Our experience of being a small landlord is one I never want to go through again. We got the house back and it was thrashed. They never cleaned it once, smoked indoors, clearly had pets, and the estate agent I paid to run it for me - I might as well have done it myself. As it was a business, I found myself going into the higher tax rate as I was also holding down my job. Everyone in work thought I was minted. What they didn't see was the amount of hassle and money going out the window. Would I recommend it? I would say 'Yes......but with caution'. Know what you're walking into (literally) first.
The RTB are making a shambles of the whole situation, a landlord has no rights anymore. You can treat your tenants as well as you treat your own family, the tenant can at any time stop paying rent. The landlord goes to the RTB, it goes to adjudication, the tenant doesn't bother to turn up to the adjudication, but the RTB will still allow an appeal from the tenant, it is beyond me, it is beyond my sense of justice. I am giving up, what the hell is going on. I agree totally with your stance on investing after losing out in the Tiger years, but please bear in mind, as a landlord you have no rights over your own property as far as the RTB goes, take my bit of advice, bypass the RTB and head straight to a Solicitor.
What amazed me was not making an investment, but you mentioned earlier video an expectation of ‘1800 euro’ a month for such a small house in Cork county !!! Price sounded crazy for a non-city location.
Thanks for your videos Terry! Love them. I have since thought that investing in rental property is too risky, due to the RTB and being unable to remove tenants that refuse to pay rent. What was your thinking of buying your property to rent in Cork. Especially when your last tenant would not pay and you had to wait a year. Better vetting perhaps? Let is know. I invested in property in the past, but now, due to government interventions, I am hesitant in doing so. Thanks again! Shane.
It's the old sunk cost problem, but with two adjuncts/supplements: 1./ was the loss irredeemable (falling off a bike - is it rideable or ruined and are you in a wheel chair permanently now); 2./ was the cause by your own decision making or inattention or was it essentially out of the blue (falling off of a bike - a car accident catapults one vehicle into your bicycle lane and you ditched just in time, or you were stunting down the hill trying to jump the curb at the bottom).
The apartment wasn't big money in the scheme of things, but in . an investment instead of a personal home it's bad timing to jump in at the height of a bubble. Technically we are coming to the end of this financial cycle, boom bust cycles usually last 10 to 15 years. At present all is good tho in Ireland.
I agree Terry .You have look on your current investment and take the the decision based on the current economics and on its own merits .And not based on historical events or fears.
You need to ask yourself Terry how that 2007/8 crash caught you out. I lived through it in my late 30's and it was as clear as the nose on my face that a crash was coming. I was an MD on 200K in Dublin and couldn't easily afford the repayments on modest houses. =110% mortgages were common and exploding credit here plus all the shenanigans aroung CFD's and NINJA's in the US. I remember the story that sealed it for me, a bank issued a credit card in the family dogs name in the US! That's a true story! Some people are ever the optimist and that can be great socially but terrible financially. Are you confident you could spot a bubble now when the last one wiped you out?
Sure you've gained a lot of knowledge from your experience in the Celtic tiger years, and you know the ropes now. Looks like you're on to a winner with that place you bought in Cork
Issues with tenants mostly are created when a landlord does directly and careful pick who they are renting out to. Stick to some basic rules when picking tenants to assure you will have a high chance of continuous payment of rent. Never allow an agent manage property for you unless absolutely necessary.
If you are flush with cash and the right property comes up with a long term lease to local authority then maybe. PRTB , bad tenants, bad management company, cost of maintenance and insurance are negatives.
The famous quote by Escalente "Life is not about how many times you fall down. It's about how many times you get back up." We only ever hear the horror stories regarding tenancy problems; not paying rent, destroying the property. There are certainly far more people who do pay rent and respect the property than do not. If we focus on the negatives we will never achieve anything. We learn from our mistakes. We get back on the horse.
If you look at supply and demand, yes the upward tradjectory of Irish house prices looks assured. However, if you look at the market manipulation by the government which is design to have Irish house prices move in an upward direction continously, you can see why it is becoming an increasingly impossible tradjectory to sustain. No need to point out the various tactics deployed by the government to keep house prices rising but if we look at what might overwhelm their ability to rig the market in this way, I see two large icebergs ahead. The first is what Christine Legarde spoke about recently, ie a 1920s type depression taking shape (which she thinks the ECB can tackle with ease). The second is a Trump victory in the US and the possibility of large multinationals here moving their operations back to the US. If either of these cause multinationals to start pulling out of Ireland, their employees will default on their mortgages and the spectre of negative equity will return. This is the ultimate nightmare for our government. Less income to rig the housing market and a housing market that requires ever more rigging to sustain an upward tradjectory. The more prices fall, the more people will default. Will we be able to borrow another 200 billion like we did post 2008? Will the ECB go back to QE? What will that do to the value of the Euro on international markets? What about the quadrillion in debt on the world`s derivatives markets, do the vulture funds owe money or owed money they won`t get? How soon could all this happen? From what I am seeing, it could kick off very soon. Possibly this year.
