Anyone else caught with apartment in Carrick-on-Shannon ?

bobsoap05 said:
Dear Rabbit, The one thing a property investor should consider is rental income and its ability to cover the mortgage, bils, fees etc. You should never presume that capital growth is a sure thing.
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I know that : I never presumed that capital growth was a sure thing. However, given that the rest of the country, esp the greater Dublin region, has enjoyed massive capital appreciation in property prices, its just a pity that the apartments which were 140,000 odd in Carrick 34 years ago are still worth that, and the apts worth 178,000 odd are still worth less than 190,000.

Too many ( often ugly + badly designed ) apartment blocks were built by greedy developers after the tax incentive scheme was extended by the govt. time and time again, while not enough new employment came to town. Basic supply and demand.
 
No one forces anyone to buy a property - the buyer decideds to buy it so I think its a bit off to blame builders for building ugly appartments - you should blame the buyers for buying them!
 
If I were you I'd bite the bullet and sell. There were many reasons that property prices in Dublin rose. 1. A shortage of suitable land. Various parties has built up significant land banks over the years and only released them in dribs and drabs. 2. Increased population and jobs. 3. Low interest rates.

At the moment you are selling with a tenant in situ and this will add to the value of the property. Reading this thread and having passed through Carrick several times it is easy to see that there is an oversupply of apartments in Leitrim. This situation is unlikely to change in the forseeable future.

What happens if your tenant decides to move for whatever reason. You could be servicing that debt with no income from the property and could be forced into a distressed sale. If, for any reason MBNA decided to close down or relocate you wouldn't be able to give property away down there, especially with such high service charges.

Are there more apartments going up in the town? There is always going to be limited demand in a small town. Once this demand is satisfied there is only one way prices can go.

My advice is get out now while you can more or less intact. Then again I have always been a pessimist.
 
Am I the only one stunned at the thought of annual management fees of over two and a half times the gross monthly rent!?
 

are you sure about the Castlebar rental? reason I ask is several people I know are renting in Castlebar including my niece and all are paying 585 or more rent for a 3 bed semi also I know houses in the Balla area which is 20 mins drive are getting at least 585 rent per month again 3 bed semi
 
My vote is sell too. The yield is lower than interest rates, so with vacancy and other fees this apartment is a net liability. There are no great prospects for yields to increase in the medium term in this area. With rising interest rates there is a chance that in a stagnant market, it will take time to shift down the line. It can take a bit of courage and conviction to admit to yourself you made a bad investment and cut your losses (which are not huge) but it is a good trait for an investor to have.

The flipside is you can release the money you have invested and now start to make it work for you elsewhere.

Theres no harm in putting it on the market right away, there may be people holidaying there over the summer, and I think it would fetch a better price with the sitting tenant. Youi will be selling to someone who wants to use this as a tax write off. Make sure to factor the S23 tax clawback into your figures if it applies
 
badabing you are not comparing like with like re deposit rates is rabbit has a mortgage on the appt due to the leverage effect.
Castlebar.....number of friends let houses and to ensure no vacancy cannot go above 550-600. There seems to be a glut in castlebar.
Funny enough rural areas get similar or greater rents in mayo!
I think people want to get out of estates in cbar or ballina?
 
markowitzman said:
badabing you are not comparing like with like re deposit rates is rabbit has a mortgage on the appt due to the leverage effect.
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I'm referring to mortgage interest rates here not deposit rates
 

Agreed.

Commuting is so easy, young people will rent in their own towns before building their own homes, that is the typical trend.

Have had 3 sets of tenants over last 8 years, all 3 did the same...rent out whilst building.
This is in a rural town, and the rent would be approx 10% more than similar house in Castlebar/Ballina
 
So you have a place "worth" £180K and you are currently achieving 3.33% rental yield. Not good.

Many other properties are nearby. One day your tenant will wake up and smell the coffee. Their next point of action will be to you telling you that unless you drop the rent to say 400 then they are off.

It appears you bought an overpriced place. It happens. You state you didn't count of capital growth? Then why buy the place?

My advice is sell.
 
..cannot disagree with the Smi1er. In the short to medium term it is unlikely that the rental income will increase to a level whereby the property will generate a reasonable net income. More importantly, if the value of this property has not increased whislt the rest of the country has seen an unprecedented boom - what do you think will happen when the market calms down (or God forbid - even falls a little)?
 
soma said:
Am I the only one stunned at the thought of annual management fees of over two and a half times the gross monthly rent!?
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No - pure lunacy
 
The lift, lawns, rubbish disposal, block insurance, cleaning of common areas etc has to be paid...that said , I suspect the management company are doing ok for all they do. Nice little earner for buddies of the auctioneers. Anyway , in fairness, annual management fees of 1300 euro would be considered a bargain in parts of Dublin would they not ?
 
This post will be deleted if not edited immediately my management fees are only 350 p/a maybe this is a title thread for the cheapest and dearest management fees
 
Anyway , in fairness, annual management fees of 1300 euro would be considered a bargain in parts of Dublin would they not ?
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Yes, but you're not in Dublin. (You're also not getting Dublin appreciation or rental return)
 
gordongekko said:
This post will be deleted if not edited immediately my management fees are only 350 p/a maybe this is a title thread for the cheapest and dearest management fees
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Your management charge includes lift, lawns, rubbish disposal, block insurance, cleaning of common areas, common area electricity inside and out, etc ...all for 350 euro p.a. ? Where in the country is that ?
 
Just as i said months ago , the amateur buy to let crowd are running scared . Its people like this that have been jacking up prices to artificial levels for years and creating this two tier society we now live in.
 
So wolfie, you think no investors should ever have invested in property to let out to tenants ? Better the so called two tier society we have ( where at least most people have a reasonable standard of living ) than those societies where no investors were allowed to invest in property.

Do not forget the govt wanted investors to invest in places like Carrick-on-Shannon - otherwise why grant them section 23 status.

As regards "amateur", I had other investmests ( inc property ) before Carrick. My accountant handles things like capital gains tax , income tax etc professionally - he would want to for the fees he charges.

Prices in Carrick are not really "jacked up" - where else would you get a fine modern apartment for only 140,000 ?
 
rabbit said:
Prices in Carrick are not really "jacked up" - where else would you get a fine modern apartment for only 140,000 ?
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You'd buy a fantastic apartment in the better areas of Budapest for that type of money.
 
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