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Flats In Donegal For Sale At 11,700 Euros.

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http://www.belfasttelegraph.co.uk/news/local-national/republic-of-ireland/donegal-flats-worth-euro200000--on-market-for-euro11700-14983916.html

You have to buy the whole block though.

Thanks to Malthus for the link

This what happens when you build too many flats in an area where they don't need them

Yup in nearly every town in Donegal there loads of flats that no one wants..

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OK, 47 flats for 550K.

If you bought them and rented them all out for half the typical rent, say E150 a month, you would bring in over 7K a month. Not a bad return.

Plus it would put downward pressure on local rents. Win-win. You could also specify they are only available to young, working locals. Win-win again.

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OK, 47 flats for 550K.

If you bought them and rented them all out for half the typical rent, say E150 a month, you would bring in over 7K a month. Not a bad return.

Plus it would put downward pressure on local rents. Win-win. You could also specify they are only available to young, working locals. Win-win again.

You seem to have missed the fact that the properties still need fitting out, which will probably cost as much again as the purchase price.

And why is it a win-win? Why can't older retirees benefit from these low rents you are offering?

tim

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You seem to have missed the fact that the properties still need fitting out, which will probably cost as much again as the purchase price.

And why is it a win-win? Why can't older retirees benefit from these low rents you are offering

I didn't read that far down. It would not cost 550K to put in 47 bathrooms and kitchens. On paper it would still be a viable plan.

My plan would give young working people an opportunity to live in their first place, surrounded by their peers, and save like mad for a first home of their own as prices plummet towards them. If you want to buy a block like this and offer it to retirees, who probably did nicely out of the bubble in the first place, be my guest. Or would you rather just whine that others are not doing so?

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I didn't read that far down. It would not cost 550K to put in 47 bathrooms and kitchens. On paper it would still be a viable plan.

My plan would give young working people an opportunity to live in their first place, surrounded by their peers, and save like mad for a first home of their own as prices plummet towards them. If you want to buy a block like this and offer it to retirees, who probably did nicely out of the bubble in the first place, be my guest. Or would you rather just whine that others are not doing so?

Its more than just kitchens and bathrooms.

and yes I am whining about why all the "property" deals are only avilable to "working" people.

If we are going to move to a situation where it is more common to rent you have to have somebody renting to retirees!

tim

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Was this written by Jane Austen or summit?

The cheapest apartments in Ireland are about to go for auction in Donegal for only €11,700 each --....

The price per apartment works out at almost one third cheaper than the next cheapest apartments in the country which are for sale in Redbarn, Co Cork, for €40,000 --

Surely, a third cheaper than 40k is 40 * ( 1 - 0.333 ) = 27k

:blink:

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and yes I am whining about why all the "property" deals are only avilable to "working" people.

If we are going to move to a situation where it is more common to rent you have to have somebody renting to retirees!

tim

Listen, I have no intention of moving to Donegal and doing this. I am just pointing out that every cloud has a silver lining, and if someone wished to they could provide young people - members of a generation who have got nothing but a giant finger from their elders out of this crash - with a boost.

They do however need to show they have the intent and ability to find work. One waster on the social could turn a nice block of flats into a hellhole, fit for nothing but other wasters.

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Listen, I have no intention of moving to Donegal and doing this. I am just pointing out that every cloud has a silver lining, and if someone wished to they could provide young people - members of a generation who have got nothing but a giant finger from their elders out of this crash - with a boost.

They do however need to show they have the intent and ability to find work. One waster on the social could turn a nice block of flats into a hellhole, fit for nothing but other wasters.

You obviously don't know Donegal - where are the young working people? E M I G R A T I O N

I was bear Blacklion recently and there were no young people but loads of flats, which nobody could sell.

Everyone's bolting for the exits...

http://www.irishcentral.com/news/10000-cars-abandoned-by-emigrants-leaving-Ireland-105242113.html

"It has been estimated that 10,000 cars have been abandoned at Dublin Airport over the last two years as people emigrate, that is on average 10 cars a week.

