Buying property/land

DonalB1

Hi all,

Strange enough request here but would love some advice so I know I make a decision with my head rather than my heart. 

There’s an old nursing home in the area i grew up. It’s completely run down, roof and every aspect inside would need to be replaced and redone. Its been derilict for the past 6 years and has been a complete nuisance to the whole local area with people coming to illegally gut it and teenagers drinking there and wrecking havoc. 

While I’ve no interest in a nursing home, my family have land that surrounds it. I’d love to own it, it’s a 4 acre site with incredible views and is now on the market for 180,000 euro. The thing is I have no idea what to do with it. 

I have no idea what it would cost to renovate, or if it could be re zoned for residential. I am currently renting in cork city but would love to move back out to it. It’s an incredible plot of land but again no idea would planning even be possible. 

I suppose what I’m wondering is, how much is land or a property like that likely to devalue? Am I crazy to be thinking about this when I don’t have a clear idea what couldn’t be done with it? I’d love to own it but I suppose I don’t want to bring a serious burden on myself either

Padre_Pio

Suppose the first question would be, would you live in it if you could?

Would you knock it and build a house?

180k is a lot of cash to spend on something you like, but have no use for.

DubCount

OP. All you have at the moment is a vague idea. You are not a property developer. You have no experience of a renovation of this size, how to get planning permission changes, how much it would be to renovate, does it make more sense to knock it down and build a big house or turn it into multiple apartments, or turn it into a hotel etc. Can you get financing for the renovation and at what rates/terms.

180k is a lot to spend on a vague idea with a side helping of antisocial behaviour on your land. I'd pass and leave this to someone who has a definite idea about what to do, how to do it, and enough money to do it. At the moment its sounds like the Irish edition of Escape to the Chateau !!

DonalB1

It really is an edition of Escape to the Chateau haha

I always dreamed of owning the site when I was growing up. I would definitely live in it if I could. It’s definitely the nicest site in the area. The problem is as mentioned. I don’t know what could or can be done with it but I know I’ll probably never had the chance of buying it again.

I’d be happy enough to purchase it and sit on it until I knew what I could do exactly, but I suppose what I’m really wondering how much a site like that would devalue.

could it say be worth less than 100,000 in 5 years. If I thought worst case is I’d lose 20k in that time then it’s definitely a risk I’m willing to take

jamesf85

Land is overvalued (this thread case and point) and is likely to devalue heavily in the next year or two.

Housing in urban areas will likely not see much of a change, decrease a little perhaps but with a big recession incoming, now is not the time to over pay for vanity projects

TCDStudent1

https://www.boards.ie/discussion/comment/119665952#Comment_119665952

Just curious as to why you think land will devalue heavily in the next couple of years? Is there something to suggest it will?

DubCount

Second guessing the market is impossible. Maybe land prices will decrease, maybe they will increase - nobody can tell and nobody knows by how much. For this type of property, you have the added complication of the building you're buying. In a few years, you may find a buyer with a plan that would pay a premium for the place. You might find yourself having to spend money knocking it down or securing it against teenage drinks parties.

I think this sounds like an emotional purchase. Without a plan, you'll just leave this land idle for a number of years and then take a gamble on what the market does in the mean time. Emotion and investment dont mix well. If you have 180k to invest, go talk to a financial planner to advise you on how to make that money work for you, and leave emotions at the door.

Padre_Pio

While I think you're wasting your time, I'll entertain this:

4 acre plot for 180k, so 45k an acre. Compare this with the going rate of development land in the area. Is the land overpriced?

If a portion of the 180k is in the nursing home, then knocking it will reduce your land value plus the cost of knocking the building and removing the rubble. Sitting on the land will further devalue the nursing home, until you eventually knock it. Remember, you're not sitting on land. You're sitting on a derelict property. The land may appreciate or depreciate. The property will definitely depreciate, to the point where it's a huge liability.

If you want to save the nursing home, then figure out if you can convert it into a home. Then factor in how many tens (hundreds?) of thousands it'll cost.

You need your head to rule your heart on this one.

Ubbquittious

You can start a fundraiser to turn it into a community centre. No need to empty your own pockets that way. I know a place where a derelict dancehall was bought this way

AnRothar

To the OP google Our Lady's Hospital on the Gort Road in Ennis.

This has change hands many times since it closed back in the early noughties.

Last I heard was they were going to convert it into a hotel.

It's still empty and awaiting development.