Costs to consider when buying a rental property

Lending criteria, terms and conditions apply. Over 18s only and Republic of Ireland residents only. Mortgaged property must be in Republic of Ireland. Security, buildings insurance and life cover required.

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Upfront costs

Ongoing costs

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Upfront costs

So you think you’ve managed to get together a deposit. That’s great but don’t forget there may be some other costs that you’ll need to budget for. There are no fixed rules about these extra costs – how much you pay all depends on the house or flat you’re buying, where you live, your mortgage deal etc. This isn’t full list of all the costs that could be involved but it’s starting point to help you work out what you can realistically afford.

Stamp Duty Close

Likely to be the biggest expense you’ll need to pay other than your deposit. Stamp Duty is a tax you have to pay if you buy a property or land. The amount you need to pay depends on the purchase price of the house.

Survey Costs Close

This is charged by a surveyor to check for structural defects on the property. Depending on what type of survey you have done, the cost will vary.

Property valuation Close

Sometimes the surveyor may recommend that the sale price is higher than the actual property value, and downgrades the valuation. This can be quite common and may be down to many different factors including over pricing due to market conditions or structural issues with the property.

We don’t want you to buy a property that’s been over-valued, so we’ll contact you to discuss the different options open to you. These may include asking the seller to reduce their price or you increasing your deposit so you need a smaller mortgage. Or you may decide on reflection that this particular house purchase isn’t for you.

Buildings Insurance Close

For any mortgage you have to have buildings insurance. You may be offered it from your mortgage provider but it can pay to shop around to find the best policy for you. If your property is leasehold and you pay a management or maintenance fee, check to see if you’re already covered.

Legal Fees Close

Both buyers and sellers need a solicitor or registered conveyancer to carry out the legal work involved in buying/selling a property.

Ongoing costs

Ongoing costs for a rental property

Agency Fees Close

If you want to use an agency to let or manage your property, they will charge a fee, usually a percentage of the monthly rent.

Redecorating Close

From a quick lick of paint to a brand new kitchen, you may wish to consider the costs of any home renovation that you’ll need to carry out before the property can be let out.

Property maintenance Close

This will depend on the age and condition of your property but you could get sprung with an unexpected cost, like a broken washing machine or blocked drain, at any time.

Empty time Close

Your property could be empty between tenants so you’ll may want to make sure that you can still pay your mortgage during this time.

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