Friend is set on buying house in this estate for investment and income stream to top up pension (has retired early). Trying to dissuade him but to no avail. Property is three bed mid terrace and the price is €400,000 - my question is, is it a good deal or is he paying too much for it? Any comments greatly appreciated.
Charlemont Estate, Griffith Avenue.
- Thread starter elainem
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early bird
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Why are you trying to discourage him? Personally I think that sounds like a good price for that location!
The OP's friend sounds like he is buying it as an investment. I doubt you would get enough in rent around there to cover the mortgage on a €400,000 house.
Elainem, you're right to question this with your friend. Has he worked out the probable yield on the property? Has he factored in vacant periods? Maintenance of a rented house? The Marino Institute has recently built a lot of student apartments behind Charlemont, which I'm sure has reduced the supply of willing renters in the area. In addition, Griffith Hall right beside Charlemont has a lot of apartments for rent in it.
It is very likely in the current market that your friend, far from having an additional source of income, will instead have to subsidise the mortgage each month. Investing in property, particularly now, is far from a risk-free proposition compared with putting the money in a good deposit account.
culchieindub
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also has he checked out the area well. It is an area for flooding.
Hi! everyone, thanks for your replies. My friend told me this morning that he sent back the contracts yesterday. He is buying the house for cash, no mortgage. Feels the interests rates will go down again and the sum he got for accident will be eaten away. He is looking for a long-term income stream. Retired at 50 last year. Told him that I felt they would drop further, but he said he didn't feel that that particularl estate would drop. Also mentioned about new apartment which have been build in the Charlemont estate, which might affect his rental potential, but he said he put an add on daft offering the house at €1,400 per month and had over 100 calls. Culchieindub, I mentioned the issue of flooding to him. He said he thought it was down nearer the Tolka River that was affected, but would check out insurance premium's for that area on Monday - but a bit late now that he has signed!!
I also mentioned the BER rating to him, and the fact that he would have to get it rated in Jan if he wanted to rent the property, and that this was about €300.
Another friend of mine thought there was something coming in about how many bathrooms you had to have per no. of bedroomsm in relation to letting a house. She couldn't remember where she saw it, but I told him about this also. The house only has one bathroom.
Thanks again for your replies.
I also mentioned the BER rating to him, and the fact that he would have to get it rated in Jan if he wanted to rent the property, and that this was about €300.
Another friend of mine thought there was something coming in about how many bathrooms you had to have per no. of bedroomsm in relation to letting a house. She couldn't remember where she saw it, but I told him about this also. The house only has one bathroom.
Thanks again for your replies.
culchieindub
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welcome elaine.Hope it works out for him and maybe he's right that it is a different section affected by flooding.I have no idea what happens if you want to pull out after a contract is signed.Think solicitor is best for this advice.
Incorrect. It's a little irresponsible to be posting information about an area you don't know very well. Recently minor flooding occurred at the junction of Griffith Avenue and Ballymun Road, which is about 1.5km or more away from Charlemont. The flooding that occurred at the Tolka is about 2km away, and geographically quite separated from Marino. Also the estate is located on a fairly steep hill, and in reality is closer to Clontarf and Fairview than it is to Drumcondra and Glasnevin.
Rented here a few years ago and it's a nice spot, was handy for using the Dart park and ride in Clontarf. Seemed to be a lot of owner occupiers, but was also popular with trainee teachers in the Marino Institute of Education. When I was there I think 3 bed semid houses were fetching around €650k. So prices have obviously fallen here considerably already. The figure you mentioned doesn't sound too much in comparison. The only thing I would say is that the terraced houses looked very small compared to the semids, especially the gardens. Not sure if that would affect the rental potential.
Elaine I'm pretty sure the bathroom rule applies to bedsits and shared houses with a very large number of occupiers. Remember that the vast majority of 3 bed houses in Dublin only have one bathroom, especially anything built before the late 90s!
culchieindub
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Personally I don't think it is irresponsible. I think everyone should check an area to see if it is prone to flooding before buying.Griffith Avenue was one area mentioned.Many parts of Dublin have been affected this year and is good common sense to me.
Of course checking if an area is subject to flooding is sensible. Every buyer should consult the website no matter where they buy. But you definitively said that it is an area for flooding when it clearly isn't. Offering incorrect advice like that is irresponsible in my book.
If you know the area you must be aware that Griffith Avenue is 3.5km long and is one of the longest avenues in Europe. Minor flooding near one end isn't very relevant at the other end. It's like telling someone that Ballsbridge is an area for flooding because there was flooding in Blackrock last year.
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Yorrick
Guest
Talking about flooding in Charlemont estate is giving the impression that it is beside the Tolka. The estate is on an incline and if flooding occurs in Charlemont then the whole of Dublin city centre will be under water.
It is an excellent location for anyone who works on the northside, DCU, St. Pats, Beaumont Hosp. Mater Hosp. Dublin Airport etc and wants ready access to the city. I could not see any problem letting it out
It is an excellent location for anyone who works on the northside, DCU, St. Pats, Beaumont Hosp. Mater Hosp. Dublin Airport etc and wants ready access to the city. I could not see any problem letting it out
Hi! Thanks everyone for all your comments. Glad to here that it is not in the floodplain area. My friend did say that it appears to be a good area for rental as he put an add in daft to see what replies he would get, and he got well over 100 replies. I have seen it and I do think the terraced houses are very samll. Hope it won't affect the rental potential. He doesn't want to go the extra 100k for semi. He is looking for long-term income source. Currently retired on disability grounds, and looking for this income source to supplement his pension later on. Really appreciate all the replies as he is a very good friend who has had a lot of ill health and I would not like to see him make a mistake with his finances. Thanks again.
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Stee
Guest
Hi, just reading your comments about Charlemont off Griffith Ave. I'm thinking of buying a house there myself obviously the flooding isn't an issue but does anyone here have the inside track on what a semi detached house is currently going for ? Asking price varies from Euro 420k to Euro 450K so would be really good to know what the final selling prices are like. Any advise for guidance would be great.
Cheers
Stee
Cheers
Stee
