Should i take affordable house or not in the coast Baldoyle (price pyrite etc)

S

shola

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Hi!

I just put a deposit down on an apartment in the coast Baldoyle under the affordable housing initiave.

Problem is i dont know if I'm making a mistake. The apartment is on the market at 325k, prices were recently dropped by developer from 385k. Price under affordable housing is 280k.

Most properties in the development are still empty, developer cant sell due to downturn in market and also some areas of the development are affected by "Pyrite".

With all the news at the moment about property downturn and house prices set to drop further I'm wondering if I'm crazy to buy this.

I love the area, close to my family but I'd prob be looking to move on in next few years to a house if it was possible..what should i do?
 
Re: Help! Should i take affordable house or not

What value are the council putting on the apartments? Is it much higher than €325k?
 
Re: Help! Should i take affordable house or not

at the moment, they have them valued still at 385k but they say they will have them revalued at current prices. if theres any issues with that, i defo wont be going for it. have heard other posters having problems with that.
 
Re: Help! Should i take affordable house or not

My guess is that if they're going privately for 325k you'll get them for even less in a few months time... opinion only of course. I've been monitoring some of the affordable developments since last year and they're still on the market. If it's your only way to buy within the next few years take it, otherwise maybe you'd be better holding out.
 
Re: Help! Should i take affordable house or not

If you are planning to live there for 5 years plus, go for it, if you plan on moving sooner, then prob dont go for it. Although if its near your family, thats a really good thing as a lot of people dont end up where they want to end up. I say go for it tho, it would be better than ending up miles away on your own away from everyone you love. Up to you tho.
 
Re: Help! Should i take affordable house or not

Hi Shola, I dont know I think 280,000 is very high when the market value at the moment is 325k, generally you should be expect to make a saving of atleast 100k or more from the price your getting from the council to the market value. I have heeard they cant sell these properties either I would of thought the council would have to drop their prices to fall in line with the current house price fall. Thats definitely not very affordable!!
 
Re: Help! Should i take affordable house or not

I totally agree with Barb. I'm currently in the process of purchasing my affordable home and the affordable housing price is over €100K less that the normal selling price. In my opinion (and it's only my opinion), I think you would be crazy to take it, especially when you are tied into a 20 year clawback with the council which could leave you out of pocket should you need to sell for whatever reason.
 
Re: Help! Should i take affordable house or not

I too was about to purchase an apartment at The Coast in Baldoyle but I discussed the issue of the Pyrite problem with my Solicitor and we concluded that the way the market is at, at the moment the risk was too high. Say in a few years time you want to sell and you can't because the development has a bad name because of it's history or worse the roads start to bulge, will your management fees have to pay for this ? I would imagine so ! I would sit tight and wait for something a bit more reliable to become available. Remember mud sticks !
 
Re: Help! Should i take affordable house or not

Teknon said:
I too was about to purchase an apartment at The Coast in Baldoyle but I discussed the issue of the Pyrite problem with my Solicitor and we concluded that the way the market is at, at the moment the risk was too high. Say in a few years time you want to sell and you can't because the development has a bad name because of it's history or worse the roads start to bulge, will your management fees have to pay for this ? I would imagine so ! I would sit tight and wait for something a bit more reliable to become available. Remember mud sticks !
Click to expand...

Teknon, the coast is a fantastic estate, and there are only very few properties that are affected by pyrite on it, and those are already being fixed. Pyrite will not affect the roads in the estate as they do not use the foundations they use in house/apt's that they use to make roads. This will not be an issue. Personally i think if the person being offered the place in the coast thinks the apt is worth 325k, then i'd got for it, the fact your paying 280 means that your discount percentage is quiet low, howver this works to your advantage in the future as it means your claw back is very low too. it means your claw back will only be about 12.5%, this is what i paid for my clawback when i bought my property from the affordable housing last november in clongriffin and it worked out i only had to pay 38k of a clawback. Dont' be upset you dont get a huge discount at the start, if most ppl know thats the % they pay back in the end they'd be soon wanting less of a discount.

Have you been to visit the coast at all? the finish is very nice, and i know through friends the mgt service in this area is very well. the roads are finished lovely and the place is full of beutiful flowers etc. I'd personally jump at the offer. But its up to you at the end of the day to work out what suits what doesnt etc.
 
Re: Help! Should i take affordable house or not

They are lovely apartments and the development is finished very well. My point is that there is a risk of the pyrite issue affecting the resale value and in the current market I think you can afford to choose carefully.
 
Re: Help! Should i take affordable house or not

The apartments out in Baldoyle are already near the affordable housing prices...

I would turn it down as you will likely see the prices on the market fall even further.

Remember the IMF just said that Irish property prices are still circa 30% over valued. The likes of The Coast, especially with the Pyrite issues, will be one of the first to drop to the real market price.

Avoid is my advice!
 
hey everybody, thanks for all your comments, i've decided against going for this apartment and im getting deposit back tomo. after weighing it all up i think i'm gonna hold out for a few months to see how things go with house prices. the coast is a lovel area and had it been a property i thought i might live in for years and years to come then i defo would have gone for it but fact is i'd prob be looking to move on to a house in a few years and with the issues with this etstate and the way the property market is going i didnt think it was a wise decision...it just didnt feel right and most people were telling me not to do it including a mortgage broker friend and a family member into proprty development...so looks like i'm still homeless for the moment!
 
A wise move! Congrats on not letting your heart rule your head.
 
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