PROPERTY
Whether you’re just starting or expanding your rental portfolio, there is a lot to consider when you take on an investment property. Here at GMC Mortgages we understand property investment and are committed to sustainable investing and innovative financial solutions for clients looking for buy to let mortgages.
Investing in property is an increasingly popular way of investing for the future. Renting out property has never been easier in Ireland thanks to high rental demands and services such as Airbnb. The process of buying a property in Ireland is familiar to a lot of people and this familiarity makes the decision to invest somewhat easier. Many of the things that should be taken into account when buying a property for use as your own home also apply in the case of buying to let. However there are some other things that you should consider (see below). We can help you with obtaining a buy to let mortgage, which is a loan that is specifically designed to finance an investment property.
Buy to let is popular as an investment technique as it is simple to understand. There is a physical asset giving many people reassurance and there is an ability to leverage the investment with buy to let mortgages. In addition, you can choose to manage the property yourself, which, while involving an investment of time, will reduce costs and improve the “bottom line” of your investment.
Buy to let mortgages in Ireland generally involve investing in a property with an expectation of capital growth, with the rental income helping cover the mortgage costs and any other outgoings associated with the property. With rental prices throughout Ireland quite high, particularly in major cities such as Dublin, Cork, Limerick and Galway, investment property over an extended period of time can be a very successful investment and an asset that easily fits into your long-term financial planning.
Once you buy property to let out, you by definition become a landlord. You should be aware of the implications of this. For a start, if your property is located in the Republic of Ireland, you need to register as a landlord with the local authorities. Furthermore, being a landlord means managing the letting process, potentially taking calls and complaints from tenants to solve problems that may occur with the property, and monitoring incoming rent payments as they fall due. Alternatively, you can hire a property management company to take care of these things, helping take the hassle out of becoming a landlord.
As a buy to let investor, you will face many of the same costs as you would if you were buying your own home. However, apart from the standard costs such as decorating, furnishings and solicitors costs, you should budget for additional costs such as management fees (if you intend to have an agent take care of lettings) and also budget for potential vacant periods during which you will receive no rent.
- Where is the property and can I attend personally if there is a problem?
- Am I prepared to pay an agent to take care of the lettings and ongoing management and if not, am I prepared to do it myself?
- Have I prepared a detailed list of income vs expenditure, and am I prepared to fund any shortfalls that may arise from time to time?
- How would my income and expenditure calculationsbe affected if interest rates rose significantly and/or I could not fund tenants?
- To what standard is the property finished and what else do I need to buy to make it “lettable”, e.g. kitchen, white goods, painting, flooring?
- Is the property in an area that (a) will attract tenants easily and (b) is likely to appreciate at least as much if not more than the market as a whole?
Apply
Online
Our mortgage team will thoroughly assess your application and any supporting documents to build up an overall picture of how you manage your finances. We want you to take out a mortgage with us but need to make sure you don’t overstretch yourself financially, so this is an important part of the mortgage application process.
Apply
Online
Our mortgage team will thoroughly assess your application and any supporting documents to build up an overall picture of how you manage your finances. We want you to take out a mortgage with us but need to make sure you don’t overstretch yourself financially, so this is an important part of the mortgage application process.