Two Georgian properties in Limerick sold recently for around €80,000 in total through Rooney Auctioneers.
Located at 6 and 7 Upper Mallow Street, the properties had retail units at ground level and 15 bedsits but had been on the market for five years and vacant for more than two years.
Despite the plans for the new urban renewal tax incentives to encourage owner occupiers to refurbish city centre Georgian houses, it is believed that the new owner plans to upgrade them as residential investment properties in compliance with the new building regulations.
Gordon Kearney of Rooneys says that if the new owner were to create eight apartments in the two buildings this would generate a rent of about €43,200 a year. However, he points out that as this is a protected structure, it can be expensive to refurbish and meet the requirements of both a modern lifestyle and conservation standards.
“The uncertainty about the likely cost of refurbishment makes it extremely difficult for developers, not to mention prospective owners or occupiers, to budget for their investment in these type of properties,” he said.