Is €380-400k ridiculous money for a 2-bed apartment in Dublin 18?

MarkAnthony

Ctrl Alt Delete wrote: »

Sorry I have to ask.

Can you clarify are you talking about prices in 2014 or in 2008 when this thread was first started and the question asked?

Prices in 2018 when it's a land of rainbows and unicorns again, and the new RTE show is called Bertie.

Joking aside, I'm suggesting a functioning market (try and keep a straight face) in Dublin where accommodation is commensurate with the salary of those purchasing within the ICB guides.

So for someone working at google pulling in 60K with a partner pulling in 40K thats 350K + 20% deposit 420K max not priced out of 2 beds down the road. Of course you'd want to maintain c.300K 3 bed semis in commuterland (proper commuterland, Finglas, Crumlin et al distance not Wexford).

MarkAnthony

draiochtanois wrote: »

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While I agree it's simplistic, I'm not sure it's stupid. Well no more stupid than paying some of the amounts we (neg equity gen Xers) paid! :pac:

Eric Cartman

draiochtanois wrote: »

Sorry but that is so simplistic and stupid.

If you put a price per sq foot or sq meter it might make some sense or related it to rental yields.

But no you just pulled some numbers that you are fixated from somewhere....

Obviously some sort of 2 bed penthouse at 1700sq ft would be an exception but in general for a dublin 2 bed apt your talking 650-850sq ft , even at the large end that makes it 294 euro per sqft to buy for 250 k

Whereas for 280 per sqft you can get this detached 4 bed in rathfarnham for a little over my odds www.daft.ie/1950164

So i dont think my figures are too far out of reality

twowheelsonly

draiochtanois wrote: »

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Simplistic, yes. Stupid, no.

As already pointed out it's actually pretty close to sq ft prices. IMO apartment rental yields should have nothing to do with the price in the first instance.


His price quotes are actually pretty close to what I believe they should be as well.

draiochtanois

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draiochtanois

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jmayo

NotCominBack wrote: »

On a positive note she does have few years redundancy payment, and with a business degree & IS masters she shouldn't have too much trouble finding another job quickly if she wanted

sorry but if she was willing to pay 400-450k for an apartment in Sandyford then I wouldn't give much for her business savvy.
She thought that she could always be able to sell was the line I think.
Yeah always assume a bubble is going to go on forever. :rolleyes:

I was working in the area whilst these apartments were being built.
What was a microsoft car park one week was suddenly glass cubes supposedly designed by that famous architectural designer john rocha.
Anyone who bothered could see they were way overpriced.
Some of them actually came in pre built on the back of trailers from Europe and were slapped up quicktime.

NotCominBack wrote: »

I still don't understand why people like this just didn't drop off the keys to the bank and say, here ye go, Slan

Because this isn't the USofA where jingle mail exists.

starlit

I agree with you OP renting is dead money unless you saving for a place in the meantime. It depends if you see yourselves staying in the apartment long term? I would think its too expensive for an apartment regardless. If it had more bedrooms or if apartment was similar to that of a townhouse maybe.
My concern would be if you were to sell it or need to move in the future would you be able to sell it? More than likely you will not and end up in negative equity.

Houses are of better value if you can afford them and if you were to look outside the pricey areas even if it means leaving Dublin and going to the other outskirts of the city elsewhere. Depends as well on facilities needed, would ye like a family, get married etc, its handy having an extra bedroom, do you need to be near a shop/easy commute to city/work. Good use of public transport whether or not you drive. Those kind of factors can contribute where you live. Is it the area ye more interested in? Weigh out everything.

At the moment, buying a house and getting a mortgage works out more financially viable than renting as rent is incline to increase especially in Dublin. For the cost of paying that much for a place to live, a house would be worth a little bit more in the long run. Its easier to rent a house than an apartment if that was an option in the future to let it if you were to move and buy a house at later date. You could buy a house outside of Dublin in the surrounding counties for that much and get a decent sized house or look into the other areas outside the M50.

I'd advise not to buy an apartment at all but if ye do I suggest to look at an apartment with better value for what you get from it no different to a spec for a piece of technology or a car. If you can buy a 3 bedroom apartment for a similar price then it work out better value but then again a small house or town house might be a better option? Entirely up to what ye want.

I was reading this article from Irishtimes website yesterday which got me thinking.
http://www.irishtimes.com/life-and-style/people/clara-malone-36-i-bought-a-two-bed-apartment-for-450-000-i-never-thought-i-wouldn-t-be-able-to-sell-it-1.2060530

HeidiHeidi

doovdela wrote: »

I agree with you OP renting is dead money unless you saving for a place in the meantime. It depends if you see yourselves staying in the apartment long term? I would think its too expensive for an apartment regardless. If it had more bedrooms or if apartment was similar to that of a townhouse maybe.
My concern would be if you were to sell it or need to move in the future would you be able to sell it? More than likely you will not and end up in negative equity.

