How much to offer on this property? (Drumcondra)

3 Achill Road, Drumcondra, Dublin 9

myhome.ie/residential/search … CAIL407220

Hi all,

I have been looking around in the area for a couple of years now on and off and am interested in this property. Any advice/thoughts on a fair and realistic offer to put in?

#31 down the same road is going for €475,000, so #3 seems a wee bit overpriced in comparsion…

31 Achill Road

The Pin should start charging for these threads… set up a helpdesk, €1 per minute for people who cant figure things out for themselves.

DYOR

I like these threads. Isnt “Whats it worth” the ultimate question in Pinsters’ minds?

Its nice but 650 is a bit radio rental, id say 280

It’s a decent sized three bed.
For rental purposes it’s a four bed. (Dining room as an extra bedroom)

Falling rents - E300 per bedroom, house rents for E1200, annual rent E14,400

Stabilising rents - E500 per bedroom, house rents for E2000, annual rent E24,000

Multipliers range from 12 to 20, 15 taken as typical guide

Falling rents - E172,800 to E288,000, typical value E216,000
Stabilising rents - E288,000 to E480,000, typical value E360,000

I’d say it’s current value is about E280K - E300K but it’s likely to fall somewhat.

sorry but these posts make me crazy.‘whats worth’ don’t make any sense in present market. Pinster will tell with rental yield or in reference to some fancy historic graph but do you really think anyone will sell a house in 50% to asking price. CHANCES ARE SAME AS WINNING LOTTO.
‘What is worth’ is inbetween the price you pay and the ‘amount he wants’.
Beware you are trying to catch a falling knife and WILL BE RESPONSIBLE FOR DECISION YOU TAKE.
(But pity, we all have to suffer and pay XX for those wrong decisions)

I’m inclined to agree. The yield will be useful for valuing property but only when rent is stable/not falling.

Yield is a useful indicator for working out what you’d be willing to pay.
If the price you come up with doesn’t correspond to what you can get it for, the message is keep waiting.

It is not only about return on investment, it’s also about comparing the cost of buying to the cost of renting the same property.

At the moment a three year fixed deal is 3.19% according to Daft.ie
At E300,000
Your monthly repayment is E1185.
Your annual mortgage payment is 1/21 of the house value - there’s your yield multiplier emerging.
If you can rent it for that amount, without incurring the maintenance costs, the solicitor fees, the stamp duty, the financial risk of buying, why on earth would you buy it?

If it’s going to cost you E1,500pcm to rent it then maybe you should start thinking about buying it instead.

That is why this property will continue to fall. Why take a yield on a property that is less than that paid in the post office? In the past it was sort of justified by potential capital appreciation, but that is now gone. Yields should be a few % above bank deposits rates, say 7%. I cant see this property been worth much more than 300k in two years time.

Yawn. When people buy a family home like this one, they are not thinking about yields. Try to think outside the box lads and lassies.

I’ve said that SO MANY times, but still they trot out calclations based on square footage and yields. NO ONE thinks like that when buying a family home.

Purchasers are more interested in how close the schools are, how easy it is to get to work, how safe is the neighbourhood, how close are the shops, what people are like in the area, etc. Notice how many things revolve around the (future) kids, and not “yield calculations”.

This just you feeding your appetite with the comfort-food of calculations, giving you reasons not to bit the bullet and buy for yourself, excusing yourself into further retreat into your comfort zones.

Time to grow-up kiddies…

Nobody says they do. The yield calculations are intended to put some sort of ballpark price on a property rather than “If you love with it with your heart go for it” crap you suggest.

If people want to overpay for property they can and will. But first they have to know they’re IF overpaying for it and then decide if they want to do it. Yourself and crashandburn seem to hate it when people are told if they are.

a) I have never advocated buying property simply because you love it. I have simply stated that there is more to valuing a property than calculating the rental yields (see C&B’s references above).

b) Who are you to tell people that they are overpaying. We all attribute different values to things. That is human nature and one of the vagaries in our makeup that keeps life interesting.

Furthermore, before I retire for the night, if we were all to live our lives on the basis of balancing the books it would be a very dull world indeed.

Indeed! Would you mind declaring your status. I know it, but just remind the listeners.

What do you mean by ‘status’?

172.5k no more no less would be my offer here

Still waiting for a reply.

Ivor Lot wrote

I’m still waiting for your explanation. You can’t make a statement like this and simply walk away.

I have no idea why some people want to categorize all Pinsters as un-propertied.
My status is home owner (since 2000) with family looking to eventually trade up - along with many others on 'Pin.

Regarding query replies, Pinsters valued the property as an asset class and naturally derived a valuation (as asked by the OP) using it’s probable yield (taking into account possible cost of finance changes).
One could also use other methods (compare to similar international markets / compare to historical averages).

Sometimes Pinsters refer to other considerations (schools / amenities etc) but usually only in an area they are familiar with.

For example I would comment on my area if someone queried a property as a family residence.

I like these threads.
Even The Welcome Guest’s mystic contributions who floats albatross-like above us.