Location puts property in a different class

WITH the tide at low ebb for residential rental properties, with rents dropping and tenants in short supply and able to pick and choose, the location of investment properties is about to take centre stage in urban areas.

There’s been a dramatic turn in the rental sector in the last year since investors came flocking back to the Irish market, encouraged by banks willingness to lend.

Supply has now clearly out-paced demand, and investors with places to let a bit off the main and most accessible urban routes are finding tenants hard to find and to hold.

Now, in this colder economic climate and changed investment scenario where softening rents won’t guarantee paying mortgages, those keen to invest are best advised to pick only prime locations.

And, a city riverside apartment currently under a flood of viewings is proof positive about the mantra and wisdom of buying based on location, location, location.

A ground floor two-bed apartment at Fisherman’s Wharf off Washington Street in Cork city had over 40 viewings in its first week alone, reports Peter Skuse of Cahalane Skuse auctioneers.

He says “it has already proven to be a superb investment, and will do so again for new owners.”

He guided the 610 sq ft two-bed with west facing balcony at over 200,000, and it is already well over that in offers and it is also getting owner occupier interest as well given its handy location close to UCC and the city centre. It has electric heating, secure courtyard access, and you could nearly fish for your supper from the sliding patio door balcony looking upriver towards Jurys Hotel and UCC.

When initially built 10 years ago by the Kenny Group, it had a £55,000 (70,000) sale price and Section 27 tax reliefs, which gave a net cost to the buyers of over £30,000 or just over 40,000. It is now making five times its net cost.

The original sales brochure, modestly noted as the very last of its ‘Special Features’ ‘Capital Appreciation is expected.’ Boy, were those pre-boom Celtic Tiger years more innocent days.