Serviced Sites

[elearning]

I have the option of buying a serviced site. I would like to read up on this type of an option. Does anyone know where I can to read up on the ins and outs of purchasing serviced sites in ireland.

Regards and Thanks

 

[auto320]

If its an individual serviced site in an area that you want to build a house in, then its pretty straightforward and you just have to concern yourself with planning issues. If however its a site in a housing development (more likely), you are effectively helping a developer lay off some of his risk on a development that he is either over-stretched on, or that he doesn't have confidence in in the long term.

Unless you are an experienced builder or developer, and you are sure that you can build and sell on a house quickly, I would advise against this option. Working on someone else's development like this leaves you very exposed. This kind of business was a feature in Ireland back in the bad old days in the 1970s, when large developers put in roads and services and then effectively pushed the risk out to small players, some of whom survived and went on to great things, but many of whom had the opposite experience.

 

[Lobby]

Its not necessarily the case that a developer is overstretched or wants to lay off some of the risk.

It may be that there are 4 or 5 house plans you can pick from and the developer will build your choice (price varies obviously). I have seen this type of dev around where the owners can have some variation from their neighbours (still restricted though). Usually it suits people who cannot get planning permission for a one off dwelling.

Can you tell us what type of serviced site it is?

 

[auto320]

Its not necessarily the case that a developer is overstretched or wants to lay off some of the risk.

The only reason a developer goes down this road is because he lacks confidence regarding selling out the entire scheme, or because his bank has told him to lay off his bet. Why would a confident developer sell off some sites, then have to go and develop another field six months later when he had sold out all his own builds? My own view on these types of sites in Ireland is that they are risky, albeit a simple way for say two people to build their own pair of semis.

I have seen serviced sites in other markets that were a better bet, but this was in countries where it is normal for people to buy a serviced site and build an individual style of house. Many countries actually encourage diverse designs in this context, poles apart from the housing schemes you see in Ireland. In an Irish context, where all the houses will be more or less exactly the same, there is little point in a developer selling off sites unless he is nervous or stretched.

If however the sites are designed to take large one-off high-end houses, it is a different matter, and well worth a punt (depending on location of course).