One of the best pieces of information on the Internet. I am surprised that I am not hearing this information from any expert in the industry. The house prices are not driven by supply and demand. It is driven by crazy government policies like the help to buy scheme and shared equity scheme. Allowing foreign investors to buy residential property, lol. I don't understand why people believe there is a shortage of supply, which is the main driver for house prices.
Terry can you inform us, are you investing 100% of your own money into the property, or are you borrowing money through the various different methods available?
Great video thanks Terry! As a first time buyer, how would / could you justify paying a premium for a new build? We're looking at a new build, 4 bed detached in an estate, €405k but other, similar but slightly smaller second hand properties sell for about €320000. We much prefer the new build and the area, but is it really worth the difference?
More or less is the same for the new build and old build. The big factor here is the maintenance and running cost of an old gouse is much higher compared to.a.new house if built properly. The main issue is that the quality of the new build is poor. I am find it challenging to find builders with food reputation entering the Irish market for building homes.
I kept my rents very low I rented out a house in dublin in great condition, for 1050 euro Now getting wiped out with inflation. People like me are leaving the market, No government help Here
The only lesson you should have learned. Is that you should have fought tooth and nail to hang in there in 2008. The recovery was swift. I like your purchase. Its not an apartment . No property maintenance charges. My only criticism is you should have gone more modern. Maybe 10 years old. I would suggest , clean up the title , sell and buy something better. What you bought is too cheap to count as a serious property investment.
Fool ,me once shame on you …. Fool me twice same on me :) …. If you buy repossessed properties absolutely no luck will befall on you ! Best of luck with that purchase ❤❤❤
Our experience of being a small landlord is one I never want to go through again. We got the house back and it was thrashed. They never cleaned it once, smoked indoors, clearly had pets, and the estate agent I paid to run it for me - I might as well have done it myself. As it was a business, I found myself going into the higher tax rate as I was also holding down my job. Everyone in work thought I was minted. What they didn't see was the amount of hassle and money going out the window. Would I recommend it? I would say 'Yes......but with caution'. Know what you're walking into (literally) first.
Well said Terry
Every day is a school day but you can’t beat experience and maturity.
Keep up the videos.
The RTB are making a shambles of the whole situation, a landlord has no rights anymore. You can treat your tenants as well as you treat your own family, the tenant can at any time stop paying rent. The landlord goes to the RTB, it goes to adjudication, the tenant doesn't bother to turn up to the adjudication, but the RTB will still allow an appeal from the tenant, it is beyond me, it is beyond my sense of justice. I am giving up, what the hell is going on.
I agree totally with your stance on investing after losing out in the Tiger years, but please bear in mind, as a landlord you have no rights over your own property as far as the RTB goes, take my bit of advice, bypass the RTB and head straight to a Solicitor.
What amazed me was not making an investment, but you mentioned earlier video an expectation of ‘1800 euro’ a month for such a small house in Cork county !!! Price sounded crazy for a non-city location.
Thanks Terry . Good analogy.
Thanks for your videos Terry! Love them.
I have since thought that investing in rental property is too risky, due to the RTB and being unable to remove tenants that refuse to pay rent.
What was your thinking of buying your property to rent in Cork. Especially when your last tenant would not pay and you had to wait a year.
Better vetting perhaps? Let is know.
I invested in property in the past, but now, due to government interventions, I am hesitant in doing so.
Thanks again!
Shane.
It's the old sunk cost problem, but with two adjuncts/supplements: 1./ was the loss irredeemable (falling off a bike - is it rideable or ruined and are you in a wheel chair permanently now); 2./ was the cause by your own decision making or inattention or was it essentially out of the blue (falling off of a bike - a car accident catapults one vehicle into your bicycle lane and you ditched just in time, or you were stunting down the hill trying to jump the curb at the bottom).
Well said Terry some people don't want to see anyone getting on
Some people don’t want to see young people owning their own homes
I just watched your video on the new investment property. IMO it's perfect for renting. I wish you the best of luck with the property.
The apartment wasn't big money in the scheme of things, but in . an investment instead of a personal home it's bad timing to jump in at the height of a bubble.
Technically we are coming to the end of this financial cycle, boom bust cycles usually last 10 to 15 years.
At present all is good tho in Ireland.
Thanks for your videos, yes its a good time to invest in property but not over budget.
I agree Terry .You have look on your current investment and take the the decision based on the current economics and on its own merits .And not based on historical events or fears.
You need to ask yourself Terry how that 2007/8 crash caught you out. I lived through it in my late 30's and it was as clear as the nose on my face that a crash was coming. I was an MD on 200K in Dublin and couldn't easily afford the repayments on modest houses. =110% mortgages were common and exploding credit here plus all the shenanigans aroung CFD's and NINJA's in the US. I remember the story that sealed it for me, a bank issued a credit card in the family dogs name in the US! That's a true story! Some people are ever the optimist and that can be great socially but terrible financially. Are you confident you could spot a bubble now when the last one wiped you out?
