What you need to know before investing in property in Ireland

Investing in your first property? This guide will give you tips and tricks for property investing in Ireland. We look at getting started, landlord resources and in the final ten points how to add value to your property.

How to get started investing in property in Ireland

1. Start learning property investing basics

YouTuber Shane Fleming of Fleming Real Estate does a good job of breaking down property investing for beginners.

2. Understand your potential rental yield

Your potential rental yield (or how much income you can generate from your property) will be the basis for many decisions you make as a property investor. Have a good understanding of how much money a potential investment property could generate now and in the future. Mark Solon of Symmetry Financial also looks at this here.

3. Choose your first investment wisely

How should you invest your first 100k? The Smart Money Series on property investing breaks down the best ways to grow an initial investment of 100k. Darren Britt explains in This Smart Money post how to turn an urban fixer-upper into an investment property.

4. Scope out potential Irish properties on DAFT

Finding the right property to invest in is challenging. Use daft.ie to explore almost any available property in Ireland.

5. Investing in multi-unit properties

Multi-unit properties are also appealing for first-time investors, but are they right for you? This Smart Money post explains how to manage a multi-unit property as a beginner.

6. DAFT Reports provide quarterly market analysis

Real estate investors in Ireland should never miss The Daft Reports - quarterly market analysis that gives you all you need to know about trends in Irish property investing.

7. Explore your mortgage options

You may be eligible for a mortgage to help finance your investment property. Understand if you qualify for mortgage by reviewing some of the criteria outlined here.

8. Join property investing groups for support

Connect with property investors from all over Ireland through virtual networking groups such as Property Investors Ireland.

9. Check your credit history

Check your credit history the Central Credit Register before you apply for a mortgage.

10. Consider tenanted properties

Start earning rental income right away by purchasing a property with tenants in situ by working with Vesta. This is a UK site but still worth a look and an interesting concept. With Vesta you buy a a property with tenants in situ From first-time investors to experienced portfolio landlords, Vesta say they’ve got a wide range of single properties, blocks and portfolios to cater for all investors. They also have a couple of useful analysis tools.

Resources for landlords in Ireland

1. Join IPOA

The Irish Property Owners Association is a membership organization that represents and supports Ireland’s landlords.

2. Learn about Landlord Rights and Obligations in Ireland

Landlords and tenants have their own sets of rights and responsibilities. Landlords should be very familiar with these laws before they rent out their properties.

3. Legal tips for landlords

Being a landlord is a major legal responsibility, and you’ll need to follow the law to protect yourself and your investments.

4. Working with HAP

Ireland’s Housing Assistance Payment provides public housing support and subsidized rental agreements for families who qualify for social housing support. Get familiar with how the program works and what your responsibilities as a landlord are.

5. Ending a tenancy with the RTB

Follow rules established by the Residential Tenancies Board if you need to end a tenancy early.

6. Be prepared for taxes

Be ready to face a tax liability as a landlord, and be sure to complete your annual tax return. This post by Fenero does a good job of explaining taxes for landlords.

7. Don’t forget the BER certificate

Building Energy Rating certificates are required by law when renting a home. The certificate rates the home’s energy performance.

8. Get a broader understanding of the market with CBRE Research

Property giant CBRE publishes regular reports on different property sectors around Ireland. It can be a useful tool whether you’re purchasing your first property or investing in property companies.

9. Get a Property Owners insurance policy

Property owners need insurance to protect the building’s value if it’s damaged. The IPOA breaks down what your Property Owners insurance policy should cover.

10. Think outside the box

Codie Sanches of Contrarian Thinking offers lots of creative property investment advice so you never get bored being a landlord. While a US blog, she has some interesting concepts and ideas for investing, for example her article on RV parks as a business is interesting reading. Lot’s of her concepts while US based could be adapted for Ireland.

How to transform a property

Now that you’ve done your research about what it takes to be a landlord, it’s time to get to work. Your first property will probably need some improvements. Here’s a couple of often very cost effective solutions to improve your property.

1. For builders: Self Build Ireland

For anyone interested in building their own home, SB Ireland is a great spot to get information and inspiration from other Irish builders.

2. For low budgets and small spaces, check out Gaff Interiors

If you’re working on a tight budget or transforming smaller properties, Gaff Interiors offers plenty of ideas for maximising your space and money.

3. Make rentals more liveable: House Beautiful

Learn how to maximise all of the space in your rental so it’s functional for tenants with House Beautiful.

4. Fix and flip Cheap Irish Houses

It’s not for every type of property investor, but flipping older properties can be very rewarding. Cheap Irish Houses scopes out older, rural properties as they hit the market.

5. DIY inspiration: Frugal Person Finance

Follow along as a “frugal Irish guy” shares his journey to financial freedom by living a minimalist lifestyle, making strategic property investments, and doing his own renovations. Check out Frugal Person Finance here.

6. Choose calming, neutral colours

Transform your rental with a coat of fresh paint in a warm, neutral colour that offers more coziness than a cold white paint.

7. Prioritize energy efficiency

If your rental was built before 2006, you could qualify for a grant from The Sustainable Energy Authority of Ireland. The grants help landlords improve energy efficiency and boost BER ratings.

8. Opt for pet-friendly finishes

Choose flooring materials that will withstand a lot of wear and tear - including pets. Also, don’t include toxic plants in your landscaping. This article highlights some overall features to include in your property to limit wear and tear such as kitchen splash backs, avoiding carpet and installing door stoppers.

9. Maximising space

There are lots of ways to maximise what is sometimes dead space. If you don’t have the room for a home office for instance, then you could create a nook to get your work done. A DIY wall mounted desks could be the perfect space-saving solution in this nook.

10. Clear a place for outdoor entertaining

Clearing up an outdoor space can add to the perceived size and space of a property. There are lot's of techniques and tricks for making the most out of a small outdoor space. Pinterest as usual has lots of great inspiration for this.