The international real estate market is still reeling from global economic stagnancy, but this allows agencies to make low-risk, high-reward investments. Irish real estate prices are in the cellar and investors are taking advantage with multifamily property purchases, The Irish Times reports.
Ulster Bank recently funded an apartment block in Ringsend, a suburb of Dublin, whose previous owner was going bankrupt. The 210-unit apartment complex charges an average of EU $1,300 ($1,782 USD) per month. That comes out to a total monthly rent revenue of EU $3,275,000 ($4,483,147.50 USD).
Based on the expected rent payments, apartment real estate property is a low-risk investment, according to the news source.
In order to gauge the value of a property, an investor examines both the expected income of rent and the irrecoverable expenses. Expenses include building maintenance, unit repairs, gas and electric bills, insurance premiums and utilities.
Based on this calculation, an investor can determine a ballpark income rate, which for most apartment complexes falls between 6 and 9 percent for investment-quality properties, according to the news source.