11 Linnen Hall, Balbriggan - 16% yield?!

“€52,000 paid for a one-bedroom flat, 11 Linnen Hall, Georges Hill, Balbriggan, Co Dublin. It had the advantage of €50,000 Section 23 tax relief, as well as rental income of €8,400 a year. Yet it sold for €8,000 below its reserve of €60,000.”

independent.ie/national-news … 10990.html

That rental would be a 16% gross yield on 52k. What’s the catch ?

Balgbriggan I should imagine… There’s probably a management fee also…

To an investor the location is not an issue, the yield is. And even taking the management fee into account (let’s say 1k) and let’s say the rent of 8400 is a bit exaggerated. So let’s say 7k rent, less 1k management fee = 6k income p.a.

6k is a whopping 11.5% gross yield on 52k.

the location is an issue. no tenants = no yield

People do live in Balbriggan so it’s worth something in rental. If the rent is pitched right, someone will live there. So what would it rent for? (Is 8400pa / 700pm way off the mark?)

property.ie/property-for-sal … in/593248/

1300 euro management fee. PRTB costs. 2nd property tax. water charges to come. They’ll all add in to reduce yield.

But looks decent enough and beside the sea too.

You can get a 1 bed in the city centre for 700 pm.

In a decent location or at least equivalent to Balbriggan’s level of social unrest.

Unless you were forced into it by the local authority (which to my understanding is not the case) I can’t fathom how anyone other than rent allowance beneficiaries.

2 bedroom in same complex for 700pm…

let.ie/property-to-rent/BL30 … in/1068903

A market rent in Balbriggan for that shoebox should be 350 pm or lower…

I much prefer a 10% yield here on a €85,000 sales price and €775 asking rent:

8 La Touche Hall, Aungier Street, Dublin 2
1 Bed Apartment 33 m² For Sale
myhome.ie/residential/brochu … -2/1476037

Rental: rent.ie/houses-to-let/La-Tou … 2/1065594/

That looks like a - gasp! - bargain to me.

No catch, it’s a cash market.

In 2006 the purchaser could, no doubt, have received a 75% BTL mortgage, thus allowing them to bid up to €200,000.

Same property, same rent.
With bank lending they would have paid €200,000, without bank lending they paid €52,000.
Their respective yields (assuming same rent) would have changed from 4.2% to 16%.
After all expenses, one probably makes a loss, the other, a profit.

And the ‘problem’, apparently, is the lack of bank lending :unamused:


I admit I haven’t been out in Balbriggan in about 6 months, but you’d swear from this that it had suddenly been teleported into eastern Libya or the Syrian border with Turkey.

What are you on about?

I’d say property in Libya or Syrian/Turkish border has a bigger upside long term than Balbriggan… That’s what I’m on about!!!

Of course. :imp: Good luck with that.