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walktothewater

Irish Times - Property

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http://www.ireland.com/newspaper/property/...ORTHTHE_02.html

Edel reckons that, "the price seems too good to be true", and that it's "likely to appeal to investors who are looking at the long term dividends rather than at rental return"

no kidding

€585k + 7.5% stamp duty = €629k

rent would be €1.5k/mth, max of €18k/yr less say approx 10% for voids, maintenance etc, say roughly €16k annual rental income.

So that's a yield of 16/629=2.5%.... hmm,

no thanks Edel, I'll continue renting by nice terrace house (cheap, central, grateful landlord) and keep my money in gold, mining, natgas and short-term canadian bonds, thanks all the same... 2.5%? I made that in Dec/Jan alone....

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http://www.ireland.com/newspaper/property/...ORTHTHE_02.html

Edel reckons that, "the price seems too good to be true", and that it's "likely to appeal to investors who are looking at the long term dividends rather than at rental return"

no kidding

€585k + 7.5% stamp duty = €629k

rent would be €1.5k/mth, max of €18k/yr less say approx 10% for voids, maintenance etc, say roughly €16k annual rental income.

So that's a yield of 16/629=2.5%.... hmm,

no thanks Edel, I'll continue renting by nice terrace house (cheap, central, grateful landlord) and keep my money in gold, mining, natgas and short-term canadian bonds, thanks all the same... 2.5%? I made that in Dec/Jan alone....

Many investors are thinking the same and that is why the BTL market died. Why risk at the top of the market for a 2.5% return when commodities and mining are returning huge amounts. BTW UKCoal is soaring--a great "miner" with Chinese interest and new tech to overcome pollution and liquify coal into oil. I have made 10% in a week and have ZERO interest in BTL.

Edited by Realistbear

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Many investors are thinking the same and that is why the BTL market died. Why risk at the top of the market for a 2.5% return when commodities and mining are returning huge amounts. BTW UKCoal is soaring--a great "miner" with Chinese interest and new tech to overcome pollution and liquify coal into oil. I have made 10% in a week and have ZERO interest in BTL.

If only the BTL market in Ireland was dying - far from it.

Investors are not buying for 2.5% yield, they want the 10%+pa capital growth which is seen as guaranteed!!! And, with rents not rising, the yield gets lower and lower, but nobody cares.

It's a totally mad market. But that doesn't stop buyers borrowing like mad to try to keep up with it. :blink:

EDIT: Edel Morgan has become our very own Henry Blodget. (chest fills with pride)

Edited by Flash

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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