Karl Deeter, manager of Irish Mortgage Broker’s Operations said that there has been a notable increase in emigrants abandoning their homes, cars and debts fleeing to another country.

Speaking to the Sunday Tribune, he said “There is no doubt that this is a remarkable problem now. Not only are we seeing that banks have an increasing amount of abandoned homes in stock, but loans are being left outstanding, and the fact that car hire companies are having to tow away cars on a regular basis shows the problem in a clearer light."

Deeter believes that 30 percent of those who bought homes in Ireland during the boom times have since relocated and many were foreign nationals who moved to Ireland to begin with"

Edited by gruffydd

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You obviously don't know Donegal - where are the young working people? E M I G R A T I O N

I was bear Blacklion recently and there were no young people but loads of flats, which nobody could sell.

Everyone's bolting for the exits...

http://www.irishcentral.com/news/10000-cars-abandoned-by-emigrants-leaving-Ireland-105242113.html

"It has been estimated that 10,000 cars have been abandoned at Dublin Airport over the last two years as people emigrate, that is on average 10 cars a week.

Karl Deeter, manager of Irish Mortgage Broker’s Operations said that there has been a notable increase in emigrants abandoning their homes, cars and debts fleeing to another country.

Speaking to the Sunday Tribune, he said “There is no doubt that this is a remarkable problem now. Not only are we seeing that banks have an increasing amount of abandoned homes in stock, but loans are being left outstanding, and the fact that car hire companies are having to tow away cars on a regular basis shows the problem in a clearer light."

Deeter believes that 30 percent of those who bought homes in Ireland during the boom times have since relocated and many were foreign nationals who moved to Ireland to begin with"

is that Irish maths? 2 years x 52 weeks x 10 cars = 10,000?

no wonder their economy is in tatters

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OK, 47 flats for 550K.

If you bought them and rented them all out for half the typical rent, say E150 a month, you would bring in over 7K a month. Not a bad return.

Plus it would put downward pressure on local rents. Win-win. You could also specify they are only available to young, working locals. Win-win again.

Makes sense for socail housing, the government should buy them up.

14% would cover interest, maintenance of the properties and a contingency fund, €136 a month in rent for each flat.

Edit: It's not on market for that price, it's a reserve.

http://www.property.ie/commercial-property/47-Apartments-Navenny-Place-Trusk-Road-Ballybofey-Co-Donegal/70879/

disclosed reserve of €550,000 (plus VAT

CC2x4R4IffRdRraxs6NDqScJpjMIZksKwfsDOtXawBRtPXBpZSZoPTQ1MA==.jpg

P79HCyRpXIt6uQ5sv39DkhFUml0TMSQSJfKBYcKMg7ZtPXBpZSZoPTQ1MA==.jpg

Edited by northwestsmith2

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Edit: Not sure what is going on with this one.

http://www.irishtimes.com/newspaper/ireland/2010/1125/1224284097688.html

The Irish Times - Thursday, November 25, 2010

THERE WERE heated scenes at a public auction in Co Donegal yesterday when no bidder emerged for 47 partially completed apartments that failed to make the reserve of €550,000.

The apartments, at the Navenny Place complex, in Ballybofey, were put up for sale in one lot by Patrick McDermott, the receiver appointed to Navenny Developments Ltd by Ulster Bank.

There was a Garda presence outside the premises with about 100 builders and subcontractors attending the auction in Jackson’s Hotel, Ballybofey. Former workers on the site protested outside.

He called on Mr McDermott “to try and work with the men” and “for common sense to prevail”. After a 20-minute adjournment, auctioneer Dermot Rainey of Sherry FitzGerald Rainey, failed to get any bids, despite dropping the opening request to €300,000. It was withdrawn and the apartments are now available for sale by private treaty

http://www.bbc.co.uk/news/uk-politics-12002783

BBC

16 December 2010 Last updated at 14:24

Unfinished and empty

The flats at Navenny Place remain unfinished and empty, with locals claiming it has lurched from emblem to eyesore, standing testament to the folly of the Irish building boom.

