Scholarstown - Why I Rejected

[Scholarstown]

Hi,

Last week, I was offered a social affordable apartment in Scholarstown Well in Rathfarnham.

The apartments were quite nice. 2 bed (75sq m) for €240k and 3 bed duplex (92sq m) for €275.

It was a tough decision to make but the cons definitely outweighed the pros.

Reasons Why I Didn't Go Ahead

1. House Prices are due to fall by 10% in 2009 - according to the latest report from Perm. TSB/ESRI.

2. Goodbody Stockbrokers (16 Feb release) are expecting to house prices to fall by 40% from peak (Jan 07) to plummet (2010 onwards).

3. Clawback is based on the sale that the house will go for today on the open market. The clawback does not take into account the expected fall in the market.

4. Negative Equity - if the pundits such as Goodbodys are correct - I'll be in negative equity very fast. The clawback percentage will be less than the fall in value of the market.

5. Rent - if I decide to emigrate in 7 years or so, I will not be able to rent out the premises. If I did, I could lose the property.

6. Shopping Centre/ Creche - Deane Homes haven't even laid down a brick for this community centre.

Despite the fact that Scholarstown is a loveley development, I can't risk placing a deposit on this.

I'm going to take my name off the list and re-apply.

You never know, when my name comes back up in 18 months time, I might just be able to afford a house on the private market in an area of my choosing.

Any similar thoughts out there?

 

[dar82]

I also rejected an afforable offer in a different area, at last there is somebody on this site talking sense and looking at the bigger picture! You made the right decision, all those mugs that buy will be kicking themselves further on down the road! This country is heading for the shi**er and so is the property market, so sit tight and save like mad and get a bargain in 12-18 months!

 

[promoter]

I also rejected an afforable offer in a different area, at last there is somebody on this site talking sense and looking at the bigger picture! You made the right decision, all those mugs that buy will be kicking themselves further on down the road! This country is heading for the shi**er and so is the property market, so sit tight and save like mad and get a bargain in 12-18 months!

I agree with your and everyone else's predictions about house prices. The reason I'm buying at the moment is because I think it will be extremely difficult to get a mortgage down the road. I'm conscious that the banks being recapitalised are required to make mortgages available for FTBs and EBS have their €100m AH fund but if the whole thing goes down the shi**er so will the credit and you might not be able to get a mortgage. David McWilliams has an interesting piece on this: [broken link removed]

Cheers

 

[dar82]

Valid point, but id rather rent for cheap if things go really bad than pay a big mortgage on house that is in massive negative equity.