I suspect 3.85m was arrived at by using the following formula;
purchase price + stamp + refurb cost + forgone interest (or financing) = breakeven
The thing that would really worry me about these places is not only the shockingly low rental yield (8k a month is not even acheivable by the way, as the place has been for rent for months with no takers), but the prospect of any kind of property tax, which will wipe the ‘net’ yield to almost zero after EA fees, Insurance etc
Last thing one wants is to buy this place, pay the stamp and then in 2 years time find out you owe 1% of the ‘assessed value’ in some form of Mansion Tax, ie 35k a year or so
People may laugh at that possibility, but the warnings are there. Even the Lib Dems in UK are talking about it now.
Any tax like that will force alot of these homes onto the market by retired couples who own them outright and were happy just sitting on them, but the Tax now eats into all of their pension…suddenly they have to sell.
Anyway, anytime I mention this risk to people I get laughed at, but the worse things get the more likely it becomes and it will become very easy to justify if it ever gains traction in the UK
There’s no way a 1% levy gets landed on a retired couple, there would be a revolution. The govt will be cleverer than that, they will stick the 1% levy on but for pensioners the taxes are only paid when the house is sold. So the pensioner doesn’t get hit, it just rolls up and gets taken out of the inheritance.
Anyone know how this auction went yesterday? AMV was €3.4m, which is rather excessive. I know Number 64 wasn’t at the same standard of walk-in condition but was much better value at €1.8m in 2013. It just seems that everything over €1.5m is about €500k to €1m over priced.
House was in renovated condition in March 2004 (most of the structural work in evidence today was done) and Sherry subsequently sold it for at price not exceeding the AMV of 2.7m
Was renovated again post purchase in 2004 to its current condition. Pretty sure that no major structural work or extension was done in this renovation but a completely new interiors / kitchen and some interior styling (wooden beams) added.
There are few +2m houses D4 that are selling today for even close to their mid-2004 prices ? I think that Eglinton Road is a good road, but nothing like an Ailesbury Road, Herbert Park, Park Avenue or other core prestige D4 locations. That is where I think the EA (and owners) have mispriced this house.
72 Eglinton Road sold for 2.6m at end 2014, but it was a fully detached non-period two story (perfect for extending), and had one of the best back gardens in Eglinton Road - very long and fully south facing. 85 Eglinton Road also sold for 2.6m in 2014 but had almost half an acre of land with a very imposing large detached period house in its centre. I don’t think 61 Eglinton Road is in the league of these two houses. It’s renovation gives it a short at achieving their pricing, but not the current price being quoted.
Given how poor todays auction was, at the very most they should have stuck with the 3.4m price, on the basis of and un-renovated value of c. 2.9m, to see if they could pull off getting a c. mid-2004 pricing for a +2m D4 house. If they couldn’t find an Embassy or Corporate type buyer, then they should be more willing to accept c. 3m (which I think is still a decent deal).
This was the Indo top 10 article - would agree with much but not all of it. The article was done to prep the market for several Howth houses that were being readied for sale (and two other Dalkey houses but they never came to market)
There was another Sunday Paper article on the top 20 from 2006 but I can’t find it. It included the top 10 above plus Vico Road, Killiney Hill Road, Temple Villas, Cowpower Road, Westminister Road (I think), Herbert Park, Raglan Road, Elgin Road some road from Malahide and another from Dalkey / Killiney. It did not have Eglington Road I’m afraid ?