The project was financed by Ulster Bank, part of the UK taxpayer bailed-out Royal Bank of Scotland.

Ulster Bank pulled the plug, the development company went into receivership and the entire residential site went up for sale.

This is where the numbers become difficult to compute, because this block was once seen as being worth around 9.5m euros (£8bn; $12.6bn).

Yet the bank put it up for auction with a reserve of just 550,000 euros. That works out at around 11,700 per flat.

http://www.property.ie/commercial-property/47-Apartments-Navenny-Place-Trusk-Road-Ballybofey-Co-Donegal/70879/

http://www.sfr.ie/asp/property_View.asp?p=968

This property was last updated: yesterday morning

For Sale by Public Auction

Price : €550000 Plus Vat

Edited by northwestsmith2

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People have a funny idea about reserve prices, they think it means something. It doesn't

Yes and as no interest whatever was gained even at €300,000 is it even possible that this property actually has a negative value? Looking at the pictures there are other parts to the same building .. so one assumes that the flats would be very leasehold and would be liable for both ground rent and for property taxes. Also it looks to me that the flats would need a quite allot of work on them to finish them unless you were intending to do the work yourself you would have to employ local labour to do it (very expensive) or ship in some Eastern Europeans (might be hard given the number of unemployed construction workers in the Irish Republic). Realistically you have to spend €50,000 or so on each flat to make it a saleable proposition. Then you have to somehow sell them for €60-70,000 euro's to a skeptical public who almost certainly won't be able to get a mortgage .. also you will find it very hard to sell any of the flats until they are all completed .. (nobody will want to live in a half completed building with the risk that they will never have any neighbours ..

So whoever takes them on is going to have to have a good couple of million in CASH (no bank is going to lend on this) in addition to the €300,000 it would cost them to buy it ..

You would have to have balls of steel to take it on .. especially as when you look both back (to see the price these sorts of flats went for in the 90's) and forward who will pay for this type of flats int he future? Given that the country is basically bankrupt and it's not possible for young people to stay, who will pay the €60-70,000 the completed flats would be worth ?

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There is a thread on the property pin about these flats - to give background detail -- and if what I am reading is correct its the UK taxpayer that is taking the loss through Ulster Bank (Royal Bank of Scotland)

http://www.thepropertypin.com/viewtopic.php?f=10&t=33739

Theres a bloke in that thread who said exactly the same thing as I did in three paragraphs . .. in two lines .. Who says the Irish are full of blarnie :)

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Still for sale, wondering if this will ever be purchased or if the contractors are claiming money.

The depositors are going to lose out and you need to pay over some extra cash I think to meet the terms of the planning permission and a bond

in case you go go bust so they can complete it.

http://www.sfr.ie/asp/property_View.asp?p=968

Status in relation to any contracts signed or any deposits paid to the original promoters.

It is planned to sell the property with these existing contracts removed. Any deposits that

have been paid over to Navenny Developments Limited are now unsecured creditors of

Navenny Developments Limited.

Status in relation to sewerage, water, electricity charges / contributions and if there are

receipts available for payments made.

All development charges in respect of planning Ref: 05/9098 have been discharged. In

respect of Planning Ref: 07/60579 there are development charges outstanding of €20,331 and

outstanding bonds of €250,000 and €17,780 in respect of conditions 2(g) and 8

Details of all Architects Certificates already issued in respect of the development.

Last cert dated 20 February 2009. At that point in time total value of works certified was

€7,208,785.

Before any part of the development herein approved is commenced the developer shall

provide adequate security to the Council for provision and completion of all services

required by the development including roads, sewers, water supply, footpaths, public

lighting, open spaces and other services

*Water & Sewer € 12,301.92

Roads & Marine € 4,818.92

Town & Village Renewal € 1,486.60

Economic Community Culture € 1,486.60

_______________

TOTAL: €20,114.04

x Contruction inflation index = €20,331 ?

+ €250,000 bond to widen carriageway to 9m, traffic island, footpaths, wall.

