Opinions on below inner city apartment for investment

Baby01032012

http://www.daft.ie/dublin/apartments-for-sale/dublin-8/11-emmet-place-usher-street-dublin-8-dublin-1317931/

Just thought id throw this property and location out for discussion

Drove past it today..Direct access to the Quays...Dublin 8...close proximity to Guniness store house..just off thomas street..across liffey from Smithfield

Massive Negative...facing Oliver Bond flats...id say pretty rough place particuarly at night time

Priced at 335k for a 6 bedroom apartment...caught my curiousity...given the potential rental yield or short term tourist letting given its location...

obviously viewing it may give a different picture..i cant imagine a 6 bed apartment...it must attract a large management fee as well


All opinions welcome

silent_spark

I know those apartments (or I did 10-15 years ago). At the time they were aimed at students and anyone I knew there had rented a room directly from the landlord. Rented by students from NCAD, Trinity etc. Area is a little rough around the edges, but I lived nearby for 3 years with no issues.

Gandalph

I'd say you could get a 9-10% yield if let to students which wouldn't be too bad, a bit more if managed by yourself.

A substantial amount of work would need to go into it if you were to look at different letting paths.

Baby01032012

Gandalph wrote: »

I'd say you could get a 9-10% yield if let to students which wouldn't be too bad, a bit more if managed by yourself.

A substantial amount of work would need to go into it if you were to look at different letting paths.

Thanks Gandalph, agent is quoting 14% I'm interested to see why you think 10%? That's 465 per room per month. Agent would be 650 per room per month. Depends on the condition and size of rooms I guess - pictures do not give any idea what state rooms are in so I'll assume the worst. So you could very well be right. Student letting plus short term Airbnb for the summer months may be the optimum yield scenario.

Location/ proximity is good but area in relation to the Oliver bond flats may not be good.

pilly

650 a month would be a huge stretch for one room in that apartment. Given that the only picture of the rooms is one very small one I'd imagine the rest are the same.

Cheshire Cat

6 bedrooms in a 104 sqm apartment? I'd say the one pictured is the biggest one!

Baby01032012

Cheshire Cat wrote: »

6 bedrooms in a 104 sqm apartment? I'd say the one pictured is the biggest one!

You could very well be right! If I do go and view it I'll report back.

Michael D Not Higgins

pilly wrote: »

650 a month would be a huge stretch for one room in that apartment. Given that the only picture of the rooms is one very small one I'd imagine the rest are the same.

http://www.daft.ie/dublin/apartment-share/dublin-8/10-usher-street-dublin-8-dublin-906486/

Here's the same building, 860/month.

pilly

Michael D Not Higgins wrote: »

http://www.daft.ie/dublin/apartment-share/dublin-8/10-usher-street-dublin-8-dublin-906486/

Here's the same building, 860/month.

Okay! I'm out of touch so, although that one looks slightly better decorated and the amount does include bills, I still wouldn't pay 860 month for a room! Not a hope.

Michael D Not Higgins

pilly wrote: »

Okay! I'm out of touch so, although that one looks slightly better decorated and the amount does include bills, I still wouldn't pay 860 month for a room! Not a hope.

The bills couldn't be more than €60/month (probably closer to 40) so the room is about 800. This is the going rate for a room in the city these days. It is a housing crisis after all.

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pilly wrote: »

Okay! I'm out of touch so, although that one looks slightly better decorated and the amount does include bills, I still wouldn't pay 860 month for a room! Not a hope.

Especially when there is 7 others living in the same building already!

pilly

Michael D Not Higgins wrote: »

The bills couldn't be more than €60/month (probably closer to 40) so the room is about 800. This is the going rate for a room in the city these days. It is a housing crisis after all.

Just because it's the going rate doesn't make it right or good value.

Michael D Not Higgins

pilly wrote: »

Just because it's the going rate doesn't make it right or good value.

Who said anything about right or good value, that's not how the market works. The discussion was on achievable yields.

Baby01032012

When you consider 1 bed apartments in D8 are 1200+ 800 for a a bedroom ain't too far off the mark. Sharing with 5 others though is likely to reduce this amount. In this market you're always going to find people desperate enough. Whether that is morally right is another argument. That's one for councils and government to sort out.

Gandalph

Baby01032012 wrote: »

Thanks Gandalph, agent is quoting 14% I'm interested to see why you think 10%? That's 465 per room per month. Agent would be 650 per room per month. Depends on the condition and size of rooms I guess - pictures do not give any idea what state rooms are in so I'll assume the worst. So you could very well be right. Student letting plus short term Airbnb for the summer months may be the optimum yield scenario.

Location/ proximity is good but area in relation to the Oliver bond flats may not be good.

Agent is most likely quoting a gross yield.

335,000 x 0.14 = 46,900
I'd generally write off about 30% on management (voids, letting fees, etc) for student accom.
32,830/335,000 = 9.8%.

If you successfully manage it yourself you can reduce that 30% write off of rent and hence get a better yield.