Rent not enough to cover landlords' mortgage interest

Tuesday 08 October 2013 18.20
49% of landlords do not receive enough rent to cover mortgage interest payments
49% of landlords do not receive enough rent to cover mortgage interest payments

Almost half of Ireland's residential landlords do not receive enough rent to cover the interest on their mortgages.

The finding is as a result of an academic study of survey of 493 buy-to-let investors.

It found 49% of landlords of houses and apartments do not receive sufficient rental income to cover their interest payments but have not opted to sell their investments.

The remaining 51% are covering their interest payments.

Around 44% of respondents said they could afford to absorb the loss they will incur if they sell their properties but have opted not to sell.

It also found 57% of landlords bought properties near where they lived.

The study was based the database of MortgageBrokers.ie conducted by TCD Professor Brian Lucy, Karl Deeter of Irish Mortgage Brokers and Marie Hunt of Estate Agents CBRE.

Keywords: mortgage, property