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Calculating Your Waterford Buy-to-Let Return

A two-minute read to help you quickly determine the return on a buy-to-let property in Waterford.

If you’re looking for a property to rent out, it’s important to understand the numbers involved. You may have inherited a property and are thinking of letting it. Use the information here to identify if that is a prudent thing to do or if the capital from selling the property could be better invested.

Find the numbers

The simplest way to work out your gross return on a rental is to estimate some numbers. You can have a browse on the property portals (such as and MyHome) to get a vague sense of what properties in your range sell for and let for. These figures change across the country so it’s important to start with your own research (and not to overlook Rent Pressure Zones and their effect on rents achievable).

Quick and easy

Here’s a simple calculation to get you the basic overview. Let’s use an example of a €150,000 buy-to-let property that rents out for €1,000 a month.

€1,000 x 12 (months in a year) = €12,000 p.a.

Divide 12,000 by the purchase price of €150,000 = 8%.

For some investors, an 8% gross yield would be sufficient. Others look for higher but it’s all rather area dependent. Here in Waterford, we normally suggest looking to between 8 and 10%.

Deduct your deductions

buy-to-let how to calculate the return liberty blue estate agents

We’ve worked out your gross figures on your buy-to-let. But it’s the net figures that are the ‘money in your pocket’ numbers. To work these out, you’ll need to employ a little more guesswork. Better still, ask a local property expert, like us, who deals with these things, day in, day out. Then you’ll be closer to an accurate estimate. The figures you need are:

  • Solicitors’ costs (if you’re purchasing a property)
  • Landlords’ insurance
  • General property maintenance
  • Agency fees
  • End of tenancy cleaning costs

These can be off-set against your income for tax purposes.

Taxes, taxes, taxes

It’s reasonably straightforward to submit your tax returns yourself. They need to be done annually and submitted by the following January. It’s recommended though to use an accountant. They will be up to date with all the latest options open to you. Not only that, they can often help in other areas, like looking at your pension or investment options.

For buy-to-let investment opportunities in Waterford, get in touch with us on 051 85 81 82. Our team can help you consider the market and the best options out there for you. We’re here to help.


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