Allsop auction of 80 properties on behalf of the receivers

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Brendan Burgess

Brendan Burgess

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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
 
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.
 
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.
 
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
 
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.
 
No, it means that it is currently rented out to a sitting tenant at that price
 
demoivre said:
Hard to see it only making 85k with that yield ! 12.7% before outlay !
Click to expand...

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
 
This auction takes place today.

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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.
 
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.
 

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.
 

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

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Brendan
 
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