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    #32
    Fighting Irish
    Registered Users Posts: 7,065 ✭✭✭Fighting Irish


    Senna wrote: »
    Cant believe how many people think this is a good idea. You can dismiss 'minor details' about the scheme, but it is those details that will come back to haunt you;

    dawt


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    #33
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    skippy09 wrote: »
    It has everything to do with suiting me, i am a 30 yr old single mother working to the bone to try and bring my 6 year old daughter up in a stable environment. I cannot get a mortgage without a deposit, i don't have other resources to come up with a deposit. Yes the market is unstable at the moment and i am taking a risk, but it is a risk well worth it in my eyes to be able to stand on my own two feet whilst putting a roof over my daughters head!!! The only thing i have to lose here is if the the price of my house goes up in 3 years and at that stage i can still walk away with just the loss of the deposit that i never would have been able to save anyway.

    Skippy09- while I appreciate fully what you're saying- and stability is a massive thing in a young child's life- you're really not acting in a rational manner if you don't study the implications of the various possible scenarios......

    1. Both rents and property prices are still falling. You are tying yourself into paying what was originally above market rent, but now considerably above market rent, for a 3 year period.

    2. While your 'rent' may be a deposit- its wholly irrelevant if the depreciation of the property is greater than the gross rent paid. I don't have a crystal ball- but I do have figures for property falls since August 2006. If you extrapolate from elsewhere (and the Irish problem is a lot worse than elsewhere), residential property prices are likely to fall by over 60% from their peak values. At peak values- rental yields averaged ~4.2%. Normalisation of rental yields would be around 7%. Allowing for the fall in property values- rents should also fall- but by a much smaller 15-20%

    3. You normally have to source your mortgage on the open market at the end of the 3 year period. Can you point me at a single mortgage providor who would accept the agreed price you signed a contract for today- at market prices from 3 years hence? Further- even allowing for the fact that some schemes such as Heuston South Quarter are offering a 10% discount if prices continue to fall (which they are)- this 'discount' is very possible only a fraction of the potential downside in property prices. You are still going to have to get a valid valuation for the o/s amount due on the agreed sale price.

    4. You say the only thing you are loosing if you decide to walk away at the end of the day is the 'deposit' that you would never have been able to save. That deposit- is in fact, an elevated 'rent'- over and above the going market rate for renting the property. Have a look at Heuston South Quarter- and compare the open market rent (Daft.ie) with the going rent-to-buy rent- and you'll be shocked. It can in some cases be as much as 30-40% more than the open market rent. This is what you are loosing, if you choose to walk away- you could have simply rented the property on the open market for the intervening period- at a far lower rate.

    5. I do appreciate that having a child changes your priorities- but if you're working fulltime, and are desperate to have a roof over your head- surely you owe it to yourself more than ever to evaluate what you're tying yourself into? When you are making what is probably the largest financial decision of your life- you need to detach yourself from the emotions of the situation. I am not suggesting that its all clouds on the horizon- I am stating that contrary to the saying- not all clouds have silver linings- and with this scheme- the only silver lining is for the developers who are leveraging their properties to provide themselves with cashflow. Its very clever of them- and very impressive that they're not being questioned over it more. Whoever decided to come up with the scheme was incredibly astute.


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    #34
    Lollymcd
    Registered Users Posts: 802 ✭✭✭Lollymcd


    Nearly went for this scheme in May 2008, just wondering how people have gotton on and what the market value of the apartments are now. Is the complex still a building site? Have they filled any of the retail units? I think I heard Superquinn was supposed to go into one. I must take a trip out there...


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    #35
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭Oliver1985


    Lollymcd wrote: »
    Nearly went for this scheme in May 2008, just wondering how people have gotton on and what the market value of the apartments are now. Is the complex still a building site? Have they filled any of the retail units? I think I heard Superquinn was supposed to go into one. I must take a trip out there...

    A friend of mine got tied into this year and half ago price fixed at 270k for a 2 bed!!
    Same apartments going for 175k now!
    I looked at it but didnt go through with it!!

    Whick estate are you talking about Hsq?


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    #36
    Lollymcd
    Registered Users Posts: 802 ✭✭✭Lollymcd


    Oliver1985 wrote: »
    A friend of mine got tied into this year and half ago price fixed at 270k for a 2 bed!!
    Same apartments going for 175k now!
    I looked at it but didnt go through with it!!

    Whick estate are you talking about Hsq?

    Yes, HSQ, we looked at two apartments one in the same building as the show apartment and one that looked towards the Phoenix Park over a HUGE crater which was going to be another block but the foreman said was on hold, that was in 08.


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    #37
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭Oliver1985


    Yeah the prices there where crazy and people would really struggle to gets funds to buy !!

    I read in the paper there last week that superquinn are starting to fit out!!


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    #38
    Lollymcd
    Registered Users Posts: 802 ✭✭✭Lollymcd


    Oliver1985 wrote: »
    Yeah the prices there where crazy and people would really struggle to gets funds to buy !!

    I read in the paper there last week that superquinn are starting to fit out!!

    That's cool, I thought it was just a ploy to get folks moved in!!!


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    #39
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭Oliver1985


    Lollymcd wrote: »
    That's cool, I thought it was just a ploy to get folks moved in!!!

    Yeah you would not know!! Superquinn put there names down for units in Hsq and in clongriffin!! Still not word on the clongriffin one!!


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    #40
    Lollymcd
    Registered Users Posts: 802 ✭✭✭Lollymcd


    Totally wrong forum to post this in but seen as how you've heard about Superquinn in HSQ and Clongriffin have you heard if the retail units in Spencer Dock are due to be filled? So desolate :(


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    #41
    Oliver1985
    Registered Users Posts: 1,304 ✭✭✭Oliver1985


    Lollymcd wrote: »
    Totally wrong forum to post this in but seen as how you've heard about Superquinn in HSQ and Clongriffin have you heard if the retail units in Spencer Dock are due to be filled? So desolate :(

    No idea !!! One thing you could do is look at planning apps on dublin city council you might see some recent ones!!


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