Bought apartment 12 months ago - value is still the same

U

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I bought an apartment 12 months ago from the plans. They still haven't been completed (but they should have some show apartments ready in the next month or two) and some are still available for sale but they are still selling for the same amount as they were 12 months ago.

Is that a sign of a "bad investment" or would the value of a property normally only increase when it physically exists?
 
If you have not improved , remodeled or redecorated the place in any way, why would you expect someone to pay more for it than you did?

I'm afraid it might be a taste of the new global property market as it begins its inevitable journey back to normality...
 
would the value of a property normally only increase when it physically exists?
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Is this one of those Zen things? Like 'what is the sound of one hand clapping'?
 
Unregistered said:
I bought an apartment 12 months ago from the plans. They still haven't been completed (but they should have some show apartments ready in the next month or two) and some are still available for sale but they are still selling for the same amount as they were 12 months ago.

Is that a sign of a "bad investment" or would the value of a property normally only increase when it physically exists?
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i'd be supprised if they are actually still the same, they have probably fallen but builder won;t admit.

A poorly timed investment, I'd have looked into the market at the market in more detail before buying off plan! If you can hold on to it for 12 years + you way make some money on it (wish I was kidding). If not, either cut your losses/try to negotiate a new purchase price.
 
Unregistered said:
Why would you expect someone to pay more for it than you did?

ah but sure isnt that why people are buying these days? dont be paddy last on the great irish property pyramid..
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Unregistered said:
Is that a sign of a "bad investment" or would the value of a property normally only increase when it physically exists?
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If this was primarily as your principal private residence rather than a pure investment then does it really matter?
 
I'm afraid that smell you are catching in the wind is freshley brewed coffee my old son and if you prick up your ears you might just may be able to make out a fat bird clearing her throat.
 
Unregistered said:
I bought an apartment 12 months ago from the plans. They still haven't been completed (but they should have some show apartments ready in the next month or two) and some are still available for sale but they are still selling for the same amount as they were 12 months ago.

Is that a sign of a "bad investment" or would the value of a property normally only increase when it physically exists?
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U can only be sure if they sell (at all) for that price. As I can see house prices are coming down specially these off plans, u should b careful.
 
To the original poster...first of all, ignore the troll.

I wouldn't be overly concerned that prices haven't risen off plans like this. If the house/apartment is in a nice or developing area and it's appealing then the price should rise eventually. There is definitely evidence that price rises are slowing...the % points are getting smaller.

As Clubman pointed out if this is your primary residence then you shouldn't be overly worried. I own one property (my ppr) which I also bought off plans and between the time I bought and the time it was completed the price did not change...and it is in a fairly desirable area where houses are usually snapped up.

Look at the bigger picture and don't expect huge rises from the outset.
 
Unregistered said:
I'm afraid that smell you are catching in the wind is freshley brewed coffee my old son and if you prick up your ears you might just may be able to make out a fat bird clearing her throat.
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She is not fat. She is curvy or overweight...

:)
 
Unregistered said:
i'd be supprised if they are actually still the same, they have probably fallen but builder won;t admit.

A poorly timed investment, I'd have looked into the market at the market in more detail before buying off plan! If you can hold on to it for 12 years + you way make some money on it (wish I was kidding). If not, either cut your losses/try to negotiate a new purchase price.
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Yeah, it was very poorly timed. We'd have held off and bought a house if we'd known that the stamp duty for 1st time buyers was to be abolished 6 months down the line! Apart from that, we seem to have bought just as prices seemed to start levelling off.

When you say "looked into/at the market in more detail", what exactly do you mean? We did think about if it'd be a nice place to live, and according to most people, yes, it would be: nice area, very close to the train station, the beach, few pubs, restaurants... we also thought it would be fairly easy to rent because it's so close to the train station. So we could do that in a few years "if we end up needing more space" (as she puts it). So, even as an investment in that case, it'd be grand.

Anyway, as ClubMan rightly said, we did buy it to live there so it doesn't REALLY matter. We were just wondering if it was a bad sign or normal or what.
 
