Monday 19 March 2018

Ghost opportunity for €150k

Donal Buckley

IF YOU ever dreamed of becoming a property developer you could get a head start of and it would only cost you €150,000. A batch of 63 houses in various stages of completion will go for auction next month with a combined guide price of only €150,000. That's an effective cost of only €2,380 per house. And there's more.

Located just about two miles from the centre of Tullow Town, Co Carlow, the ghost estate extends to 14 acres and also has planning permission for a further 58 houses.

The houses are built in terraced rows and squares and vary in size from two to three bedrooms. Some have their bathrooms fitted, some their kitchens and some have both. Foundations have also been laid for another terrace of houses.

The properties are expected to appeal to developers or investors who are willing to finish and hold them and in the meantime generate income from the rental market while taking a long-term view on a possible recovery.

Originally the developer, Glendale Estates Ltd (GEL) had envisaged the creation of a retirement village as the site is located next to Glendale Nursing Home which is a separate entity and is not in any way affected by this sale or receivership.

Originallly the houses were restricted to retired people but this has been lifted so now they can be sold or rented out for use by first-time buyers or young families.

At the peak of the market, the three-bedroom houses might have fetched upwards of €200,000 when fully fitted, but now they are more likely to sell for only about €75,000 -- a drop of 63pc.

According to Gemma Lanigan of auctioneers Douglas Newman Good, the three-bedroom houses could generate a monthly rent of around €550 to €600 and the two-bedroom houses could achieve about €500 per month.

Acting on the instructions of a receiver, joint agents for the sale are DNG McCormack Properties. The auction is due to take place on 11 July.

GEL's directors were WestCork-based Anton Hunt and Paul Collins a well as Kerry-based Niall Fleming .

As well as being within easy commuting distance of Carlow Town, Tullow was also considered as a commuter town during the boom period as people working in Tallaght and Blessington commuted the N81 road. However, after the property crash, house buyers found an improved supply of more affordable houses in south Dublin and demand for houses in Tullow dropped leaving the market well supplied.

Indo Property

Business Newsletter

Read the leading stories from the world of Business.

Also in Business