Irish Times admit Canny was suckered in foreign property


#31

Leave it out lads - he might read the PIN


#32

I could forgive it all but the jumper… Mind you, I had a pair of dockers that got a splash of bleach on them about one week after I bought them and still resolutely wear them from time to time, could have been a similar situation! But a photocall?!? :laughing:


#33

corcoran.com/property/listing.aspx?Region=NYC&ListingID=1084569

(Great site for browsing NYC property BTW, and many times I have looked over Tony Montana mansions in Miami!)

They list the monthly payments as such:

Mortgage Amount: $702,000.00 Down Payment : $78,000.00 Mortgage Payment: $4,437.00 per month Total Monthly Payment: $5,098.00 (with maintenance & taxes)

Property tax is $663/month. That is with 10% down.

Here are the current rents for 13 studios in the Financial District:
corcoran.com/property/search.aspx?Region=NYC&RentSale=RU

So at best he could get $3k/month. That’s a big shortfall of ~€1400/month = a lot per year!

With such a big downturn now, this is a very different situation to paying up €400/month for a flat in Sunny Beach, which won’t sell or rent (or hopefully fall over). I don’t know a lot of people that could cover the guts of €30k/year of gross earnings to support a rented flat in the US for 30 years.


#34

Ah jesus love him, they’re chatting about him here too: streeteasy.com/nyc/talk/discussion/4116-manhattan-rents-are-going-to-fall - I’m mortified for the poor bugger :blush:


#35

oh man. The poor guy prolly thought that NY was like Dawson St, where the stockbrokers would head next door to Cafe Insane or Ron Blacks to wind down after making a killing or two in the sales pits.


#36

Maybe it was an xmas gift!

:angry:


#37

He could be the next star wars kid.


#38

As suggested earlier the american investment was perhaps less risky than a similar BTL in Ireland.

Keys back to bank.

Cheerio.!!! Would it almost certainly be financed by a us bank?


#39

Thought you might like an update on the orange-jumpered one and his $760,000 Manhattan studio.

The first resales and rentals of this newly-completed building have hit the market. It’s hard to get exact comparables but a same sized 550sq ft studio on a similar high floor is selling for $660,000. After buying and selling closing costs, 6% broker fee, property transfer taxes and carrying costs, I reckon Kenny would be out about $180,000 if he had to sell today.

As far a rent goes, an Irish Times article said he was told he should get $3,500-$4,000 a month for it. Well guess what there is a colossal glut of new construction in the financial district and rent was never going to be anywhere near that amount. Here is a similar unit in the same building for rent at $2,300 a month. From this you have to deduct $660 monthly common charge and 10% managing agent fee leaving you with about $1,400 a month net to cover your $3,000+ interest only mortgage, presuming you can even rent it.

What pisses me off is that the IT article was only written in April yet it couldn’t be more bullish and makes out like the guy is on to a sure thing!!

So he’s in the unenviable position of taking a six-figure hit now or trying to wait for a recovery while sinking another $1,600+ every month in to the apartment. Savvy indeed.


#40


#41

why was my post deleted?


#42

Glee. And have a yellow card for your troubles.


#43

Wonder what 2gaffs would make of this.


#44

he would say: consolodate all mortgages on rental properties on a 100% interest only mortgage and put the rent into a high yielding 8% geared fund.


#45

It’s America, so he can probably just walk away and let the banks foreclose.


#46

By an Irish one I would have thought with his PPR as security.


#47

How is his gaff in Meath supposed to be worth more than an apartment on Wall Street?

Incidentally, I had occasion to visit that area just the other week, near Kenny’s apartment. It’s pretty dead at night. I don’t think he’d get much more than $2,500 per month there for a studio. My friend rents a huge two bed on the Lower East Side (where I’d much prefer to live) for about that.


#48

Off topic but yesterday I heard an anecdote that a property which had been purchased in south dublin for over 10 million was put on the rental market and has now been rented out. the rent achieved was 3k per month. I suggested that if you were to value the property based on a 5% rental yield it would suggest a real market value of around Eur720k

The resulting shock of those I was speaking to was palpable.


#49

lol why earn €500k interest, risk free hassle free every year, when you could make €36k rent instead. (assuming no voids)

0.36% gross yield. At least the tenant is canny.


#50

The PPR now shows up as sold in Daft, I wonder is it really ?

daft.ie/searchsale.daft?limit=10&type=sale&id=263608&from_mydaft=1