I remember looking at this place when it was up for rent and it was up for a long time, the asking price was €4000 a month with Owen O’Relly. Calculating this using rent multiples brought it to 800,000 at best: 4000 * 10 months * 20 years.
I’m not asking coz I’m thinking of buying, I wish. But with a place like this can you really apply the normal laws of property economics, for some of us yes but surely there will always but somone out there with enough cash and desire to buy it.
The so-called normal rules for investing on the basis of yield don’t apply here. Neither do they apply to luxury properties in L.A., Chicago, London or Milan. Those rules are based on comparisons to bonds. They work well for mass-market type properties.
For a start, purchasers of these properties are buying them to live in them, not to rent them out. They are hoping for tax-free capital gain over the lifetime of their ownership but that’s really a secondary or even tertiary consideration.
They are lifestyle purchases, nothing more, nothing less. Valuations are whatever premium a lifestyle-obsessed gobshite is prepared to pay for it.