Anyone who is suggesting that this place can be bought for €140K needs their head examined.
Rathmines is hitting over €300 ft2 without difficulty at the moment, and you would be lucky to buy in at that price.
I used to think there were a lot of shrewd people on the pin, but I’m starting to suspect that it attracted the perma-bear types who were right … until they were wrong, and may be right again some day, but only in the ‘stopped clock right twice a day’ manner.
And anyone scoffing at 6% yield should stick their head in the global equity markets for a few months and feel the fear. It can be done, but the risks are high.
The place is worth €250K for sure - how much more is a harder call, but it will go above €290 and maybe more I’d bet.
Far from bing a perma bear as you put it I have only recently bought a property in D15 and will buy again,I bought it because it was priced well and the yield was attractive,the property on at €325 is way overpriced ,its an ugly property that holds zero appeal to me because of the price,no doubt they will be queuing round the block with loan approvals in hand trying to snag this beauty but for my money that’s as much as its worth €140k,no doubt it will go for more,this is just indicative of whats still wrong in the property market.
This type of property is purely for the investor type and cant see to many of them getting excited about it either unless they are the type that has a huge lump sum burning a hole in their pockets.
Time will tell.
I would bet any amount on properties like this never selling for €140K again in Rathmines.
You are implying that property in rathmines will regress to absolute price levels of perhaps 15 to 20 years ago. This will not happen without a full on catastrophy happening (in which case, if you believed that, you should be buying gold not bricks).
Out of interest I had a quick look at rentals in Dublin 15 (not sure which part) vs Rathmines (and D6 overall). The rental prices were actually not as far apart as I expected, but the supply is dramatically higher at the same price point in D15. My conclusions is that rents are significantly too high out there (both on relative terms to D6, and vs average incomes) which I believe will adjust so that rents will be forced down in D15 and the outer ring, and that yields will equalize by this mechanism.
As a rule, (and I’m not a landlord and am not particularly enamoured of property investment), it should be easier to extract yield at lower prices, but running a spreadsheet, I would expect that the excellent consistent demand in D6 should reduce costs by limiting down periods and turnover and smooth out the income. But that’s not my area and there are loads of experts on it here.
Whatever way you want to cut it, you could sit watching this property for 25 years and it will never be available at €140K.
only a small handfull of quality utility and telecom companies pay a dividend in excess of 6% , vodafone is the only one i can think of , france telecom ( which i own ) pays 10 % but its share price is down about 70% in the past ten years and has seen no recovery since 2009 , a huge company but no growth prospects at all , banco santander pays 10 % aswell but to say you need a strong stomach to own a spanish bank is an understatement , stock is down about 40 % this past few years , you can earn betwen 6 and 10 % on streesed debt but again need a strong stomach
im not saying property is the best way to go , i actually believe having most of your money in the S + P or a good etf which tracks emerging markets or even irish companies like paddy power and kerry , is a better way to build wealth but a small amount of property is no harm to add balance , this business of demanding 10 % as a given in buy to lets is pure codswollop , its noise which is easy to make , i could get 10 % on an appartment in dublin but id have to buy somewhere like here and bar having to wade through junkies , what if any capital appreciation is their hope for
ps , what do you think that 3 bed down from lower rathmines road might fetch PM , agent told me the vendor was getting 1600 but im thinking between 1300 and 1400 at best ? , im not actually going to even bid on it btw , were i to buy a house right now , it would be in stoneybatter , yields of 6% minimum and the place has a lot of charm around the old neighbourhoods
context , was replying to an earlier poster who refered to a property as lacking charechter , ironically the same poster spoke of the importance of only focusing on yield
your post makes a lot of sense btw , just one thing though , if charechter and how posh the location is , matters so little , why are appartments as an investment being dismissed out of hand with such certainty everywhere i go , appartments always give a better yield , seems some people are still stuck on appreciation potential rather than yield
I agree with Rathminer, I cant see it happening unless capiltism collapse, if a house like this in Rathmines is worth 140K, what is a 1 bed appartment in a less disiarble suburb of dublin worth? whats the national average house price worth? This house is a 10 min or a 5 min cycle to the green, also close to rathmines village, your just not going to get a house, even if only 850 sqft for 140k there. I also agree about the rents, and I belive that dublin city rents are already gaining relative to outer suburban rents.