Repayment Capacity

One of the most important elements of applying for a mortgage is repayment capacity. The lenders will want reassurance that you can pay the monthly mortgage amount that you would be due to pay.

You can demonstrate repayment capacity in many ways, the main three would be, savings, rent or your current mortgage.

As an example, if you mortgage repayments are going to be 1500 per month, the lenders will want to see you paying this amount for at least 6 months prior to an application. One common mistake we have seen recently is clients who are saving 1500 at the start of a month and gradually withdrawing it as the month progresses. If you save 1500 in at the start of the month and finish the month with an increase of 500 in savings, you have only saved 500 euros that calendar month.

We can offer our tips and explain the best way to monitor this at any stage, please feel free to contact me at james.curd(at)yes.ie

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4 Economic Ways to Secure your Home

 

 

With COVID-19 still part of our daily life, people in Ireland are spending a lot of time at home. Because of the stay-at-home recommendations, many people are suddenly trying to find new ways of securing their homes. As compared to the past, smart home technology and artificial intelligence are changing the home security market. Regardless of the fancy models in currently in the market, there are some affordable and easy ways to secure your home. 

Secure your doors

Close to 40 percent of burglars enter a home through the front door. Because of this reason, always ensure that your exterior doors are properly inspected to know whether the hinges are protected or if the frames are strong enough. If the home you move to was occupied by someone else before, ensure that you change the locks so that any key previously used can be rendered useless. Lastly, you could install deadbolts, use a video doorbell, install smart locks or add a strike plate.

Lock the Windows

Windows are also entry points which can allow burglars gain access to …

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Commercial Real Estate Investment

 

Introduction

Any property can be a good investment. In this sense, commercial real estate is a property used solely to conduct business or generate income through renting or selling. This diverse group of properties includes a single store, warehouse, offices, shopping malls, hotels, apartments, vacant land, and warehouses.

Given the current population and economic growth trends in Ireland, many people are interested in buying and investing in commercial property. Moreover, emerging market cities are becoming increasingly concentrated among Ireland’s largest urban agglomerations, resulting in increased demand for commercial real estate.

 One thing to note is that before anyone decides to invest in the commercial market, it is vital to have a detailed understanding of the industry and all of its components. Moreover, the need for well-informed investment decisions is critical. When calculating appropriate returns and risks associated with a target asset and evaluating the potential contribution to property pricing of new market trends, commercial properties are the best way to invest.

Reasons to choose commercial real estate as a way of investing

Commercial real estate provides a plethora of …

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4 Ways to Invest In Apartment Buildings

 

It is obvious that investing in real estate is one of the best ways you can earn passive income and achieve financial freedom. However, making a decision to invest in apartment buildings needs you to consider various factors. Just like other types of real estate investment, there are various ways to get funding so that you can get started. The funding source depends on your level of investment, the amount of money you have, and the amount of time you want to spend. These are 4 best ways to invest in apartment buildings. 

Buy it yourself

This is the best way to do it. Despite the fact that this requires a lot of knowledge, capital, and time, it is the most rewarding method of investing in apartment buildings. As an investor, you will have the chance to make your own decisions and develop a good plan on how you need the investment to generate revenue. It is important to note that this method is best fit for those people who are ready to face psychological and financial demands required …

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How To Start a Rental Property Business?

 

Real estate is a challenging business, as obstacles can wipe out your profits if you are not careful. When planning to invest or starting a rental property business, selecting the suitable instruments for your rental property requires a lot of time, dedication, hard work, and strategic planning. This is especially true in the rental property management industry because owning a rental property is similar to walking on a road. Anything can happen; for instance, if the wind blows, you must maintain your balance and not fall apart, which will remain your responsibility throughout the journey.

Lessons on howstart a rental property business is similar to learning how to create almost any other company. As an investor, one must identify several vital elements to begin a good start.  These components and the systems and investors’ benchmarks are more successful with a proven plan for rental properties. Moreover, if you want to start a rental property business, there are several valuable lessons to learn from the experience. Meanwhile, here are some of the most critical steps to consider before planning to …

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5 Features that make a profitable Rental Property

Investing in a residential rental property can be a great and profitable way to boost your investment portfolio. However, real estate is a tough business. For this reason, it’s important to do detailed research on the pros and cons of real estate investing before buying your first property.