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Bankers, give you an umbrella when the sun shines, indeed, a box of umbrellas, but the moment it starts to rain...they'll take them back...unopened of course.

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I checked the Propertypin thread but there are no updates on it yet.

Still for sale, the council must be able to find the money and do the road works needed. Unless they can get even better deals elsewhere.

Meanwhile England has avoided anything like this through unlimited printing.

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Still up for sale , Price : €550000 Plus Vat

I can't imagine the price is putting people off, or foreign investors.

Surely anyone could go from second or first fit and finish this, even if contractors want their money it's not a problem for the owner.

And the council want money to widen a road etc, but it's not insurmountable, €200K plus on the purchase.

Why are they still available for sale?

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Still up for sale , Price : €550000

In the article the sales agent makes the following claim...

Andrew Long, of HTMOR, said he received 10 offers. "All parties made cash offers and did not require bank funding. We are now seeking more block sales as we believe we have a number of parties still interested in these types of purchases," he added.

Apparently not.

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"Quote

http://www.bbc.co.uk...litics-12002783

BBC

16 December 2010 Last updated at 14:24

Unfinished and empty

The flats at Navenny Place remain unfinished and empty, with locals claiming it has lurched from emblem to eyesore, standing testament to the folly of the Irish building boom.

The project was financed by Ulster Bank, part of the UK taxpayer bailed-out Royal Bank of Scotland.

Ulster Bank pulled the plug, the development company went into receivership and the entire residential site went up for sale.

This is where the numbers become difficult to compute, because this block was once seen as being worth around 9.5m euros (£8bn; $12.6bn).

Yet the bank put it up for auction with a reserve of just 550,000 euros. That works out at around 11,700 per flat."

Seems like the Irish aren't the only ones who are not very good at maths. Do you think they know what "bn" stands for? Oh, the Beeb! Maybe they are trying to talk the pound down? And the USD with it.

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"Quote

http://www.bbc.co.uk...litics-12002783

BBC

16 December 2010 Last updated at 14:24

Unfinished and empty

The flats at Navenny Place remain unfinished and empty, with locals claiming it has lurched from emblem to eyesore, standing testament to the folly of the Irish building boom.

The project was financed by Ulster Bank, part of the UK taxpayer bailed-out Royal Bank of Scotland.

Ulster Bank pulled the plug, the development company went into receivership and the entire residential site went up for sale.

This is where the numbers become difficult to compute, because this block was once seen as being worth around 9.5m euros (£8bn; $12.6bn).

Yet the bank put it up for auction with a reserve of just 550,000 euros. That works out at around 11,700 per flat."

Seems like the Irish aren't the only ones who are not very good at maths. Do you think they know what "bn" stands for? Oh, the Beeb! Maybe they are trying to talk the pound down? And the USD with it.

Wouldn't bother considering buying any junk like these flats as they are worthless...not worth a red cent imo. They're even talking about knocking down blocks of "apartments" (flats became apartments over here too during the madness) on the periphery of Dublin. Was in Dublin the other night at a work do....struck me that only about one of the seven or eight people there that I knew had a mortgage. Anyone who bought in the last 5 years has simply no discretionary income and cannot afford to socialise.Irish society is now dividing into those who were shafted by being dumb enough into being conned into the property scam and those who weren't. Of course many of those who were unaffected were the babyboomer generation who are doing very nicely in Ireland. A few of us relatively young people who avoided the consensus were derided as unpatriotic idiots..even being told by former PM Ahern at one stage that we should consider suicide. I don't even see the people I know who took out mortgages in the last 5 years. They are the living dead, bereft of any social life, cocooned in their slaveboxes.

The recently elected Irish government pathetically tried to follow its predecessor by attempting to invigorate the property market by increasing tax reliefs etc. But it's far too late. Property owners will also enjoy paying a flat property tax in Ireland next year.

Smart money seems to be still hanging on,perhaps with a view to buying land. Many upper-middle class Irish made their money generations ago by buying distressed estates of the impoverished Anglo-Irish gentry after the famine. Looks like the same pattern will reemerge shortly

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