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Worth The Investment?

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http://www.ireland.com/newspaper/property/...ORTHTHE_23.html

Worth the investment?

Edel Morgan

The address: 51 Merrion Village, Ballsbridge, Dublin 4.

The agent: Sherry FitzGerald.

The property: two-bed ground floor apartment for €525,000.

The look: hulking 1980s-style apartment development that could almost be mistaken for an office block.

The landscape: Off the Merrion Road behind security gates, opposite St Vincent's Hospital and close to Merrion shopping centre and all the attractions of Dublin 4. Set on landscaped grounds.

The features: Two-bed 49sq m (530sq ft) apartment with entrance, livingroom and door to balcony. The kitchen has built-in wall and floor units. The bedrooms have built-in mirrored Sliderobes. Designated parking space.

What will it cost an investor to buy? At 80 per cent of the value of the property over 25 years at an investment mortgage variable rate of 3.9 per cent APR, the repayments per month would be €2,166.21. An interest-only loan for five years at 80 per cent mortgage over 25 years, at a variable rate of 3.9 per cent APR, repayments for the first five years would be €1,323 per month.

What will it cost to buy? (Own home) At 92 per cent of the property value, at a three-year fixed rate of 3.9 percent APR and over 25 years, the monthly mortgage repayment would be €2,546.79. Over 35 years the monthly repayments would be €2,135.71.

Potential: The rent for two-beds in Merrion Village is upwards of €1,500 per month but with only one bathroom and given its compact size, it might struggle to achieve that much.

Verdict: Apartments at Merrion Village don't come on the market that often. A great rental location where capital appreciation seems guaranteed.

My verdict :1000 euro a square foot for a tiny 2 bed that you could rent for 12 000 euro a year less than a 92% mortgage, without losing your 8% deposit or the stamp duty, you would want to be mad in the head to buy now.Guaranteed capital appreciation of minus 2% per year for the next 15 year

Sayonara, the japanese know all about goodbuys at the top of the market. :(

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http://www.ireland.com/newspaper/property/...ORTHTHE_23.html

My verdict :1000 euro a square foot for a tiny 2 bed that you could rent for 12 000 euro a year less than a 92% mortgage, without losing your 8% deposit or the stamp duty, you would want to be mad in the head to buy now.Guaranteed capital appreciation of minus 2% per year for the next 15 year

Sayonara, the japanese know all about goodbuys at the top of the market. :(

Never mind washing its own face, this investment needs a team of healthcare assistants to feed it and wipe its ass! :lol::lol:

It seems the Catholic Church's loss has been the banks gain in Ireland. The modern catechism seems to be "prices always go up".

Do people go to the bank to confess their impure thoughts? "I have been thinking awful things recently. I have had evil thoughts about prices going down".

Loan officer: "say 3 Hail Greenspans and for God's sake get on the ladder!"

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http://www.ireland.com/newspaper/property/...ORTHTHE_23.html

My verdict :1000 euro a square foot for a tiny 2 bed that you could rent for 12 000 euro a year less than a 92% mortgage, without losing your 8% deposit or the stamp duty, you would want to be mad in the head to buy now.Guaranteed capital appreciation of minus 2% per year for the next 15 year

Sayonara, the japanese know all about goodbuys at the top of the market. :(

Ah it's hilarious. Isn't even like D4's a good place to live, it has a nasty combination of being terribly dead at evenings and weekends and general lack of amenities apart from boring stuff like the RDS and Herbert Park plus shocking traffic and lots of office drones during the day. There's nowhere good to get a dodgy fried breakfast on a Sunday morning :( It does make your car insurance very low though.

In all seriousness, the area does have the merits that it's closeish to town, and isn't too oversupplied with apartments. Scarcity alone will keep prices from going rock bottom at any point but they will drop from current silly highs.

Random anecdote: In 2004-2005 I rented (with friends) a house on Anglesea Road, for roughly 20K p/a. It subsequently went on the market for 1.2 million. Yes, that's right, 70 years' worth of rent. Twas well worth it :)

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Never mind washing its own face, this investment needs a team of healthcare assistants to feed it and wipe its ass! :lol::lol:

It seems the Catholic Church's loss has been the banks gain in Ireland. The modern catechism seems to be "prices always go up".

Do people go to the bank to confess their impure thoughts? "I have been thinking awful things recently. I have had evil thoughts about prices going down".

Loan officer: "say 3 Hail Greenspans and for God's sake get on the ladder!"

:lol::lol::lol:

You got it in one, Mamon is the only god worth praying to in Ireland.

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In all seriousness, the area does have the merits that it's closeish to town, and isn't too oversupplied with apartments. Scarcity alone will keep prices from going rock bottom at any point but they will drop from current silly highs.

Random anecdote: In 2004-2005 I rented (with friends) a house on Anglesea Road, for roughly 20K p/a. It subsequently went on the market for 1.2 million. Yes, that's right, 70 years' worth of rent. Twas well worth it :)

These small 2 bed apartments will come off worst in the crash, especially as it is in an 80's soviet style block.

Houses will do much better and your Angelsea Road gaff may still be worth a million in 2010.

Heres my prediction for this apartment.

525,000 euro 2006

380,000 euro 2010

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These small 2 bed apartments will come off worst in the crash, especially as it is in an 80's soviet style block.

Houses will do much better and your Angelsea Road gaff may still be worth a million in 2010.

Heres my prediction for this apartment.

525,000 euro 2006

380,000 euro 2010

I think that could be a little high. I' m predicting a 50% drop (i.e. back to 2001ish levels) across the board. That's what it takes to get back to proper salary multiples. Though maybe it'll take longer than 4 years to get there.

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I think that could be a little high. I' m predicting a 50% drop (i.e. back to 2001ish levels) across the board. That's what it takes to get back to proper salary multiples. Though maybe it'll take longer than 4 years to get there.

I presume you mean a 50% drop from the peak which we're not at yet.This apartment probably will go over 600,000 euro before "paddy last" realises the game is up.

Japan has had falling house prices for 15 years, so we could still be seeing drops in 2023.

I wont be suggesting that to anyone outside the forum though, don't want the men in white coats around. :rolleyes:

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  • 302 Brexit, House prices and Summer 2020

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      • down 5% +
      • down 2.5%
      • Even
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