Developer battling repossession tells of ‘nightmare’

A DEVELOPER fighting the repossession of his €1 million penthouse apartment in Dublin has said that investors are in a “nightmare” and there is no point in purchasing property in Ireland.

Investor Dean McEvoy, who owns 25 properties in the capital as well as other properties abroad, said the “nightmare” of the property market collapse was set to last at least another decade.

The 39-year-old was given more time by the High Court yesterday to challenge the repossession of his Citywest luxury apartment, where he said he had been staying until recently after separating from his wife.

The court heard how he had taken out a commercial loan of €850,000 with Irish Life and Permanent in 2007 and with some of his own cash paid €1m for the penthouse in the Slade development.

Mr McEvoy was set to rent it now at €1,250 a month and, with his own funds, was only able to repay the lender a total €1,800 a month, the court heard. But monthly repayments were set at €3,116 over 25 years.

“That’s basically all I can afford at the moment,” he told Judge Elizabeth Dunne, saying he had been unemployed for a period last year but had just secured some work as a consultant on roofing.

But the court heard that arrears of over €60,000 had mounted with non-payments for the loan and €885,000 was now owed.

“There’s no point throwing good money after bad money if things are really bad at the end of the day,” said the judge.

The father-of-two had the case adjourned and was given until February to get the penthouse valued and to talk further with the lender.

Speaking after the hearing, Mr McEvoy said property prices had dropped by 50% since the collapse.

He said he had investments in 25 properties in Dublin and more abroad.

“I still have them. I managed to hold everything. You can’t give the stuff away. And if you do get an interest in buying the property, the problem is the bank won’t give them the loan.

“The only reason I wouldn’t like to lose it is they’d sell it for €400,000 and I’m liable for the other €500,000.”

Negotiating with banks had become easier, he said.

“At the start they were a shower of cowboys. I’m in this recession three years. At the start there was just no dealing with them.

“I find now that they’re willing to talk. The banks have no choice, half the country’s not paying them.”

Mr McEvoy said his apartment was on a golf course, 2,500sq ft in area and “bigger than any house you’d see”.

Asked about investing in property here now, he said: “You’d sell nothing. I just have them all rented. This is a 10, a 15-year nightmare.

“Rent is the only way forward in this country now,” he concluded.