Brendan Burgess
Founder
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The interest rate charged would need to reflect the riskiness of the project and the strength of the guarantees. Construction loans (bridging) would be higher than typical mortgages, 9% compared to 4%. In addition a lender will only fund if it is believed that the full amount of the loan advanced at any stage in the process can be repaid if the project has to be abandoned. This means that the value of the project at completion and the current state of construction would influence the amount of loan that would be advanced as well as the strength of the promoter. The normal percentage of the development finance sanctioned would be circa 60% as set out above.
The alternative would be to sell the site to a developer on condition that they build 4 family style apartments.
What is a citizen developer.
Were Sean Dunne et al not citizens?
150K for a site suitable for 4 family apartments sounds very reasonable. That's less than 40K for each family. Someone mentioned 300K per apartment for construction, which seems high to me considering you are building one building with 4 units.
So the way to look at this is how much would a family apartment be worth on completion. Basically would it be worth at least 350K.
A decent apartment in Dublin commands how much in rent? I assume we are talking at least a 3 bed apartment size?
Just had a look at the site, not too narrow and they are allowed go up 6 stories. So that gives a lot of options. Silly not to allow them to go down and create underground parking when it's such an ordeal to park in Dublin. Never understand this aversion to allowing the creation of parking spaces. I wonder would they be allowed to create a 7th level underground. Good for storage rooms and utilities maybe.
basement construction would send the cost through the roof on a development of 4 units, especially with having to underpin the properties on either side.
i assume someone who will not sell on for commercial gain.
Strange use of the word citizen. Seems to me that someone is trying to use a value laden description here. Citizen developer good, non-citizen developer (what is the opposite of citizen) bad.
Ok, so that's not a runner. How much would that cost do you estimate?
And how much is a parking spot worth in that area?
What do you think of thte 1.2 million build costs, is that about right for that plot, in a built up area and bearing in mind it is Dublin where build costs are highest.
What is a citizen developer.
Were Sean Dunne et al not citizens?
Strange use of the word citizen. Seems to me that someone is trying to use a value laden description here.
it depends on so many variables as with 4 families you are going to have 4 completely different finished products. ... There is not even a size guide available for the site. Ground conditions would also be an issue in that part of dublin.
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