Sure you've gained a lot of knowledge from your experience in the Celtic tiger years, and you know the ropes now. Looks like you're on to a winner with that place you bought in Cork
Issues with tenants mostly are created when a landlord does directly and careful pick who they are renting out to. Stick to some basic rules when picking tenants to assure you will have a high chance of continuous payment of rent. Never allow an agent manage property for you unless absolutely necessary.
If you are flush with cash and the right property comes up with a long term lease to local authority then maybe.
PRTB , bad tenants, bad management company, cost of maintenance and insurance are negatives.
The famous quote by Escalente "Life is not about how many times you fall down. It's about how many times you get back up." We only ever hear the horror stories regarding tenancy problems; not paying rent, destroying the property. There are certainly far more people who do pay rent and respect the property than do not. If we focus on the negatives we will never achieve anything. We learn from our mistakes. We get back on the horse.
I taught Rocky Balboa said that ;)
@@borderfox2 This is hilarious on many levels.....
A lot of Hard workers Still Haven’t Bounced Back since 2008 .
Get back up and Bull on .
I would continue to invest in property, unfortunately with the new rule's and 2% rule, a bad tenant could wipe you out
What’s the return on your investment? Better than a diversified stock market portfolio?
Oh the irony of the judge asking him that 😂
If you look at supply and demand, yes the upward tradjectory of Irish house prices looks assured. However, if you look at the market manipulation by the government which is design to have Irish house prices move in an upward direction continously, you can see why it is becoming an increasingly impossible tradjectory to sustain. No need to point out the various tactics deployed by the government to keep house prices rising but if we look at what might overwhelm their ability to rig the market in this way, I see two large icebergs ahead. The first is what Christine Legarde spoke about recently, ie a 1920s type depression taking shape (which she thinks the ECB can tackle with ease). The second is a Trump victory in the US and the possibility of large multinationals here moving their operations back to the US. If either of these cause multinationals to start pulling out of Ireland, their employees will default on their mortgages and the spectre of negative equity will return. This is the ultimate nightmare for our government. Less income to rig the housing market and a housing market that requires ever more rigging to sustain an upward tradjectory. The more prices fall, the more people will default. Will we be able to borrow another 200 billion like we did post 2008? Will the ECB go back to QE? What will that do to the value of the Euro on international markets? What about the quadrillion in debt on the world`s derivatives markets, do the vulture funds owe money or owed money they won`t get? How soon could all this happen? From what I am seeing, it could kick off very soon. Possibly this year.
One of the best pieces of information on the Internet. I am surprised that I am not hearing this information from any expert in the industry. The house prices are not driven by supply and demand. It is driven by crazy government policies like the help to buy scheme and shared equity scheme. Allowing foreign investors to buy residential property, lol. I don't understand why people believe there is a shortage of supply, which is the main driver for house prices.
Terry can you inform us, are you investing 100% of your own money into the property, or are you borrowing money through the various different methods available?
Great video thanks Terry! As a first time buyer, how would / could you justify paying a premium for a new build? We're looking at a new build, 4 bed detached in an estate, €405k but other, similar but slightly smaller second hand properties sell for about €320000.
We much prefer the new build and the area, but is it really worth the difference?
You'll pay tonnes of interest on that mortgage before it's paid off.
Don’t just look at the sale price, look at the total cost including life time borrowing costs and then compare.
More or less is the same for the new build and old build. The big factor here is the maintenance and running cost of an old gouse is much higher compared to.a.new house if built properly. The main issue is that the quality of the new build is poor. I am find it challenging to find builders with food reputation entering the Irish market for building homes.
I kept my rents very low I rented out a house in dublin in great condition, for 1050 euro
Now getting wiped out with inflation.
People like me are leaving the market,
No government help
Here
RTB will not be needed in the few years. There will be no landlords left in the market
Facebook apple google in 1949 😅
The only lesson you should have learned. Is that you should have fought tooth and nail to hang in there in 2008. The recovery was swift. I like your purchase. Its not an apartment . No property maintenance charges. My only criticism is you should have gone more modern. Maybe 10 years old. I would suggest , clean up the title , sell and buy something better. What you bought is too cheap to count as a serious property investment.
Fool ,me once shame on you …. Fool me twice same on me :) …. If you buy repossessed properties absolutely no luck will befall on you ! Best of luck with that purchase ❤❤❤
It's not what you're saying untrue . it's what you're saying that's ain't so.
I made more out of crypto than I did out of property in Ireland
@Keith-d7h shut up clown boy,your probably in your mams box room
Would you buy crypto ? Love to hear your thoughts.
No
IF the rich could hire the poor to to die for them, the poor would make a good living 😂