Kilmainham

I currently own an apartment here and love it but about to move to a house in suburbia (baby more room needed). A builder friend of mine reckons this is the best bet in all of Dublin with property as you can still pick up something cheap and do it up and sell it eventually. I really think it is one of the last underdeveloped places in Dublin and there is so much going on The Hilton has just opened, theres loads of really nice new developments and the Heuston Quarter is being built with another hotel, shops apart etc. Also the Clancy Quay develpment so I think in 3-5 years it might be completely different. Anyway I have a bit of spare cash as does my Dad but we are looking at a little almost derelict cottage. We plan on renovating, renting it for a year or two and hopefully sell. Would do other people think is there any chance to make a profit in this uncertain property market?

Sydney100 said:

We plan on renovating, renting it for a year or two and hopefully sell. Would do other people think is there any chance to make a profit in this uncertain property market?

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Unlike "property ladder" in the uk, the irish market is based on a different method of property valuation, in that the derelict house you buy will not be worth much more when its completed unless your able to strike a very good deal in the purchase. the science behind the "location, location, location" method of irish property vaulation does not generally allow for this type of enterprise.

The market will not see the prices increases of the past again but small increases will happen over time. It is very unlikely you will recoup the money it will take to renovate a house by selling in the short to medium term but through sustained long term rental this type of venture might succeed.

Either way best of luck

I'd tend to agree.

There are two basic problems with the market here.

The first is that houses in very poor condition often fetch almost as much as those in good condition - it's not at all clear why this is the case: maybe people paying a premium to get a blank canvas?

More importantly though the second reason is the high rate of stamp duty and other moving expenses mean that you as you have to cover these before making a profit, the sell price has to be signifcantly and probably unrealistically higher than the purchase price.

It can be done, but it is not easy by any means.