# Cavan town



## ABC123* (15 Feb 2007)

Hi
Just bought an apartment 2 mins outside of Cavan town for 180,000. There is a Hospital, college and lots of Business within walking distance, it looks like a good investment.

It is also 5 min drive from Farnham estate which has a 5* Hotel and is currently undergoing major development.

I am hoping to rent out for 600 - 650 a month, anyone any comments?


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## Guest127 (15 Feb 2007)

theres a college in cavan? great town though.


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## ABC123* (15 Feb 2007)

Yes, 3rd level, also romours of a site opposite the general hospital has been sold for a private hospital to be built, and the dept of marine arem oving there as of 2009


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## Welfarite (15 Feb 2007)

Isn't  there a plan to decentralise civil service posts there in the near future? If so, sounds like a good investment.


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## beattie (15 Feb 2007)

What is the rental market like there? Is there many new units to come to market down the road? Are rents actually rising in Cavan at all? I am not sure I would be banking on this decentralising lark, I think many have being disappointed with the uptake but hopefully it takes off.


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## ABC123* (15 Feb 2007)

Current rent prices will cover the repayments, I am not in this to make a quick book.

There is a good demand for renting at the moment


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## Madilla (15 Feb 2007)

There is a glut of rental properties in Cavan Town at the moment - A friend has rented his new three bed  house for €500.I know of others who are just unable to rent their houses. Property prices seem to be pretty static.My friend spoke to EA about selling and was advised he is unlikely to get much more than he paid for it in September 2005.As you know prices are very reasonable but this is because of the supply outstripping demand.In terms of the rent covering repayments you must have contributed a substantial amount from your own funds even if you are on an interest only mortgage.


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## beattie (15 Feb 2007)

Madilla said:


> There is a glut of rental properties in Cavan Town at the moment - A friend has rented his new three bed house for €500.I know of others who are just unable to rent their houses. Property prices seem to be pretty static.My friend spoke to EA about selling and was advised he is unlikely to get much more than he paid for it in September 2005.As you know prices are very reasonable but this is because of the supply outstripping demand.In terms of the rent covering repayments you must have contributed a substantial amount from your own funds even if you are on an interest only mortgage.


 

That seems more in keeping with what I have heard of mid size towns in Ireland. I can't understand where the demand is going to come from, one of the major selling points of towns like will be that the commute to Dublin will be somewhat bearable once the motorway upgrade is completed in 3/4 years causing people to move out of Dublin but apart from that the outlook wouldn't seem that rosy


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## Remix (15 Feb 2007)

Welfarite said:


> Isn't there a plan to decentralise civil service posts there in the near future? If so, sounds like a good investment.


 
This plan was extensively covered by the media so it's likely this widely known prospect is already speculatively priced in.


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## money man (15 Feb 2007)

you can buy a 3 bed semi walking distance from town for 215. Seems like better value. Madilla is correct . Glut and i mean glut of properties to let there. I am aware of many ppl who bought houses there never even furnished them. they just let them sit and have never rented them. When these are sold or rented it will further add to problems. Rents of 550-600 for  a 3 bed are probably average there and im not sure how that covers a mortgage to be honest .!


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## beattie (15 Feb 2007)

money man said:


> you can buy a 3 bed semi walking distance from town for 215. Seems like better value. Madilla is correct . Glut and i mean glut of properties to let there. I am aware of many ppl who bought houses there never even furnished them. they just let them sit and have never rented them. When these are sold or rented it will further add to problems. Rents of 550-600 for a 3 bed are probably average there and im not sure how that covers a mortgage to be honest .!


 
Are many of these units which were just left for capital appreciation now appearing on the market? If they are it will make it far more difficult to get tenants.


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## money man (16 Feb 2007)

Beattie, I cant say with any great authority other than people who bought for capital appreciation and who bought multiple units (which i have experienced) will probably have to reasses their position in a climate of increasing interest rates etc where they find that they are paying much higher repayments than they had initially paid. Also they may have opted for interest only periods of 3 years etc which i believe bank of scotland ireland do regularly. coming off such a deal would significantly change their situation and repayments.


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## aaa1 (16 Feb 2007)

I agree with the above posts, there is a huge glut of rental properties in Cavan town. There might be a college but it's small and the majority of students are from the town or surrounding areas so most travel there daily. The hospital provides some renters but seeing as there's going to be a new regional hospital built by 2012 (no site confirmed but likely to be Ardee or thereabouts) the number of staff will fall in the future. Also, if you drive out the bypass, you'll see that builders are literally throwing up scores of new houses every week. You may have gotten a good price on the apartment but if you check the local paper you'll see that it's full of properties for rent. I'd advise you to drop your rent if you want to guarantee tenants.


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## auto320 (16 Feb 2007)

Welfarite said:


> Isn't there a plan to decentralise civil service posts there in the near future? If so, sounds like a good investment.


Risk in this from an investor point of view is that (a) it is not attracting support among Civil Service staff, and (b) any change of government might result in a watering down or even a reversal of the policy.


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## Spondulicks (16 Feb 2007)

1. What is the labour market like as evidenced by the local press? That will give you a good indication of the trend in demand. 
2. How has the population moved in Cavan according to www.cso.ie?
3. How much land is zoned for residential development?
4. Can the local authority tell you about housing starts and completions over the last few years.
5. What is the size of the labour force locally and who are the big employers who drive economic activity?

Never mind the fluff from estate agents , look at the underlying drivers. Everything else is just speculation and wishful thinking.


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