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€40k apartments, is there a catch?

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  • 25-10-2010 12:54pm
    #1
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,493 Mod ✭✭✭✭


    There are 2 bed apartments for sale near Youghal in Cork for €40,000. I know these have been written about in a few articles but nothing particularly good or bad have been written about them.

    Is there a catch here? My parents would love to spend their retirement fund on a place near the sea. But this seems to good to be true.

    I know they're boxy and small, but it wouldn't be their primary residence.

    Here they are on myhome.ie

    Can anyone spot any major flaw here?
    Cheers.


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    #2
    Heyes
    Registered Users Posts: 2,203 ✭✭✭Heyes


    Only way to really know is to get a full survey done. Appartments are going for crazy prices at the moment so you just never know.


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    #3
    Andrew33
    Closed Accounts Posts: 1,857 ✭✭✭Andrew33


    Are you serious??? 40k for a 2 bed? or are they being advertised as "from 40k"? my last car cost me that and I thought nothing of it, So what if their value dropped by 75% over the next 4-5 years! buy as many of them as you can, in fact, if you can convince friends, family etc, it'd be wise to buy the entire block, lease, the lot!

    I've just spotted the flaw, they're attached to a hotel/holiday complex which have a lot of provisos/conditions/charges attached. Still a good buy but make sure you employ a good solicitor to stitch up the deal good and tight for the future.


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    #4
    Mr. Loverman
    Closed Accounts Posts: 4,001 ✭✭✭Mr. Loverman


    That does seem like decent value. Ground floor might be good for them as well, no worry about going up stairs?


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    #5
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,493 Mod ✭✭✭✭dory


    Andrew33 wrote: »
    Are you serious??? 40k for a 2 bed? or are they being advertised as "from 40k"? my last car cost me that and I thought nothing of it, So what if their value dropped by 75% over the next 4-5 years! buy as many of them as you can, in fact, if you can convince friends, family etc, it'd be wise to buy the entire block, lease, the lot!

    I've just spotted the flaw, they're attached to a hotel/holiday complex which have a lot of provisos/conditions/charges attached. Still a good buy but make sure you employ a good solicitor to stitch up the deal good and tight for the future.

    I'm not sure if you're first paragraph is sarcastic or not.....

    I meant to mention that they're attached to the hotel. Don't know what implications that will have but would have to look into it. And check the annual charge. And find out what would happen if the hotel went out of business.

    Also, should add the Daft listing as myhome.ie has them placed in the totally wrong spot. They're not in Youghal town at all, but a bit outside it.


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    #6
    Mr. Loverman
    Closed Accounts Posts: 4,001 ✭✭✭Mr. Loverman


    Actually I don't think you can live in it. The following hidden text is on the page:

    The apartment is leased to the Quality Hotel who manage the development throughout the year and any profits are shared among the owners at the end of the year. There is also a management fee.


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    #7
    Heyes
    Registered Users Posts: 2,203 ✭✭✭Heyes


    Mr. Loverman wrote: »
    Actually I don't think you can live in it. The following hidden text is on the page:

    The apartment is leased to the Quality Hotel who manage the development throughout the year and any profits are shared among the owners at the end of the year. There is also a management fee.

    I dont understand that, would that mean part ownership ?!.. i can understand if there is a management fee proposed by the hotel, but not a share of profits, or not been able to live there ?!...


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    #8
    Lambsbread
    Closed Accounts Posts: 442 ✭✭Lambsbread


    Redbarn is a good bit away from Youghal town. There are not many amenities in the area and it is about a 25 min drive to the town. I wouldn't buy a holiday home there that would not be used that much. It is easy and cheap to rent a place for the weekend or a week there (the town has overbuilt during the boom).

    In terms of retirement, there are better locations than Redbarn. It only really has a nice beach. My parents have retired in Youghal and they really like it there but there are far better options than this.


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    #9
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,493 Mod ✭✭✭✭dory


    Lambsbread wrote: »
    Redbarn is a good bit away from Youghal town. There are not many amenities in the area and it is about a 25 min drive to the town. I wouldn't buy a holiday home there that would not be used that much. It is easy and cheap to rent a place for the weekend or a week there (the town has overbuilt during the boom).

    In terms of retirement, there are better locations than Redbarn. It only really has a nice beach. My parents have retired in Youghal and they really like it there but there are far better options than this.

    Yea, I was going to say it's a sort of Ryanair interpretation of Youghal.

    Thanks for all the input people. I guess it was too good to be true.


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    #10
    neilster
    Closed Accounts Posts: 719 ✭✭✭neilster


    dory wrote: »
    Yea, I was going to say it's a sort of Ryanair interpretation of Youghal.

    Thanks for all the input people. I guess it was too good to be true.


    Even if it was true ...i know of a chat buying an apartment with a good business who couldnt get a mortgage from his bank cos they were advising not to do it

    that there is no market for them and they would only go down in value...so if someone is prepared to live in it for most of the mortgage ...its great but if not its a nono


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    #11
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,493 Mod ✭✭✭✭dory


    neilster wrote: »
    Even if it was true ...i know of a chat buying an apartment with a good business who couldnt get a mortgage from his bank cos they were advising not to do it

    that there is no market for them and they would only go down in value...so if someone is prepared to live in it for most of the mortgage ...its great but if not its a nono

    Well there'll be no mortgage involved. Just buying an apartment with cash so as to spend a few summers at the beach. They won't care about future value or whether or not there'll be a market for it.
    But for the reasons given above this may not be a runner.


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    #12
    Victor
    Registered Users Posts: 78,388 ✭✭✭✭Victor


    You are likely buying a tax break, not an apartment. The property probably won't be available during the summer as the hotel will have it rented out.

    You really need to get professional advice.


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    #13
    chessman
    Registered Users Posts: 74 ✭✭chessman


    this guy is spot on on.its nice during the summer you can go down to the beach and walk into Youghall but it is in the middle of no-wher and dead as a dodo from the end of august until MAY,40k THER MUST A CATCH,AS THE OLD SAYING IF IT LOOKS LIKE CRAP SMELLS LIKE CRAP,TASTES LIKE CRAP,IT PROBALLY IS CRAP.
    Lambsbread wrote: »
    Redbarn is a good bit away from Youghal town. There are not many amenities in the area and it is about a 25 min drive to the town. I wouldn't buy a holiday home there that would not be used that much. It is easy and cheap to rent a place for the weekend or a week there (the town has overbuilt during the boom).

    In terms of retirement, there are better locations than Redbarn. It only really has a nice beach. My parents have retired in Youghal and they really like it there but there are far better options than this.


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    #14
    super_furry
    Registered Users Posts: 27,322 ✭✭✭✭super_furry


    Your parents nice retirement home by the see could quickly turn into a dodgy council dumping ground. I'd be very wary.


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    #15
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,493 Mod ✭✭✭✭dory


    Thanks everyone, I'll enquire, but this will certainly be a long shot.


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    #16
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    Mr. Loverman wrote: »
    Actually I don't think you can live in it. The following hidden text is on the page:

    The apartment is leased to the Quality Hotel who manage the development throughout the year and any profits are shared among the owners at the end of the year. There is also a management fee.

    I think this comment has been somewhat overlooked and I feel it could be the key to price tbh. I know my parents have a similar apartment in Paris where they own the apartment but it is leased to a hotel or something so they are not free to use it; the rent from the hotel basically pays for the mortgage and when that is paid off they start to make money from it.

    The way that ad is worded sounds like a similar deal to be honest.


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