected rental yields actually something you worked out or a google of what they are? are they before or after taxes? 7-9% looks great but if tax will half that then that might bring other investments into the equation as an alternative.
personally i would go with 1 down the country and see how you get on and look at possibly some investment or pension option for the rest & spread the risk.
paying a management company a months rent a year to manage the viewings and letting vs doing it yourself. but then your up and down to dublin to inspect & clean the place or let the cleaners in, show the property etc.
shower silicone wears and leaks.. who are you going to find & what will you pay for some one to do the 30 minute job of rip off the old silicone and put on new silicone? or you going to do that yourself and drive to the apartment in dublin do it yourself and only be allowed write off the 10 euro for the tube of silicone against tax. Diseal, tolls, parking etc will be at your own cost.
Financial crash wont hit propertry like the last time.. there is a shortage and will be for the next decade, very unliklely we will be seeing 50%-60% falls in value again and if you can afford to sit on it, the market will bounce back..
Also is your projected rental yields actually something you worked out or a google of what they are? are they before or after taxes? 7-9% looks great but if tax will half that then that might bring other investments into the equation as an alternative.
personally i would go with 1 down the country and see how you get on and look at possibly some investment or pension option for the rest & spread the risk.
@milomarco Very valid points here. Thank you 
@feuerbach No worries.
It is an investment so obviously ROI is important, but it isnt a hands off investment like a fund, or convienent maintenance like stocks where you sit down with the laptop, you will have to physically turn up and manage it or you will be paying someone to do those things for you which will significantly impact your ROI.
Also i would revisit the 2 apartments idea and maybe look at a house. I dispise the apartment maintenace fee idea, i think it a money for jam operation and only goes only one way in terms of costs and from what i have heard of them the sinking fund is always short. A house is probably more salaeble down the road if you need to but more maintenance.
It is an investment so obviously ROI is important, but it isnt a hands off investment like a fund, or convienent maintenance like stocks where you sit down with the laptop, you will have to physically turn up and manage it or you will be paying someone to do those things for you which will significantly impact your ROI.
Also i would revisit the 2 apartments idea and maybe look at a house. I dispise the apartment maintenace fee idea, i think it a money for jam operation and only goes only one way in terms of costs and from what i have heard of them the sinking fund is always short. A house is probably more salaeble down the road if you need to but more maintenance.
@feuerbach Are you going to put this in any sort of tax wrapper or just buy outright and get taxed via paye ?
How long do you intend to hold this for
What’s your alternative investment idea
How long do you intend to hold this for
What’s your alternative investment idea
@feuerbach What kind of tax wrapper is possible in this case ?