Re: Re: Dublin Apartments
Differentiation between new build and redivision of period properties is a good point; the classification pre 63 houses as exempt from planning even though they were in many cases sub-standard flats was to my mind a major mistake on the part of policy makers over the years.
I would hazard a guess that the banks are sitting on a lot of non-performing loans in this niche area. What I bought was an upper floor of a regency stucco terraced house; its tenanted and rents in the area are rising double digits annually so I’m happy to leave it as is collecting the income; question is can the Irish banks afford to do the same with large numbers of pre-conversion properties in D6 / D8 / D7 which if the governemnt got tough on the level of housing benefit would see room rates plummit.
Putting these floors into single units versus 3 seperate bedsits per floor would in all probability see a higher value sold into the market than the 10% – 12% yields these properties are now selling for. When I want the flat to sell I will want a buyer to actually want to live in it so it will become a 1 bed but in a functional rental market it is different until such time as you want to think of it as a capital versus income exercise. When there is no investment market you need to rely on people buying to occupy.
A major opportunity for architects in this area to create value…..