Apartments for €69,950: Would you buy at this price?

Apartments for €69,950: Would you buy at this price?

Apartments for €69,950: Would you buy at this priceApartments at Tailteann Court in Mullingar which is less than an hour outside Dublin city centre, go on sale this weekend for as little as €69,950.

The 63 apartments which were originally put on the market for €202,000 failed to sell a single unit and are now being sold for less than two thirds of their original asking price.

Director of the Irish Mortgage Corporation Frank Conway, who is assisting with the sale this weekend said that the monthly repayments for one of these apartments would be cheaper than a car loan and also the equivalent monthly cost total of a 20 a day cigarette habit.

“If a person were to take out a mortgage of €75,900, their net payments would be only €264.85 per month. If we compare this to a car finance payment, let’s say they borrow €15,000, interest rate 10%, four-year loan, the repayments would be €380.44. Not only that but if you buy a pack of 20 cigarettes per day for one month this would cost €263.50. For just over €1 more, you could own a two-bed property,” he said. …

Have your say:

  • Apartments for €69,950: Would you buy at this price?
  • Regardless of the various price comparisons are these apartments value for money?
There are 16 comments for this article
  1. Thoby Adams at 1:16 am

    I live in the U.S. and have been to Ireland many, many times over the years. A lovely country peopled by wonderful people….. At one time I thought of purchasing an apartment in Waterford but the prices were completely beyond reason. I’m thinking of looking again when I’m over in September. I’m impressed with how easy (and cheap) it is to get anywhere in Europe from Dublin. Therefore, if anyone has insights into Waterford RE I’d appreciate hearing from them at Oh, by the way, what is it about Irish houses built without garages? A house without a garage is practically unheard of in the U.S.

  2. Ruby at 11:33 pm

    I agree with all the above. The fact is that the property scene in this country was only a ponsey scheme, we have negligible exports from this country and that is how we should have measured our worth. The property never was really worth much and never will be, the two things Ireland has are a minority group of gifted hard working people and good strategic positioning between America and Europe, but shackled with that we have a sly corrupt government and senior civil servants and a cowered middle class who have no further inclination to pointlessly slave so that they can fuel a pointless socialistic sham economy. Why would anybody want to buy any property here when there is an extremely high chance that the government is ultimately going to snap them all up for social housing as a way of repayment from developers to NAMA and you will be paying a mortgage and doing your 4 hours daily commute so you can live in a council estate. There is so much injustice in this country, it’s probably time to watch and wait, take care of your health and do things with your family, because the government are going to be grabbing everything for the next 10 years and it will break and hard working person’s spirit and health.

  3. Henning Duve at 8:24 pm

    Due to Irish construction quality possibly €35000 would still be too expensive…

  4. Pat at 2:22 am

    I am a Yank who lives in a small ex-hotel room near Central Park, NYC, built in 1928. It was converted into an apartment bldg. in 1986, the yar after I moved in. It is quaintly called a Bed-Sit if I am correct on what it is called across the Pond.

    I just spent a fortnight in your country this February as the guest of a pal who wishes to retire at home. Oh, if only I could join you all.

    You all have called it correctly: all of the flippers who overbuilt the Ghost Mansions now are pleading for the government to bail them out, something I am so, so familiar with here in the U.S.

    February 14th was not only Valentine’s Day, but it was the beginning day of the Chinese New Year of the Tiger. I wish for the Tiger to come back to Ireland stronger than ever and this time, to get it right: bring prosperity to all of the people, not just those Greedheads at the top.

    You are a wonderful country and you deserve the very best of everything. I can’t wait to return, even though $201.33 American bought me Euro 135!!

    No wonder you came over to U.S. to do your Christmas Shopping! Slainte!!

  5. Laura at 9:57 pm

    Great comments Colm. I couldn’t have said it better myself.

  6. RR at 9:24 pm

    Certainly, it looks like the market has sill some way to bottom out!

