# Allsop auction of 80 properties on behalf of the receivers



## Brendan Burgess (10 Mar 2011)

Allsop in the UK are having their first auction of Irish properties on behalf of receivers. 

You can get the full addresses 

The maximum reserve price is here

For example, there is a studio apartment in Temple Bar with a maxium reserve of €80,000. In other words, if someone bids at least €80,000 on the day, it will be sold. Of course, it go for a lot more than €80,000


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## elcato (11 Mar 2011)

This may be me being paranoid here but I have very little faith in this auction system. I believe it will bring in some suckers and that they will have plenty of mysterious phone bidders pushing up the prices. I have seen plenty of examples in my time in England of these 'auctions' (Electrical goods, Designer suits etc). Why should this be any different just because it's property ? No doubt some guys will appear out of nowhere afterwards with a 'testimony' saying how he got a pad for 70k that was worth 400k in the boom. Watch this space. Warning: What seems a bargain now may not be in two years time.


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## Bronte (11 Mar 2011)

You don't have to go to an auction to get a bargain now if you want to say you have bought a bargain now compared to boom time prices.  

Auctions are held all the time, there was one in Galway a couple of weeks ago help by a reputable estate agents and prices were a 'bargain' compared to boom time prices.


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## Brendan Burgess (11 Mar 2011)

I think that this company has a good reputation for dealing with receivers. 

There is an established practice in the UK for selling off repossessed homes, which we don't have here. 

As with any auction, the person needs to exercize care. 
1) Get the property surveyed first 
2) Get your solicitor to check out the contract e.g. the "snip" in Temple Bar is described as "leasehold". 

As with any auction, you spend money investigating the property and it may well sell for well above what you are prepared to pay. 

At least these guys are publishing a minimum reserve saying that it will sell at this price. I have been the highest bidder in Irish auctions and bid well above the guide price only to be told that it meant nothing. 

Brendan


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## elcato (11 Mar 2011)

On a kinda similar note then, can someone explain this ad to me which looks like it's being auctioned for 80k reserve. Further down it states "The property is subject to a Tenancy at a rent of €10,800 p.a.". Does this mean that for a one bed apt you pay up to 80k for the actual lease and then 900 a month to actually live in it ? Sounds too mad to be true.


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## Berni (11 Mar 2011)

No, it means that it is currently rented out to a sitting tenant at that price


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## elcato (11 Mar 2011)

Ah ha. Thanks.


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## demoivre (11 Mar 2011)

Hard to see it only making 85k with that yield ! 12.7% before outlay !


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## Brendan Burgess (11 Mar 2011)

demoivre said:


> Hard to see it only making 85k with that yield ! 12.7% before outlay !



Well they have publicly stated that this is the maximum reserve which is a completely new phenomenon in the Irish market. 

The rent may be €10,800 but you must ask if that is the rent you will get when the current tenancy ends. If the rent drops, the yield drops.

Brendan


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## Brendan Burgess (23 Mar 2011)

I have done a Guide to Buying a House at Auction for those interested in these properties.


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## NorfBank (15 Apr 2011)

This auction takes place today.

[broken link removed]

The sale is expected to set a new floor for Irish house prices which are widely accepted to have dropped by at least 50 per cent from peak. 

Today’s prices may indicate an even steeper fall, as the _auctioneers say that the published reserves may be revised downwards before the 12.15pm start of the auction._


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## Bronte (15 Apr 2011)

On Newstalk yesterday there was an auctioneer? who stated that houses had fallen more than 60% and that properties in the 2 top monopoly streets were selling for 7 million versus 25 to 35 million in the boom. Also mentioned that houses in South county Dublin (Dalkey & Killiney) were being sought by cash buyers to sellers who wanted to be discreet.   I think he mentioned about 1 million for nice homes with large gardens.  Maybe it was 3 million.  Don't know what they were during the boom.  Not sure what all the words like discreet and cash buyers was about anyone any idea.


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## Bronte (15 Apr 2011)

elcato said:


> On a kinda similar note then, can someone explain this ad to me which looks like it's being auctioned for 80k reserve. Further down it states "The property is subject to a Tenancy at a rent of €10,800 p.a.". Does this mean that for a one bed apt you pay up to 80k for the actual lease and then 900 a month to actually live in it ? Sounds too mad to be true.


 
It's a leasehhold property but it's as good as freehold as it's for 999 years so that's what you are buying. Not to be confused with leasing a property, say like An Post/McDonalds leases a building from Bank of Ireland/Treasury holdings for 35 years. 

As owner you pay a peppercorn rent. Might be a 100 Euro's a year or some nominal sum. Sometimes called ground rent. 

The property is currently let and that tenant is paying the owner 900 a month or 10,800 a year.

