Investor from Dubai seeking Advice

aklobi

Hello Everyone,

Maybe investor is too big a word but i do have some savings and I decided to buy an apartment somewhere in Ireland. My cash only afforded me an apartment in "Mount Kennett Place, Dock Road, Limerick City, Co. Limerick". I am guessing this is not the best place to buy due to the low prices. How bad is it though? Any plans to facelift the area? In general, should I drop the idea or go for it?

Thanks all!

Jofspring

I'd drop the idea. The apartments and area doesn't have the best reputation. They are probably grand to rent but I certainly wouldn't be tying myself down by buying one.

aklobi

Jofspring wrote: »

I'd drop the idea. The apartments and area doesn't have the best reputation. They are probably grand to rent but I certainly wouldn't be tying myself down by buying one.

Hmmmm Thanks

maryk123

Agreed I wouldn't buy one there

Enright

My advice is to look elsewhere

sav1980

Have to disagree, firstly the prices are seriously low at the moment, as in the only way is up. Secondly the area around the river there is being pedestrianised and developed at the moment which can only add value. Think the long term plan is to bring more people and business down to the river area. Its a good location - pretty much in the city centre, easy for commuting in terms of access to major roads. Its always going to be near the river, nice views/ walks etc.. Think it would be hard to lose money if you buy at the right price.

aklobi

sav1980 wrote: »

Have to disagree, firstly the prices are seriously low at the moment, as in the only way is up. Secondly the area around the river there is being pedestrianised and developed at the moment which can only add value. Think the long term plan is to bring more people and business down to the river area. Its a good location - pretty much in the city centre, easy for commuting in terms of access to major roads. Its always going to be near the river, nice views/ walks etc.. Think it would be hard to lose money if you buy at the right price.

Thanks Everyone,

Thats what I was thinking. I am looking to buy in an area which is expecting a facelift. If what Sav1980 said s confirmed, then thats what I really am looking for! I would love to see this debate continue honestly as it will only help me decide more! I was gona drive to Limerick today but replys here along with info i gathered elsewhere put me off.. Not blaming the great members here, but just saying. Thanks again everyone and i will be glad to help if anyone comes to the Middle East!

maryk123

Ok lots of rented buildings lots of rent allowance stand outside any of these apartments any day and see the gurriers outside is enough to put anyone off. Then go inside and stand outside anyone's door and you can hear their tv inside. If it is on the way up you would nearly need to clear the whole building. Still not convinced.

aklobi

maryk123 wrote: »

Ok lots of rented buildings lots of rent allowance stand outside any of these apartments any day and see the gurriers outside is enough to put anyone off. Then go inside and stand outside anyone's door and you can hear their tv inside. If it is on the way up you would nearly need to clear the whole building. Still not convinced.

Thanks Maryk

MadsL

sav1980 wrote: »

Have to disagree, firstly the prices are seriously low at the moment, as in the only way is up. [...].. Think it would be hard to lose money if you buy at the right price.

...and there's the reason we are in a financial mess.

Let me introduce you to my friend economics, his pal Stagnation, and his poster child Japan.



Ireland is about where Japan was in 1996. Ireland has probably 10+ years to see ANY growth in house prices.

aklobi

MadsL wrote: »

...and there's the reason we are in a financial mess.

Let me introduce you to my friend economics, his pal Stagnation, and his poster child Japan.



Ireland is about where Japan was in 1996. Ireland has probably 10+ years to see ANY growth in house prices.

Great contribution!

sav1980

Guess what it comes down to is how long you're willing to hang onto the property for. Nobody is saying you'll double your money in the next 12 months, but if you're renting it out and willing to hold onto the place for a few years then I think it may be a worthwhile investment. That's just my opinion though.

ABEasy

MadsL wrote: »

...and there's the reason we are in a financial mess.

Let me introduce you to my friend economics, his pal Stagnation, and his poster child Japan.



Ireland is about where Japan was in 1996. Ireland has probably 10+ years to see ANY growth in house prices.

That's assuming you are buying for capital appreciation, which is a very bad idea in the current market. However a gross rental yield of 20% on a dock road apartment is not to be sniffed at!!

OP, the biggest problem I can see here for you is the logistics of living in the middle east and having an apartment in Limerick. By their nature apartments will have a higher tenant turnover than a family home, therefore more maintaince & letting fees & hassle. If you can live with that then go for it, the yield is good and you could easily absord a serious rent reduction before the return drops to 'normal' returns.

I'd also consider a house in Limerick, e.g. the 2 on the old cork road in the last allsops auction were listed at 45k & did not sell. Would be less of a hassle & would be more sellable should u wish to sell (larger market looking at family homes).

gambithh

maryk123 wrote: »

Ok lots of rented buildings lots of rent allowance stand outside any of these apartments any day and see the gurriers outside is enough to put anyone off. Then go inside and stand outside anyone's door and you can hear their tv inside. If it is on the way up you would nearly need to clear the whole building. Still not convinced.

sorry i am not understanding this.

ok,not the nicest place in ireland to live but then again the op wont be living there just investing from income from tenants,but they have a high occupancy rate.
as stated its a nice yield from a 35-40k investment.

maryk123

What I am saying is if the area is not nice the tenants are not great all you will have is hassle with rent etc. buy a nice place get nice tenants. That's the reality down that area. If you can't get rent out of tenants and are constantly doing the place upas the previous tenants that left trashed the place and also owe you rent. Best of luck

jsd1004

ABEasy wrote: »

That's assuming you are buying for capital appreciation, which is a very bad idea in the current market. However a gross rental yield of 20% on a dock road apartment is not to be sniffed at!!

OP, the biggest problem I can see here for you is the logistics of living in the middle east and having an apartment in Limerick. By their nature apartments will have a higher tenant turnover than a family home, therefore more maintaince & letting fees & hassle. If you can live with that then go for it, the yield is good and you could easily absord a serious rent reduction before the return drops to 'normal' returns.

I'd also consider a house in Limerick, e.g. the 2 on the old cork road in the last allsops auction were listed at 45k & did not sell. Would be less of a hassle & would be more sellable should u wish to sell (larger market looking at family homes).

Management fee is over a grand which makes a big hit on your rent. these will only let for about 400 euro a month.

oz2013

I contemplated purchasing one of these as an investment property last year. €42k was a bargain price but unfortunately our monies were required elsewhere.