Unsold new apartment blocks; the irish "sub-prime" for banks?

haha, I think cisrl was trying vainly to suggest that there was there was life in the Dublin Property market but inadvertently opened a can of worms.. so all these empty apartment Blocks are being used as Brothels while unsuspecting landlord collect untaxed rent...
 
Well they would say that wouldn't they? If they're running brothels, they're hardly likely to tell your friend this over the phone?
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Never thought of it this way :eek:

Is this more common than most people realise?
 
It just goes to show the level of denial in this country is astonishing. There's a report today that in the UK, apartment prices have been slashed by up to 43%:

http://www.telegraph.co.uk/finance/...lopment-slashes-43pc-off-property-prices.html
The investment bank claims to have seen copies of a sales document sent by Barratt Developments' Yorkshire East division to property professionals offering up to 43pc off specific properties to buyers prepared to buy five or more flats or houses.

Analyst Alastair Stewart said: "Prices of urban apartments appear to have fallen in many cases by 40pc to 50pc, volumes have dried up to virtually zero, many developers have gone bust and land in many cases appears to be worthless."

[...]

Dresdner also reported that the six leading property agents in Leeds have between them sold just six new apartments in two months.
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Remember when those who said prices would drop 50% were considered to be lunatics?

But of course, the Irish property boom is a whole new paradigm, rent is dead money, safe as houses, etc.

Oh, as for the excuse that all those empty apartments are actually full of hookers... I can only clap my hands in admiration at that bear of bearishness. Perhaps Adamstown should be renamed "Monto"?

P.
 
csirl said:
Never thought of it this way :eek:

Is this more common than most people realise?
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It wouldn't be a good rental market, dealing with dicy people, meat cleavers etc. There actually wouldn't be a lot of apartments wanted certainly couldn't fill an apartment block and tenants tend to be transient and get moved on every couple of months by the police. Also in these reccessionary times this will have to be one of the punter's expensive habits to forego so leading to less demand for apartments. Is there a big market for the pack the foreigners in like sandwiches brigade, I would have thought that was more likely in older building and not new apartment blocks. I'm not a fan of the PRTB but I thought they were apparently making sure that no rental property went unregistered. Are there really vast amounts of apartments unsold? What is keeping the builders from selling?
 
csirl said:
Never thought of it this way :eek:

Is this more common than most people realise?
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We had this problem a few years back. Just rented to a normal couple, or so we thought. After a few months we started to get anonymous phone calls in the middle of the night, claiming brothel was being run there. They (the couple) claimed the wife had a massage business on the side. Maybe she did extras! The bed had vanished and a massage table had appeared in one of the bed rooms. Never any problem with payments and they left after a few months after that.
 
Bronte said:
It wouldn't be a good rental market, dealing with dicy people, meat cleavers etc. There actually wouldn't be a lot of apartments wanted certainly couldn't fill an apartment block and tenants tend to be transient and get moved on every couple of months by the police. Also in these reccessionary times this will have to be one of the punter's expensive habits to forego so leading to less demand for apartments. Is there a big market for the pack the foreigners in like sandwiches brigade, I would have thought that was more likely in older building and not new apartment blocks. I'm not a fan of the PRTB but I thought they were apparently making sure that no rental property went unregistered. Are there really vast amounts of apartments unsold? What is keeping the builders from selling?
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Best guesstimate of the stock of unoccupied property in Ireland is approx 10%-15% of all properties nationally (check the results of the 2006 Census and add much of the building done since then - perhaps 300k-350k in total). What % of these are for sale is difficult to judge but there is probably about 24 months of 'normal' supply on the market at the moment. Some builders have broken ranks and slashed their prices but the majority have not. On the demand side, mortgages are more difficult to get, and when you do get approved it is likely to be for a lower amount than would have been available say 18 months ago.

The builders can afford to hold on because the banks have let them.
 
I was trying to elicit what the quantity of vast is. Yes I know builders are vailiantly trying to hold onto many apartments with banks having a gun to their heads to prevent them dropping the price, and both sides (banks and builders) are just waiting until the budget sorts it all out for them and then we'll see what happens. Maybe a few purchasers will appear after that. And after that it will get even more interesting.
 
Bronte said:
I was trying to elicit what the quantity of vast is. Yes I know builders are vailiantly trying to hold onto many apartments with banks having a gun to their heads to prevent them dropping the price, and both sides (banks and builders) are just waiting until the budget sorts it all out for them and then we'll see what happens. Maybe a few purchasers will appear after that. And after that it will get even more interesting.
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Bronte you speak in riddles
 
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