  7. michael walsh at 9:11 pm

    god value for anyone who can afford to buy it and use it for holidays like ma mike

  8. Pete at 6:13 pm

    I’ve looked at lots of new build apartments over the last few years and I can only say that you would’nt want to own any possessions because you won’t fit them in. These places have been built without any thought about how people are supposed to live in them. Landscaped gardens that residents could enjoy in good weather? No chance. A lockup for storage? Are you mad?
    Every inch has been carefully measured to pack in as many apartments as possible. Most of these developments will also only have one car parking space per apartment, so what happens if two, three, or four people are sharing an apartment and all own cars? Lets not forget that other rip-off, the Management fee. This I believe currently varies between €1000 to €1500 pa. Bargain? I don’t think so.

  9. Daniel at 4:32 pm

    Only one hour’s drive to Dublin? Who are you trying to kid? More like 2-hours door to door in rush hour. As there are next to no jobs locally this is a property for losers who are happy to sit in traffic for a large part of their life as they feel they will never be able to afford a house close to work in the Dublin area. Our FF / Green government are going to tax the private motorist into the ground; petrol at €2 /litre, pay per km on motorways, etc. etc. is all on the way to pay for NAMA and the banks and to punish you for thinking you are entitled to drive a motor car.
    Sit tight and save your cash for the bottom of the market when you will get a 3-bed in Dublin for this sort of money. Don’t let some greedy builder’s problem become your problem.

  10. Anto at 3:35 pm

    I agree with Dan, It’s in Mullingar. They probably can’t give them away!

  11. Paulo at 2:36 pm

    Great comments Colm.
    They seem like good value until its realized they were way overpriced initially anyway. Long term
    investment maybe but you couldn’t be sure. Location, location, location..etc they wouldn’t be selling @that price unless they were absolutely desperate…

  12. johnnyblogs at 1:44 pm

    Colm, you’re a ‘realist’! We could have done with more realists like you in this country a few years back and we wouldn’t be now in the situation we find ourselves, trying to offload dead ducks on a nation that has already been bled dry!

  13. Dan at 1:19 pm

    Its in Mullingar.

    What use is an apartment in Mullingar?

  14. Colm at 1:08 pm

    Personally I would have my doubts about it. 70K feels like the floor. The problem is where will it go from here. You will probably have to put 15K in to an apartment to make it habitable. So now we’re at 85K. Throw in legal fees etc and you won’t have much change from 90K. That may seem very reasonable versus a couple of years ago.

    But the price people will remember is 70K. Assuming this is the floor the best we can hope for is 1-2% increases pa for the 10 years after the “recovery starts”. Therefore it will be a LONG time before prices rise enough to recover your 20K additional investment. There is also a danger that at these prices a certain class of buyer is attracted who won’t help your long term value. Remember when the likes of Southhill and Moyross were being built private buyers could purcahse homes there and many did. They bought houses for 13K in the 70s that were still impossible to sell at 13K in the boom 30 years later. They were bigger houses than some of the boxes being sold in other parts of Limerick but it was the neighbours who destroyed any re-sale value.

    So even in the best scenario you are probably looking at living in the apartment for 10 plus years before you recover your total initial investment. Sure you could rent it out but if you do will you get enough rent per month to cover even that mortgage in Mullingar? What condition will an ex-rental apartment in a block full of rental apartments be in after 10 years?

    Personally I would say unless you really want to live in Mullingare and see the apartment as a home not an investment then go for it. They won’t get much lower than that. Otherwise hold out for your dream home in the area you really want it. And of course if your an investor looking for a quick buck buy prize bonds. They will hold their value just as well as these apartments and have a better chance of turning into a million euro.

    • allen at 6:33 pm

      Colm, are you for real, its a place to live and if you work (have a job) nearby then its great. The problems we have now is that some people bought to make money now they have no job and a house worth less than half what they paid, and nobody is in the market to buy a house.

      • Colm at 11:08 pm

        Allen, I think that’s what I said. If you want to live in it long term then OK but if you want to make back the 20K you will be putting into buying it and kitting it out (legal fees, painting, kitchen, floors, beds, etc etc etc) then you will be a long time getting out of that hole as any annual “increase” will be measured from the 70K not the actual total purchase price.

        A lot of people will think they can live in an apartment for 10 years. Then they get a husband/wife. Then a baby which turns into a toddler and is joined by another baby. Now they are tripping over each other in the apartment. They will want to move but even if they are not in negative equity (and 70K feels like the floor) they are still paying off the personal loans they took out for the 20K “hidden costs”.

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