Indo: Bargain price tag of €3m for 30 apartments

I couldn’t find this property on the HTOMR website. Any idea where to find it?

That story has got it all!

Total borrowings more than full market value of properties.

An unfortunate fire! Weren’t they very lucky it didn’t spread upwards and engulf the entire block.

Hmmm.

And even a link to Liam Carroll and Noel “I won’t make a penny out of this” Smyth. You couldn’t write a book…

Assuming rent of €700 per month per apt.

€700 x 12 months = €8,400 per annum.

€8,400 x 30 = €252,000 total annual rent roll.

€252,000 / 3,000,000 = 8.4% yield

Appears to represent good value, however my calculations don’t take into consideration how much it costs to repair the fire damage, stamp duty or any other necesary expenditure.

IRA Property Developer. Talk about a double whammy!

And a receiver called Martin Ferris. You couldn’t write this stuff.

The fire in the Car Park was a nice touch.
You’d think these guys would know who to pay to protect them from accidents like that.

-Rd

More on Tom McFeely at:

timesonline.co.uk/tol/news/w … 788684.ece
tribune.ie/article/2009/jul/ … m-mcfeely/

Shouldn’t you be working off a 10 month factor - to take account of insurance, management, property tax, gaps, repair?

Was it Tom Clancy who said, ‘The main difference between fiction and reality is that fiction has to be believable’?

€700 PM for two bed apartments sounds a little conservative?

In Mulhuddart?

Probably optimistic in the medium term.

12 months is correct for Gross Yield but you’re write for Net Yield.

I’m pretty sure you’d end up getting stiffed for protection money by the previous owners though. Say €10000 per month.

(700 x 10 x 30) - (10000 x 12) = 132,000

132,000 / 3,000,000 = 4.4% Net Yield.

Also €700 is fine for the rent considering the dodyg area, although it would likely be rent allowance tenants in which case you’re at the mercy of the ever increasing hole that is the government finances.

Not so good really.

€700 a month per apartment sounds about right, if a little high even. 10 times rent roll is a good yardstick, which would give you a purchase price of €2.5m. Subtract a month for voids and a purchase price of €2.3m could work.

Maintaining and running a 30 unit building in Mulhaddart would not be for the faint-hearted and definitely not amateur landlord territory. You’d have your work cut out for you!

The important point here is that if ACC push more properties such as these onto the market, what will the outcome be? NAMA is going to take along time to set up and get into gear. The more of these that occur the better.

Setting aside one of the one beds for an on site building superintendent, as in the US, would be a good idea. They get the apartment rent free in return for being the eyes and ears of the landlord, doing a bit of handyman work, and acting as the interface and first point of contact with tenants.

The interesting thing is block sale. They wont be shifted on even at that price so you are looking at renting them. It’s a bad area, so you’re looking demanding higher yields. If there was a chance of shifting them on, it might be ok a deal, but to keep and rent them all, it’s a bad proposition.

The big question for me is how the hell could you squander 6m on this? No way the costs could have been that high even in bubble times

Just because 6m was secured against it, doesn’t mean 6m was invested into it.
Some would be interest, but then there’s the released for other business ventures.

€6m would barely get you started in the tobacco wholesale business.
It’s amazing how quickly the costs add up.

-Rd

Presume its a different Martin Ferris to the IRA Martin Ferris - wouldn’t like to see how they recover debts!

I heard that they are making a new Mad Max 4 movie and shooting will commence shortly.

George Miller need not worry, with all the empties around which will be vandalised and rampaged there will be ample areas to film.

Suzanne Breen did an interview in the Turbine with McFeely over the summer.

Seems a decent skin to me, though he’s clearly been mixing with the wrong sort of people … since he came Dublin, that is.

And pragmatic too:

:laughing:

Something tells me he’s about to get a whole lot more committed to socialism.

-Rd