Gabriel said:
To the original poster...first of all, ignore the troll.

I wouldn't be overly concerned that prices haven't risen off plans like this. If the house/apartment is in a nice or developing area and it's appealing then the price should rise eventually. There is definitely evidence that price rises are slowing...the % points are getting smaller.
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Cheers Gabriel. Good to hear that. It's probably a good thing the profits are going down too: maybe now people will be able to move out of their ma's gaf at a half decent age (probably about 22, 23 I'd say?).

It's not right sleeping in the sitting room floor on a blow up mattress on a Saturday night.
 
People in this country will have to get used to the fact that property prices can go down as well as up. Yes property does go down occasionally, and yes they have gone down in Ireland in the past (most of the 80s). I'd be happy to supply the facts to anyone interested.

Whether prices will fall is another issue. But to the original poster- make sure you can and that you will psychologically WANT to pay for something that may fall in value over the next few years.
 
Unregistered said:
People in this country will have to get used to the fact that property prices can go down as well as up. Yes property does go down occasionally, and yes they have gone down in Ireland in the past (most of the 80s). I'd be happy to supply the facts to anyone interested.
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Hi,

I'd be interested in seeing that evidence please. Genuinely. Not necessarily doubting you, I just wasn't aware that prices fell (to any great extent) in Ireland during the 80's. I am aware of what interest rates did.
 
Don't worry, when all the SSIA's are cashed in as deposits house prices shall rise agian..if only for a couple of years....
 
Van der Hoop said:
Don't worry, when all the SSIA's are cashed in as deposits house prices shall rise agian..if only for a couple of years....
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I fear that SSIA's coming to the rescue of the Irish property market may be wishful thinking on behalf of the vested interests.

Only a minority have stated that they actually plan to spend the money and then of that group there's the spending on cars/holidays etc. rather than on property.

Besides, the bulk of the money comes in early 2007 and I suspect by that time the property market will have lost its shine and nobody will want to throw away their nesteggs on it.
 
people in this country have a genetic need to own their own home. for that reason, as long as we dont suffer a major population decline, the property market wont collapse. the worst that can happen is that prices stagnate and dont keep pace with inflation which although technically the same as a price drop is pyschologically different.

people talk about vested interests and pyramid schemes. the thing here is that practically every irish citizen apart from some living in LA housing for the long haul, either has a vested interest in this particular pyramid scheme, wants to be involved, has family involved or is being groomed by their parents from birth towards involvement.
pyramid schemes collapse when people start to cash in or new bottom rung members stop joining.
i see neither happening in the short term in relation to our house market so dont think the prices will go into decline. what does seem to be happening is that apartments, a fairly new thing here are being increasingly seen as a less atttractive option - similarly priced as houses yet terrible lack of space and high maintenance charges etc. high density apartments in city centres are ok and justified and will always be saleable but developers here are throwing them up anywhere there is a spare sq.metre of land, even in little country towns where land is cheap. as people cop on to this it will make them ever more difficult to sell.
 
jaypers you just know we're heading for trouble when the vested interests who have hyped and pumped the property bubble are now trying to hide behind the ordinary citizens of Ireland.

I can see it now...Pop goes the bubble and then " er it wasn't our fault .. everyone was doing it !!"
 
Unregistered said:
people in this country have a genetic need to own their own home. for that reason, as long as we dont suffer a major population decline, the property market wont collapse. the worst that can happen is that prices stagnate and dont keep pace with inflation which although technically the same as a price drop is pyschologically different
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You are of course 100% correct. But there will still be people harping on about "the bubble" in 2007. They'll point out that the great price raise is over and that price increases have been declining slightly over the past couple of years - which inevitably means the bubble is about to burst, of course. They'll be saying it in 10 years time too no doubt.
The trouble is they miss this very obvious fact.

As an investment you can make your mind up as to how the market will perform. But as your home/ppr, don't go telling me it's a mistake to buy. That stinks of the 'I can't afford to buy one so I'm going to rubbish the whole thing' mentality. Very poor.
 
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