Monday 21 October 2019

Rental investments among 100 lots up for auction in Dublin and the regions

Up for grabs: Coopers Yard, Smithfield, where a two-bedroom apartment is available at auction
Up for grabs: Coopers Yard, Smithfield, where a two-bedroom apartment is available at auction
Up for grabs: a ninth-floor apartment is up for sale at the Riverpoint development in Limerick
Donal Buckley

Donal Buckley

MORE than 100 lots, including tenanted residential investments, will be offered for sale in two public auctions hosted by Real Estate Alliance (REA) agents this month.

In contrast to the private treaty market, where all individual residential properties are vacant, REA Dempsey Sothern will feature lots where tenants are paying rent.

Not only does this sales approach enable the vendor to avoid the risk of making tenants homeless, but it also means vendors avoid the loss of rental income while waiting for the sales to be processed. It also speeds up the process for banks when selling buy-to-let investment properties, as they don't have to wait for the expiration of a tenant's notice to quit or for a long, drawn-out conveyance to complete.

From a buyer's perspective, it enables them to compare real-time prices in terms of rental yields, plus prices per square metre. This contrasts with the Property Price Register, which does not provide information on the size of a property, and its prices may not be published until months after a price has been agreed.

The earliest of REA's public auction will see more than 41 Munster, Connacht and Donegal properties auctioned by REA O'Connor Murphy in the Limerick Strand Hotel next Thursday, July 11.

The bigger auction will see about 65 Dublin and Leinster properties auctioned on July 23 at the Killashee Hotel, Naas, Co Kildare, in a Dempsey Sothern sale.

The Munster and Connacht lots include six houses in the tourist town of Kenmare, Co Kerry. Of those, four are holiday homes at Ceann Mara Court, Gortamullen, which will be offered in one lot with a combined guide price of €468,000 or an average of €117,000 each. If they fail to attract a single buyer, they will be offered individually at the €117,000 average AMV.

Located in a terrace at 1, 2, 3 and 4 Páirc Na Gloine, they comprise three three-bedroom houses of about 106 sq m and one four-bedroom house.

One of the commercial investment properties in this auction is 7a and 7b Annacotty Village, Co Limerick. It has a €148,000 AMV, which is a reduction of €37,000 on the AMV quoted for it when it was offered for auction earlier this year. Extending to 187 sq m, the property is in two units which generate combined annual rent of €18,000, suggesting a gross yield of over 12pc. Its occupants operate a sports physio clinic under the name IMST (Institute of Massage and Sports Therapy).

Among the Limerick City lots is the two-bedroom Apartment 907 Riverpoint, which has a €170,000 AMV. Extending to 60 sq m, its ninth-floor apartment level offers views over the city. With rental potential of €12,000 a year, this suggests a gross yield of about 7pc.

At the Dempsey Sothern auction, the most valuable commercial investment is a mixed-use terraced property 1A Castle Crescent, Clondalkin, Dublin 22, which has a €315,000 AMV.

It currently generates rental income of €1,700 per month from both a hair salon which occupies the rear of the ground floor and a solicitor's office on the first floor. If the vacant retail unit on the ground floor were let, it could have potential for rental income of €35,000 per year. It also has parking to the front and a yard to the rear, with development potential.

A residential investment property at 118 North Strand, Dublin 1 has a €275,000 AMV. With a total floor area of 160 sq m (1,722 sq ft), it is laid out in four residential units which generate a combined rent receivable of €45,966, suggesting a gross initial yield of about 16.7pc. This mid-terrace re-brick house is convenient to Fairview, the IFSC and the city centre.

Among the tenanted investments is a one-bedroom first floor apartment, 100 Smithfield Village, Dublin 7, which has a €195,000 AMV. It generates annual rent of €15,000, suggesting a gross initial yield of almost 7.7pc. With a floor area of 45 sq m, this equates to €4,333 per sq m.

A buyer who can afford to pay more may get better value from a neighbouring two-bedroom unit at 44 Block E, Coopers Yard, Smithfield. While it has a higher AMV of €255,000 AMV, this equates to a lower capital cost of €3,923 per sq m due to its larger floor area of 64 sq m (700 sq ft). However, with its current rents of €1,463 per month or €17,556 per year, it has a gross annual yield of less than 7pc.

As well as being close to the city centre, Smithfield adjoins Dublin's legal district including, the Four Courts, the Law Society offices, and Court Services.

On the south side, near the Royal Hospital, Kilmainham, Dublin 8, a two-bedroom ground floor apartment, 32 Block 3, Bow Bridge Place has a €220,000 AMV. It generates annual rent of €14,400, equating to 6.55pc. With a floor area extending to 60sq m (645 sq ft), this equates to €3,666 per sq m.

Among the Dublin houses for sale, the most valuable is a four-bedroom mid-terrace house, 13 The Paddocks, Adamstown in west Dublin, which has a €310,000 AMV. Its floor area extends to 107 sq m (1,152 sq ft).

A vacant two-bedroom first floor apartment at 24, Block 2 Parklands, Northwood, Santry, Dublin 9, has a €215,000 AMV. With a floor area of 79 sq m (850 sq ft) this equates to €2,722 per sq m. An attractive feature includes a south-facing 'L' shaped balcony, which wraps around the corner accommodation. It also has a secure parking space.

In Dublin 6, a vacant one-bedroom apartment at 1 Charleston Heights, 20A Charleston Avenue, Ranelagh, has a €170,000 AMV. With a floor area of 36 sq m this equates to €4,722 per sq m, but it needs modernisation and would only suit a cash buyer. If it were to rent for €1,500 per month, this could equate to an initial gross yield of 10.5pc.

The most valuable lot in this auction is a five-bedroom detached house on a one-acre site, with a back garden leading directly to the River Barrow. Known as Barrow House, Kilkenny Road, Co Carlow, it has a €550,000 AMV. It is on a secluded site set back from the main road.

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