Apartment price

[micar]

Hi

I am very interested in an apartment near Dublin city center.

It's been reduced 3 times since October 2010. From €320k, to €288k and recently (as in the two days) to €255k.

The builders went into receivership and this was why they initially were reduced to €320k. As far as I am aware, only half the apartments have been sold.

I did put in an offer of €180k at the beginning of May and this was rejected. I was advised by the estate agent that €288k was the bottom price.

I called two days ago and put in an offer of +€200k. The EA called by to say that it was rejected but that the apartment has been reduced to €255k. It would still be outside my price range. The EA advised that €255k is now the bottom price.

As far as I am aware, I am also the only person to have put in an offer.

I was going to put in another offer of 82.5% of the current asking price and then 85% if rejected. I suppose that that would be max i could put in as I would need to reserve some cash for the management fees, stamp duty, solicitors fee and to kit the place.

I suppose now that they are desperate to sell these.

I also had a look at another apartment. The asking price is €225k and the current offer which is most likely to be accepted is €190k and this is 15.5% off the asking price.

Just looking for advise. Surely in these times, they would accept between 80%-85% of the asking price.

Thanks

Micar

 

[oldnick]

Considering you can't afford more than a little over 200K and considering that the EA won't presently come down there's nothing you can do except wait. If half the apts are still empty and if a receiver is now in charge then it would appear there's a good chance he'll reduce further.

Don't think however that property prices in Dublin are all falling. The last few months have seen a small increase each month according to official CSO figures, (although every type of property and every area vary). If the receiver is not under great pressure from creditors he may decide to hold off reducing the price in the belief that he'll get 255k.

If you really like that building then you obviously have to watch sales on an almost non-stop basis and see how they go. If they do sell at high-ish prices then you're out of luck. If they don't move you'll be able to strike a good deal. Patience and constant observation is your best recourse in this type of market.

Am I right in guessing this is at least a two-bedroomed apt in a trendy area like Grand Canal or similar ? Please don't say it's a one bedroomed.

 

[micar]

Hi

Thanks for the response. It's a 3 bed apartment with the west facing living room/kitchen and south facing main bedroom. It's bright. It's very near to where I am currently living and where I'd like to live. There are other benefits to buy there as well. If needed I could always rent out one of the rooms. I don;t think I'd need to rent out the other one.

Would preferably want a 3 bed and would go no where near a one bed.

I just found it odd that the day that I called to put in another offer was the same day that the price has been dropped. Paranoia setting in !!!!!!

Micar

 

[oldnick]

I want it for my daughter !
Actually, micar, you know you can get up to €10.000 rent tax-free and without the usual legal hassle and fees normally associated with renting -on the basis that you are living in a property and renting out rooms.
I'm just mentioning this in case you didn't know about the "rent-a-room" scheme. It's a great way for young first-time buyers to pay their mortgage or make money.
Good luck!

p.s.. always buy with car-parking included.Even if you don't have car you can rent the space if near city centre.

 

[croker]

This may sound weird but i would actually do the opposite of what you did!
I would offer 200K and tell the EA that if the place is still on the market next month my next offer will be 190K. That might focus their minds

 

[micar]

Hi

Thanks for the responses.

I was going to rent one of the rooms for a while anyway. I am aware of the "rent a room" scheme.

It does come with a car parking space but I had hoped to purchase a second one. I do have a car but I commute to work, so the car would be there all day. Generally, it's only used once or twice a week and at the weekends.

I have been doing some sums as to the most I could offer. I'll put in another one and see what comes back.

Micar

 

[ryaner]

Don't think however that property prices in Dublin are all falling. The last few months have seen a small increase each month according to official CSO figures, (although every type of property and every area vary).

The CSO figures are almost useless these days due to the low volume of transactions and massive diveristy between different areas. Just look at the 1 bed apartment in Cavan that didn't sell at €20k as wide example of how different things are.