Ballybay property investment

I have a deposit paid on a property in Wylies Hill in Ballybay but am a bit concerned firstly about Ballybay and secondly about property prices in general. The property is purely an investment and is costing €200k, but I have noticed other houses that are fully finished up for sale at €195k. I am not looking for a quick profit and plan to rent out when finished, but reading all the doom and gloom about property prices on this website is concerning me greatly!
Any advice would be very welcome.

Ballywhere?

It's near Monaghan town

€200k!!... i presume for a three bed semi-d? Do you have a link to the selling agents website i'm out of Ballybay some time now but am astonished at that price.

While a grand town to grow up in i can't see the point from an investment point of view. Granted i'm not living there for some years now but bar the construction there's little or no industry/jobs in Ballybay and most people commute to Monaghan or further afield.

Have you investigated the rental market? I'd be very surprised if you'll cover the mortgage with the rental income in that town. A quick check on daft reveals a 3 bed in ODuffy Terrace (a damn site closer to town than Wylies Hill) is going for €600 a month. That wouldn't even cover an interest only mortgage.

(edited to add: have just done a search and found some of those houses, even in a bullish market i can't honestly believe they are worth that. As for Monaghan in 10 mins and Carrick in 15 mins i'd challenge the EA to show you how that can be done! Perhaps he meant by helicopter?)

I was reckoning on borrowing €180k, with a interest only mortgage of €700 p.m. The EA told me that €700 was the going rate for a three bedroom semi in Ballybay and that the rental market was good.

Did you do any research on the rental market other than the EA? They have a vested interest in telling you the rental market 'is good'.

DAFT would suggest the asking rental is around €600 per month

uroman said:

It's near Monaghan town

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I know,I was being ironic. I meant "where" in investment terms.

The property boom in the large centres of population in Ireland has created a kind of acceptance in many minds that property must be expensive everywhere else in the country; lots of builders in small rural places have done nicely selling what are essentially suburban semis in these small places, at prices that don't compare well to the local market. One poster here recently discussed buying something similar in Frenchpark (its a small one-horse town between Boyle and Castlerea, the pits for investment).

The thing to remember in al these cases is this -- don't make comparisons to the Dublin market. Just because you can get 500,000 for a semi in Dublin, it doesn't mean that a semi in Ballyanywhere is cheap at 200k.

lots of lituanians and latvians in ballybay. believe there is even a disco exclusively form them at weekends. dont know if they pay that kind of rent though. whats the rent in castleblayney ( 6 miles away)? know that an estate there called coill daragh is being bought up left right and centre by dundalkies for the rental market. and I just can't see it.

uroman said:

The EA told me that €700 was the going rate for a three bedroom semi in Ballybay and that the rental market was good.

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You're joking surely? And you accepted this as Gospel? As CCOVICH suggests you need to do some independent research about what the rental market is like (and work off the basis of a 10-month year to take account of inevitable down-time).

As you've noted yourself identical properties(furnished) in the same estate are already going for €5k less than you're suggesting paying for a new one. With even the most bullish commentators talking up a soft landing how do you figure on making a profit from this deal?

To the OP

Is this your only property or do you own your own home?
I would have thought that borrowing 90% to finance an investment property is fairly risky.
Have you factored in stamp duty, legal fees and rental costs (furnishings, PRTB fees etc.)?

I was afraid seeing this thread to open it...then i did and i saw wilies hill....You are nuts to buy a property there. It has some pretty serious anti social behoaviour. rent there is 600 a month or less. The reason people live there is because its cheap so you get a house of 3/4 young eastern europeans. the families and eastern europeans that are here to get ahead are all paying a premium to live in monaghan town in better estates. Dont touch this with a 40 foot barge pole. I could have bought one for 155k a few months ago and would still turn it down if the house beside it was 200k. Madness.

Thanks for all the advice guys, phoned up the EA to get my deposit back.
Cheers