It is important to start your search for property before bringing an agent into the picture, as they may pressure you to an investment that is not best suited for you. During this preliminary research, you’ll want to narrow down several key characteristics you are looking for in your property, such as size, location and amenities. In this article, we will discuss 5 key features to look for to ensure that your real estate investment is a profitable one.

1. Know Your Neighborhood

The location of your property is one of the most important things to consider. Knowing which type of neighborhood you are investing in will determine the type of tenants you will attract, as well as your vacancy rates. For example, if your property is near a university, then you …

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Cuckoo Funds Shifting Buyers towards Renting

Long-term pension funds are at risk with the aging population and increases in the rental market. The aging population is going to dry up pension funds because there will not be enough younger people to payoff older generations pension funds. Additionally, the expanding rental market will cause long-term retirees having trouble sustaining a comfortable lifestyle. Renting can be a great solution in the short term if someone is young, temporary, etc. However, not owning a home and having your mortgage paid off when you reach retirement ages can cause a lot of stress.

Cuckoo funds are contributing to this problem by spending approximately €2 billion on buying thousands of apartments and still have about €6 billion left to invest in the housing market according to global real estate advisor CBRE. Many consider Dublin to be one of Europe’s top markets for large, global funds to invest in.

There has been a dramatic shift from investing in Ireland’s commercial to residential property. In the first half of 2019, about 40% of commercial property investment is now being used for the residential …

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Affordable Rental Properties are Hard to Come by

Rental properties have provided the people of Ireland different options when it comes to living situations. People that cannot secure mortgages for various reasons and therefore are unable to buy a home look into the rental market.

A new Simon Communities Study has found that over 90% of homes available for rent within Ireland are not affordable for people with state housing benefits. The study indicates that the government needs to monitor and strictly enforce rent pressure zones, including the 19 new zones announced today.

The most recent publication of the Locked Out of the Market report found that approximately 8% of properties available on the market to rent were within the housing assistance payment limits. That percentage is drastically smaller compared to the percentage of the population that is using housing assistant payments.

The study found some alarming information that the government needs to take under consideration. Only one property was found available to rent within the Rent Supplement or HAP limits across all of the study areas for a single person. Additionally, only two unites were available within …

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Institutional Investors Hurting First-Time Buyers

Big time investors in the housing market are affecting first time buyers and their ability to purchase homes. Large scale investors are buying lots of hundreds of houses at a time and renovating them and re-selling them for profit. Home buyers are feeling the pressure and are unable to find homes in their price range. Fianna Fáil is calling on the current government to investigate the current tax incentives for investors and believes that could be a way to make significant changes.

The Department of Finance has agreed to do a review on how much institutional investors pay in taxes. However, Department of Finance has already begun releasing statements defending their current stance on taxes. They acknowledged that institutional investors only make up a small proportion of the housing market. A small proportion still can affect hundreds to thousands of people. According to Savills Estate Agents, approximately 3,000 properties were purchased in blocks by institutional investors last year. Many homebuyers searching for homes contribute large investment funds to increasing difficulty in getting a house.

Nicola McCann and her partner from …

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Is Long-Term Renting Sustainable?

Lifelong renting is becoming increasingly popular within Ireland’s largest cities. Influential Cork developer, Michael O’Flynn, talked about instances when he heard of people suggesting that up to 50% of houses should be rented. O’Flynn heavily disagrees with this statement and suggests that ideas such as economic and pension polices should be reviewed.

O’Flynn most recently addressed this issue during his discussion at the Institute of Professional Auctioneers and Valuers (IPAV). He set out to prove that retirees could not sustain a long period of renting properties and instead should have a house paid off to retire in. He asked the audience, “There are currently five workers for every pensioner, but the projection is for this to drop to two workers for every retiree by 2050. Have we considered how that will impact on pension income?” The renting model is not affordable for many classes of people and can cause severe economic troubles down the road when savings begin to dry up. Renting can be a great alternative for people moving to new areas or students and young adults in the …

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