Houses are of better value if you can afford them and if you were to look outside the pricey areas even if it means leaving Dublin and going to the other outskirts of the city elsewhere. Depends as well on facilities needed, would ye like a family, get married etc, its handy having an extra bedroom, do you need to be near a shop/easy commute to city/work. Good use of public transport whether or not you drive. Those kind of factors can contribute where you live. Is it the area ye more interested in? Weigh out everything.

At the moment, buying a house and getting a mortgage works out more financially viable than renting as rent is incline to increase especially in Dublin. For the cost of paying that much for a place to live, a house would be worth a little bit more in the long run. Its easier to rent a house than an apartment if that was an option in the future to let it if you were to move and buy a house at later date. You could buy a house outside of Dublin in the surrounding counties for that much and get a decent sized house or look into the other areas outside the M50.

I'd advise not to buy an apartment at all but if ye do I suggest to look at an apartment with better value for what you get from it no different to a spec for a piece of technology or a car. If you can buy a 3 bedroom apartment for a similar price then it work out better value but then again a small house or town house might be a better option? Entirely up to what ye want.

I was reading this article from Irishtimes website yesterday which got me thinking.
http://www.irishtimes.com/life-and-style/people/clara-malone-36-i-bought-a-two-bed-apartment-for-450-000-i-never-thought-i-wouldn-t-be-able-to-sell-it-1.2060530

You do know the OP was written in 2008?

Eric Cartman

draiochtanois wrote: »

The construction costs are circa 100k so the assumption is the land is free and a developer makes no profit in kildare/wicklow/meath/louth ...

Apartments make little sense in tgese suburban centres anyway, also the cost to build an apartment would be offset by the retail units, car parking and other facilities that go with them. Take say sallins as an example, out by the train station there , a few blocks of apartments built , shops, carparking for park and ride , and some office units. After everything is wittled down i would say each of those apartments could be sold for 100k with a profit left over, in the boom sure they would have been 120-130k to vuild because even the tea boy was on 50k a year, even at that though, is there anybody here on boards now who would pay a cent over 100k to live in a 650sq ft 2 bed apartment thats a 45min 4-5 euro train journey to heuston station. And is near 4 shops and not much else. If there is, I really think they need to re-evaluate thibgs.

starlit

HeidiHeidi wrote: »

You do know the OP was written in 2008?

I didn't realise that!

Crumbs868

MarkAnthony wrote: »

I'm in a similar situation bought a city centre (ish) one bed for mental, mental money - still in neg equity. That said I'm €550 per month repayments in an apartment that would rent out at c.1100 per month. Even taking into account the management fee I'm €450 per month better off. The clincher for me is the hassle of dealing with landlords and moving.

Fingers crossed that I don't jinx it by saying this but I'm about to close on a 3 bed semi, lower mortgage but much higher repayments. Apartment will be rented out and all in all should just about look after it self in relation to cost. Even assuming rents don't keep pace with interest rises if I have to sink a few quid into it I can balance this against my pension payments.

Not an ideal situation but I don't consider myself screwed either.

Out of interest what will the interest rate on your apartment mortgage jump to once you come off the tracker, jump 3%?

MarkAnthony

Crumbs868 wrote: »

Out of interest what will the interest rate on your apartment mortgage jump to once you come off the tracker, jump 3%?

Without giving too much away we're in a bit of an odd situation which limits lenders, we'll go to 5.15% which is the guts of a 4% jump. Thankfully due to the way interest is offset against tax it should allow us to break even. Obviously many stay on the trackers, how long either the mortgage interest relief or the blind eye is turned to trackers continues is up for debate. Under stress we would be paying in each month, again that doesn't bother me per se as it's part of the retirement plan anyway.

Muahahaha

RedPandaDan wrote: »

Any time I read something like this, I always think back to that scene in The Savage Eye where a young mans parents reacts with disgust and lament their failures as parents when he confesses that he is renting...

that scene on the Savage Eye was legendary, as was that whole episode on the Irish obsession with property

lima

Muahahaha wrote: »

that scene on the Savage Eye was legendary, as was that whole episode on the Irish obsession with property

House to meet you!

johnnyskeleton

Eric Cartman wrote: »

Apartments make little sense in tgese suburban centres anyway, also the cost to build an apartment would be offset by the retail units, car parking and other facilities that go with them. Take say sallins as an example, out by the train station there , a few blocks of apartments built , shops, carparking for park and ride , and some office units. After everything is wittled down i would say each of those apartments could be sold for 100k with a profit left over, in the boom sure they would have been 120-130k to vuild because even the tea boy was on 50k a year, even at that though, is there anybody here on boards now who would pay a cent over 100k to live in a 650sq ft 2 bed apartment thats a 45min 4-5 euro train journey to heuston station. And is near 4 shops and not much else. If there is, I really think they need to re-evaluate thibgs.

That doesnt sound bad at all, compared to the €1k+ rents in suburban Dublin with even lobger bus rides in