Every time a good quality property becomes available on the sales market I’m inundated with interested parties. There’s a huge amount of investors out there looking for a good quality investment and at this moment there’s still great value to be had in the property market.
You can buy a good quality 2 bedroom apartment like the one we recently sold in the Courtyard on Summerhill Terrace for €70,000 which will easily rent for around €675 per month, that’s €8,200 a year gross return. This represents an exceptional gross return of 11.5%, obviously you need to account for service charges, insurance, maintenance, letting agent fees and tax on the rentable income. Even with this in mind you could achieve an excellent return, especially when compared with the paltry 1% currently being offered in deposit and savings accounts, which are subject to dirt tax.
With property prices also on the rise not only do you achieve a great yearly return but it’s also quiet likely that you’ll receive a capital gain if you decide to sell the property in the future.
The lack of investment property for sale is driving prices up, apartments that were selling for €60,000 this time last year are now achieving €70,000 or more, depending on their location and rental return. This may lead you to believe that the value is no longer there in the market. However there is also a lack of good quality rental property currently available and this is also driving rents upwards, the latest daft report advised that rents in Waterford rose by 11% in the last year. While this may not match up to the 17% increase in the sale price given in the example above it goes someway to help ensure that investing in property at the moment is still a prudent thing to do.
As with any investment it’s best to seek advice from those in the know and at Liberty Blue Estate Agents we’d love to advise you as to where is best to invest your hard earned cash.
We’ve have a great weekly newsletter to keep potential buyers and renters informed and you can sign up to these by clicking on the links below.
Commercial newsletter/listings:- Sign up here
Residential sales newsletter/listings:- sign up here
Or of course you can head over to our current property listings right now by clicking here
What is the 'Right Mortgage'? Tara Kelly, Mortgage Manager at the Mortgage Shop, shared a few crucial pieces of advice
Welcome to Waterford Property Watch, the sixth in our series of in-depth discussions on what's happening in the Waterford property
Welcome to Waterford Property Watch, the eighth in our series of in-depth discussions on what's happening in the local property