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Invest or Save? What €300,000 Can Really Do – Dublin 8 Property vs. Bank Deposit

Investors often face a key question:

“Should I leave my money in the bank—or use it to buy a property?”

Let’s compare two real-world options using today’s figures:

✅ Option 1: Invest in a 1-Bedroom Apartment in Dublin 8

This well-located apartment offers excellent potential with market rent of €2,100/month, and is not rent capped, allowing full income flexibility. A modest refurbishment and standard purchase costs apply.

💰 Investment Breakdown:

  • Purchase Price: €300,000
  • Stamp Duty (1%): €3,000
  • Solicitor Fees (1%): €3,000
  • Capital Upgrade (kitchen + bathroom): €12,000
  • Total Upfront Cost: €318,000

📈 Rental Income & Costs:

  • Annual Gross Rent: €2,100 x 12 = €25,200
  • Annual Management Fees: €2,500
  • Other Allowable Expenses: €2,500
  • Total Deductible Costs: €5,000
  • Taxable Rental Income: €25,200 – €5,000 = €20,200
  • Income Tax @49%: €9,898
  • Net Annual Rental Income: €25,200 – €9,898 = €15,302

📊 Yield:

  • Net Yield (Post-Tax on €318,000): 4.81%

🏦 Option 2: Deposit €300,000 in a Pillar Bank

  • Average Interest Rate: 2%
  • Gross Annual Interest: €6,000
  • DIRT Tax (33%): €2,000
  • Net Annual Return: €4,000
  • Net Yield: 1.33%

🔍 5-Year Comparison – Property vs. Savings

MetricProperty InvestmentBank Deposit
Initial Outlay€318,000€300,000
Net Annual Income (after tax)€15,302€4,000
5-Year Net Income€76,510€20,000
Rent Cap?NoN/A
Capital Appreciation?Yes (market dependent)No

Note: Assumes full occupancy and no mortgage. Capital growth potential not included.

🏁 Conclusion: Why This Dublin 8 Property Makes Sense

Even with taxes, fees, and capital works included, this property delivers a net income nearly 4x higher than a savings account over five years.

With:

  • No rent restrictions
  • Strong tenant demand
  • A central Dublin location
  • And future resale potential

…it represents a far more productive use of capital than leaving money idle in the bank.

📞 Interested?

Contact Hopkins Ward today for a tailored investment breakdown or to arrange a private viewing of this opportunity.

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