Just because it's quoting 1.75 doesn't mean that they'll agree to sell it for that much. The original guide price was 600,000 and they ended up spending 1.15 million. given the costs of renovation, time involved and interest payments, they are already making a significan loss if they sell it for that much
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They may have no choice. They will only be able to sell it for an amount that someone is prepared to pay.
G
Guest107
Guest
Their bank manager may make them 
Great quotes from the estate agent article:
"There’s a new player in the property market who will have you dripping with envy: the twentysomething property developer"
or
"they stand to make a healthy profit from their six-month slog"
Poor young uns. Auctioneers, banks & builders took their money as easy as taking candy from a baby.
Keep up the great work whathome!
"There’s a new player in the property market who will have you dripping with envy: the twentysomething property developer"
or
"they stand to make a healthy profit from their six-month slog"
Poor young uns. Auctioneers, banks & builders took their money as easy as taking candy from a baby.
Keep up the great work whathome!
Did some bank really loan them that much on the assumption that it was a fairly short-term investment?
600K was "affordable" for them but they ended up bidding 1.15m? Then they had another 250K lying around to rennovate but ended up spending 500K? Methinks there are some other players not mentioned in the article.
The market doesn't care what price you paid for an asset
Agreed, but they rejected an offer of 1.9million only a month ago. I wouldn't read too much into the asking price, it could be a teaser - the sale price would be much more indicative.
It was withdrawn at the auction in May not July. The market has changed since then IMO.
It's wilting on the market for months, it doesn't look like any teaser is working.
Raskolnikov
Registered User
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You're forgetting about solictor and estate agent fees, so you can probably shave another €50,000-€60,000 off the proposed selling price.
Like exile said, there must be someone backing this couple up, there's not a hope in hell a beautician and electrician in their mid-twenties could afford to spend €1,753,000 on a property.
G
Guest107
Guest
well the banks have been somewhat too acommodating of late otherwise this thread would never have lasted as long as it did would it .
Raskolnikov
Registered User
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- 351
Read the article again. They had a mortgage on each of their homes. They would have sent their debt easily into +€2,000,000 territory.
Frightening really.
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Guest107
Guest
From that article on the previous page .
As they went to auction with a good plan namely to buy for €600k and fix up for €250k I would dearly love to know who approved the business plan to buy for €1.15m and fix up for €500k . The money came from somewhere !
Thats an overshoot of €800k
of borrowed money or almost 100% of their initial budget .€2m sounds right but they have no negative equity at this moment in time as they bought in Stilllorgan years ago.
Raskolnikov
Registered User
- Messages
- 351
Touché.From that article on the previous page .
As they went to auction with a good plan namely to buy for €600k and fix up for €250k I would dearly love to know who approved the business plan to buy for €1.15m and fix up for €500k . The money came from somewhere !
Thats an overshoot of €800k
€2m sounds right but they have no negative equity at this moment in time as they bought in Stilllorgan years ago.
Bank of Mam and Dad.
J
JohnG
Guest
Very slightly off topic.....
Imagine they sold at the breakeven number of about €1.8m.
What would the PTSB House Price Index say? Would it be included as a 56% increase in 12 months???
When you think about the amounts spent on extensions / attic conversions / new kitchens etc. you would wonder how much the price increases of recent years are overstated.
Imagine they sold at the breakeven number of about €1.8m.
What would the PTSB House Price Index say? Would it be included as a 56% increase in 12 months???
When you think about the amounts spent on extensions / attic conversions / new kitchens etc. you would wonder how much the price increases of recent years are overstated.
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phoenix_n
Guest
R
renter
Guest
Have been following this debate for the last week or so here, just decided to join this forum today. Here's our story...
Bought a few years ago in Dublin suburb for typical reasons - in a steady relationship, rent is dead money, everybody needs a place to live, prices likely to keep going up, etc. Decided to cut back on unafforable luxuries early on - sold new car, got rid of loan, bought 1 second hand car instead of having 2, used public transport. Had planned to stay for 3-5 years in house before moving out of Dublin for family/quality of life reasons if work allowed same.
It was looking like we would move/sell in 2007, hoping that house prices would stay fairly high as last of SSIA money becomes available. However got a little spooked recently that house prices might fall, so decided to sell 3 bed semi. Was on the market for only a few weeks after the initial price was set by the EA a bit lower than typical ones in the area to generate interest. Probably had about 10 viewers and 2 serious bidders which brought price close to other ones in the area, so we decided to take offer fairly quickly. Have recently been bidding on a property outside Dublin which would require building work. We feel that the current bid price is a little overvalued because there is another keen bidder also. As we learned with our sale, all it takes are 2 keen bidders to get price up.
