Monday, November 28, 2011
Dear Reader,
This Wednesday I’m attending a special closed-door event in a grand ballroom on a leafy square in Ireland’s capital city, Dublin. I’m there for the deals….
Like an elevated two-and-a-half acre lot in a County Clare village for as little as 17,000 euro ($22,600). This rolling rich green countryside is close to where the roaring Atlantic meets vertical cliffs. It’s also near Shannon airport which gives a choice of direct flights to the U.S.
Also in County Clare, you could pick up a small lot for 7,500 euro ($10,000) with permission to build a retail unit and two apartments. An apartment in the wild and untamed County Donegal could be yours from 25,000 euro ($33,000).
These closed-door events have been happening in Ireland since April. Still, the banks, real estate sales people and the government don’t want you to know about them. They are still trying to talk up the market. They would be much happier if you paid sticker price. We don’t like doing that. Why would we… when we can buy at discounts of up to 80% from peak prices… if we know how to get in on the right deals.
The economy, banking system and real estate market in Ireland have unraveled spectacularly. There are few buyers and many sellers. Some owners have to sell at almost any price. So we have fire sale auctions. That’s why we could pick up distressed opportunities like this… A two-bedroom apartment in the heart of Donegal with a maximum reserve of 25,000 euro ($33,115).
“Maximum reserve” means that on auction day the reserve (the minimum amount that the vendor will have to accept if an offer is made) might be lower than 25,000 euro, but can’t be higher.
On Ireland’s northwest coast you’ll find Enniscrone with its wild beaches and coastline…a world-class golf course and world-class surf. Last week, Golf Digest rated Enniscrone in Ireland’s top 15 courses. Adjacent to the golf course and in the grounds of a hotel a 1,300-square-foot holiday home comes with a maximum reserve of 45,000 euro ($59,616).
In Ireland’s southeast, a grand period house (converted to offices for an accountancy firm) comes with a maximum reserve of 120,000 euro ($158,976). Current tenants signed a five-year lease two years ago at an annual rent of 30,000 euro—a yield of 25% if the house sells for the maximum reserve.
A luxury central Dublin apartment close to the Financial Services Center comes with a maximum reserve of 92,500 euro ($122,545). This is an area that has broad rental appeal for young professionals. With Trinity College nearby, students will also rent here if the price is right. The student market helps put a floor on rents. Current rent is an annual 10,800 euro—a yield of 11.7% if it sells for the maximum reserve.
But it’s not too late to participate in this auction. Join my Real Estate Trend Alert group and you can immediately get access to my reports on Ireland - including instructions on how you can participate in this auction.
Ronan McMahon
P.S. Europe is in deep distress. The opportunities aren’t limited to Ireland. In the next two weeks I’m visiting a beautiful corner of Spain where the deals are so good you will want to buy all around you. Make sure you are on the Real Estate Trend Alert list to get my report from Spain.
Posted Under:
distressed, ireland, discounted property
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