Friday 19 October 2018

The Investor: 'I would like to buy in Wexford but I'm worried about rental yield there'

Budget: Between €100k and €300k

Wexford man Shane McGinley is currently living in Dubai
Wexford man Shane McGinley is currently living in Dubai

Encouraged by friends in Dubai who have bought investment properties in Ireland over the last few years, journalist Shane McGinley is hoping to follow suit and snap up an investment of his own later this year.

"Ideally, I'd like to make a nice profit from it every month, which would cover the mortgage and help towards the rent in Dubai, which is very high," says Shane.

The 39-year-old from Wexford, who works as an editor at Thomson Reuters, has been living in Dubai since 2008 - when lack of full-time media opportunities forced him to look outside Ireland for employment. He currently rents a two-bed apartment in the Downtown area, just opposite the Burj Khalifa and The Dubai Mall, and has just renewed the lease for another year.

For between €100,000 and €150,000, Shane reckons he could get a decent property in Wexford but would have to push the budget up to nearer €300,000 if he decides on Dublin.

"The plan is to buy a terraced house in Wexford town or apartment along the quay, or else a two-bed apartment in Dublin within walking distance of the city and its amenities."

While working tax-free in the Middle East has afforded him the means to make such an investment, the reality of living so far away has created its own challenges when it comes to knowing exactly where and what to buy.

"I'm from Wexford so know what would be considered good value and a good area. I also have some family friends who work in real estate in Wexford so I would feel more secure buying there. However, I'm concerned about potential rental yield and income from a property there.

"Dublin is the most obvious choice, but the capital outlay is much higher, plus I don't know where would be considered a good investment as there is so much choice. I have read a lot about the shortage of student accommodation so it would make sense to buy near one of the universities, but would that give a high enough yield? Plus, students don't always make the best tenants.

"Another option would be to invest in a property fund," says Shane.

Whatever investment decision he eventually makes, his hopes for buying remain the same: to make as much money as possible.

"My worst nightmare would be to buy something badly built and poorly maintained. You hear so many horror stories. Or end up in negative equity.

"It's a landlord's market now, but for how long?"

Irish Independent

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