Over the last two days we have analysed our investment picks in the latest Allsop Auction for the small investor, including lots in both South Dublin and North Dublin for between €120,000 and €400,000. Today we take a look at two larger residential investments in Prime Dublin locations that will attract the wealthy investor with approximately €1 million to spend.
Investments For The Wealthy Investor
154 – 155 Capel Street, Dublin 1
This mixed use block in the heart of Dublin 1 is in a enviable location. Combining 7 apartments over the upper floors with a ground floor retail unit, this property will appeal to the more sophisticated investor. Although the apartments will let all day long to young city dwellers and students, the commercial unit needs some careful consideration.
Currently producing approximately €90,000 per annum from the 7 apartments – with rents ranging from €900 per month for a 1 bed to €1,500 per month for a two bed. However the ground floor unit is completely vacant and in need of a tenant. The location is traditionally strong for retail, a short walk from Mary Street and Henry Street, the river and the red Luas line. However there are still high vacancy rates for commercial units in the area, plenty of competition for any prospective tenants.
The income from the apartments alone providing a 9% gross yield from the outset if purchased at €1,000,000. Any tenant you can enlist for the retail unit is a bonus.
1,2 & 3 Charleville, Church Road, Ballybrack, Co. Dublin
For those with more suburban and affluent tastes, this Ballybrack development could be a great opportunity. Three 4-bed townhouses in a prime area close to the coast, the DART and the M11/M50. All are finished to very high, modern standards. These will be of interest to investors for two potential opportunities: to sell off individually or to retain and rent.
Interestingly, No. 1 Charleville was previously on the market with Bernie and Wise (you can still see the PDF here). Searching on price tracker websites, I that they were quoting just €345,000, dropped from €395,000 earlier in the year. This seems rather low and a surprise the property didn’t sell at that level.
Castle Estate Agents are currently selling a similar sized 4-bed in Ballybrack for €400,000 which requires updating. New high-specification 4-beds in this area should be achieving at least €400,000 if not €450,000. Therefore there could be the potential for a quick flip here: if the property could be acquired for €1,100,000 and then sold individually for €450,000 a piece, there is the potential for a €250,000 profit.
However, there is the risk there was another reason for the vendor selling this as a whole. Title issues or structural arrangements could make it impossible to separate the ownership of the development, meaning it has to be kept together and sold as such.
In that scenario, it would still be a profitable investment as a rental scheme. There is a shocking dearth of family homes available to rent in South Dublin. We found only a handful of currently available 4-bed rentals in the South Dublin area. It is quite possible these units would let for €2,500 per month, generating €90,000 per annum and a healthy gross yield of approximately 8%. Factor in some future capital growth and we may see some aggressive bidding on this one. But be careful if you do bid – make sure you know what you are buying and your solicitor takes a good look at the title.