What key numbers should considering when investing in a 2 bedroom apartment in Dublin city?
We’ve done the research on the best locations in Dublin and highlighted the important developments that have successfully worked in the past. All that is required is analyse the key numbers to ensure the returns meet requirements.
For example, lets say we wanted to buy a 2 bedroom apartment in the IFSC, Dublin for a purchase price of €350,000. The acquisition costs would be as follows:
Government Stamp duty:
For residential property, it is calculated at 1% of the purchase price up to €1m.
Legal & Ownership Registration fees:
Some solicitors will charge a flat fee while others will charge a percentage of the house price, usually around 1% or 2%. We have budgeted 1.5% plus vat. This would include the solicitors fees and any extra small land registration charges. Note, we do not use a notary in Ireland. The buyer will have a solicitor and the seller will have their own solicitor.
Independent Building Surveyor:
Surveyor’s fees associated with this type of property are typically based on the time it takes to provide the service. Chartered building surveyors do not typically estimate their fee as a percentage of the property value. They factor in travel time to and from the property, the number of hours spent on the site, and the time spent drafting and finalising the report. It is not unreasonable therefore to estimate €1,500 plus vat for a 2 bedroom apartment.
No fit-out budget or capex is included in the property purchase above. Tenants will typically rent an apartment fully furnished. The apartment will always include kitchens, bathrooms and laminate hardwood floors but investors will need to budget approx. between €5,000 – €10,000 for furniture and some fittings
Broker & Professional Fee’s:
- 6% of the purchase price plus VAT. Included in this amount is the Spire Fee.
- Irish Property Company (“PropCo”) set-up including a PropCo bank account set-up
- Appointment of a resident legal representative (General Manager) of PropCo in Ireland.
- Transfer shares in PropCo. to the new shareholder (the investor)
- Preparing a short-list of previewed & qualified property offers to suit investor criteria
- Tailored Investment Analysis of each property opportunity
- Negotiate purchase price and terms and prepare 5yr investment ROI forecast.
- Co-ordination and review of a technical building report/survey.
- Point of contact for all independent professionals including: Planning and regulations, Property & tenant, Technical property survey, Legal conveyancing, Financial and tax advisors
- Liaise with Prop Co lawyers to ensure legal takeover of the property.
- All local 3rd party property agent fees
- Ensure all Irish Government Stamp Duty and other third-party costs and fees are paid
Charged at a rate of 23% but is not payable on stamp duty.
If you are thinking of investing in property as a source of alternative income,
why not contact us today to discuss your requirements in more detail?
Phone: +353 86 325 0048 I Email: firstname.lastname@example.org
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