In the meantime, we are going to rent for a while in Dublin while we plan our next move.
Some things heard directly or indirectly from 4 different people in property business recently - 1. "market softening last few months, sell immediately"; 2. "would have >10 seriously interested people in a house a few months ago, now only 2 or 3 typically"; 3. "market still strong"; 4. "if market does fall, apartments outside M50 will be hit worst".
IMO, the public sentiment is 50/50 re house prices depending on personal cirumstances. Reckon that under 30-35's are generally more optimistic like we were a few years ago buying for the first time and hoping prices keep rising. Maybe it's because they have'nt seen any hard times yet in Ireland. Approaching middle age now, it seems is when a broad mind exchanges places with a narrow waist. Anyway, IMO, it will take a few months to see hard statistics like falling prices in the PTSB/ESRI house price index before the more optimistic people start to turn.
George Lee of RTE had an interesting programme back a few months ago called BOOM (I think) about the rise in Irish economy and personal debt, etc. over the last number of years. Seemed to be warning the good times have to end eventually as many people have said over the years. He may well be scripting for a new programme called BOOM OVER by the end of 2006. Or maybe it will be a damp morning in November when one is stuck in the M50 roadworks traffic after seeing effect of probable October rise in interest rates that many more people might see that this present scenario is not sustainable. On the otherhand SSIAs might have a smoothing effect for the likely downturn.
Bought a few years ago in Dublin suburb for typical reasons - in a steady relationship, rent is dead money, everybody needs a place to live, prices likely to keep going up, etc. Decided to cut back on unafforable luxuries early on - sold new car, got rid of loan, bought 1 second hand car instead of having 2, used public transport. Had planned to stay for 3-5 years in house before moving out of Dublin for family/quality of life reasons if work allowed same.
It was looking like we would move/sell in 2007, hoping that house prices would stay fairly high as last of SSIA money becomes available. However got a little spooked recently that house prices might fall, so decided to sell 3 bed semi. Was on the market for only a few weeks after the initial price was set by the EA a bit lower than typical ones in the area to generate interest. Probably had about 10 viewers and 2 serious bidders which brought price close to other ones in the area, so we decided to take offer fairly quickly. Have recently been bidding on a property outside Dublin which would require building work. We feel that the current bid price is a little overvalued because there is another keen bidder also. As we learned with our sale, all it takes are 2 keen bidders to get price up.
In the meantime, we are going to rent for a while in Dublin while we plan our next move.
Some things heard directly or indirectly from 4 different people in property business recently - 1. "market softening last few months, sell immediately"; 2. "would have >10 seriously interested people in a house a few months ago, now only 2 or 3 typically"; 3. "market still strong"; 4. "if market does fall, apartments outside M50 will be hit worst".
IMO, the public sentiment is 50/50 re house prices depending on personal cirumstances. Reckon that under 30-35's are generally more optimistic like we were a few years ago buying for the first time and hoping prices keep rising. Maybe it's because they have'nt seen any hard times yet in Ireland. Approaching middle age now, it seems is when a broad mind exchanges places with a narrow waist. Anyway, IMO, it will take a few months to see hard statistics like falling prices in the PTSB/ESRI house price index before the more optimistic people start to turn.
George Lee of RTE had an interesting programme back a few months ago called BOOM (I think) about the rise in Irish economy and personal debt, etc. over the last number of years. Seemed to be warning the good times have to end eventually as many people have said over the years. He may well be scripting for a new programme called BOOM OVER by the end of 2006. Or maybe it will be a damp morning in November when one is stuck in the M50 roadworks traffic after seeing effect of probable October rise in interest rates that many more people might see that this present scenario is not sustainable. On the otherhand SSIAs might have a smoothing effect for the likely downturn.
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bren2002
Guest
This thread is a fascinating read.
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phoenix_n
Guest
Since you sold have you noticed any prices changes (increase/decrease) in your suburb ?
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renter
Guest
Prices seem to be fairly static since selling in last few weeks. There are plenty of houses still for sale which were on the market before we decided to sell ours. Vendors might be holding out to see what happens in September but I get the impression from glancing at the myhome map for the area that there is more availability than previously. Again, this is only an impression, so best to wait to see actual numbers and prices in next few months.
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phoenix_n
Guest
Did you find it hard to go back to renting or were you just happy to 'bank' the money and wait your next move.
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