Address: Knockyclovaun, Killaloe, Co Clare.
Agent: Sherry FitzGerald O'Mahony.
The property: farmhouse on 45.5 acres to be auctioned on February 28th with an advised minimum value (AMV) of €1 million.
The look: rustic three-bedroom farmhouse that looks in need of a lick of paint. It comes with a hay barn, large garage workshop, stable and small cowshed.
The landscape: a mile from Killaloe village on over 45 acres of good agricultural land, the property has stunning views of rolling countryside, the mountains and Lough Derg.
How much for an investor? With stamp duty at 9 per cent and legal fees of 0.5 per cent plus Vat, the acquisition cost of the property - assuming it is sold for €1 million - rises to €1,096,050. On a 70 per cent investor mortgage, a purchaser at a rate of 3.75 per cent over 20 years would have annuity mortgage repayments of €49,803. Payments on an interest-only mortgage would be €26,250.
An investor on a 50 per cent mortgage at a rate of 3.75 per cent over 20 years would have an annual repayment on an annuity mortgage of €35,573 and a repayment of €18,750 per annum on an interest-only mortgage.
Potential: the site has development potential subject to planning permission. The 350-yard road frontage of the farm and the popularity of nearby Killaloe could arouse the interest of residential developers. However, it might also be bought by a farmer. There is evidence though that an increasing number of farms are being sold to investors for redevelopment.
Verdict: With a greater number of investors chasing farms, it is likely to sell for over €1 million. However, the scenic beauty of the countryside may mean the planners won't blot the landscape with residential development. There have also been a few housing developments built in nearby Killaloe in recent years.
Calculations by Simply Mortgage