In relation to buying a property with a sitting tenant, legally this was always not advised, maybe the situation has changed. I checked some of the properties on that list and found the rents mentioned to be realistic, based on my own knowledge.


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## Slim (15 Apr 2011)

Bronte said:


> tenant is paying the owner 900 a month or 10,800 a year..


 
This is a return of 13.5% based on the reserve - not bad at all.


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## Bronte (15 Apr 2011)

Slim said:


> This is a return of 13.5% based on the reserve - not bad at all.


 
Looks good but what about management fees, the fact you can only write off 75% mortgage interest  etc.


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## TheJackal (15 Apr 2011)

Here are the lots on sale today 

Do they post up afterwards what each actually sold for?


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## Sue Ellen (15 Apr 2011)

TheJackal said:


> Do they post up afterwards what each actually sold for?



Hopefully it will be available on the Live Results section?  Will make very interesting reading.


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## bugler (15 Apr 2011)

Bronte said:


> It's a leasehhold property but it's as good as freehold as it's for 999 years so that's what you are buying. Not to be confused with leasing a property, say like An Post/McDonalds leases a building from Bank of Ireland/Treasury holdings for 35 years.
> 
> As owner you pay a peppercorn rent. Might be a 100 Euro's a year or some nominal sum. Sometimes called ground rent.
> 
> ...



The location of that apartment is grim. Unless it's fitted out very well, even a quick look on Daft finds better located places (some with an extra bedroom) for that rent. If you're the LL, then long may the tenants foolishness continue, I suppose.


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## Brendan Burgess (15 Apr 2011)

I passed by the Shelbourne and there were big queues. There was also a good crowd outside Doheny's. 

[broken link removed]

Brendan


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## Brendan Burgess (15 Apr 2011)

22 out of the 23 put up for sale so far, have been sold.

Brendan


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## elcato (15 Apr 2011)

[broken link removed] - Loive as Bill would say. You can get the results so far to open up in a different window also


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## Guest105 (15 Apr 2011)

I just noticed a house in Mullingar, Lot 79 sold for just €30,000 

I know prices have dropped substanctially but this sort of drop is kind of scary


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## aristotle (15 Apr 2011)

cashier said:


> I just noticed a house in Mullingar, Lot 79 sold for just €30,000
> 
> I know prices have dropped substanctially but this sort of drop is kind of scary


 
Well, have a look at it first...

http://www.auction.co.uk/irish/LotDetails.asp?A=734&MP=24&ID=734000079&S=L&O=A


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## Delboy (15 Apr 2011)

around €0.5m each for the 2 houses in Churchtown I had been looking out for, about 15 times the average industrial wage...me thinks that a not very realistic 'floor' has been set in the Irish property market..


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## LouthLass (15 Apr 2011)

http://www.daft.ie/searchsale.daft?id=585164

Who needs auctions in todays climate??  Just look at the 4 bedroom house above advertised in Ardee!


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## LouthLass (15 Apr 2011)

guide price €150k, probably go for less! No connection at all to seller, public knowledge in area I live in.

http://www.daft.ie/searchsale.daft?id=585164


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## Delboy (15 Apr 2011)

big property for 150k....is Ardee nice!!!


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## LouthLass (15 Apr 2011)

LOL - probably a bit biased but I live in Ardee and have done for the past 18 months and I have to say I like it, got all I need - several pubs, Indian/Chinese/Italian/Traditional restaurants, home bakeries, several local shops - I should stop now before I'm accused of being on the Ardee welcoming committee lol - final word, I love living here


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## coin (15 Apr 2011)

cashier said:


> I know prices have dropped substanctially but this sort of drop is kind of scary



Some of the prices are not that scary at all.


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## Brendan Burgess (16 Apr 2011)

House price speculation is still suspended on askaboutmoney.



> around €0.5m each for the 2 houses in Churchtown I had been looking  out for, about 15 times the average industrial wage...me thinks that a  not very realistic 'floor' has been set in the Irish property market..



This sort of post is in technical breach of the guidelines and it would be better if people did not make such posts. 

That does not in any way prevent people from commenting on the falls to date. 

Of course, the invitation to write a balanced piece is still open.


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## boxplayer (16 Apr 2011)

Brendan Burgess said:


> House price speculation is still suspended on askaboutmoney.
> 
> 
> This sort of post is in technical breach of the guidelines and it would be better if people did not make such posts.
> ...



Isn't saying that this has set a floor on the market a comment on the present rather than on the future? 

Any idea when house price speculation might be un-suspended?

And any advice on how one might go about writing a balanced piece on house prices (involving some degree of forward-thinking)?


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## Brendan Burgess (16 Apr 2011)

Seems as if we can't have any discussion on this without discussing house prices, so I am closing the thread.


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