What would you bid? 4 bed, Dundrum

El Stuntman · 02-07-2009 1:58pm

gurramok wrote: »

Or as some naieve bulls here say, extend the mortgage to 35years to make it 'affordable' and make them a cashcow for the bank!!

35 year mortgages should be illegal, they're on a par with the Tony Soprano school of banking (speaking as a banker myself

)

if you need a 35 year mortgage, you can't afford it

D3PO · 02-07-2009 2:01pm

El Stuntman wrote: »

35 year mortgages should be illegal, they're on a par with the Tony Soprano school of banking (speaking as a banker myself )

if you need a 35 year mortgage, you can't afford it

back to this topic again hey

El Stuntman · 02-07-2009 2:02pm

The_Chopper wrote: »

The rest of the post I snipped was excellent.

However I disagree with point 2. From my own research I think 1 of 2 things will happen

1. Houses will drop a little more before bottoming out
2. The coutry will go broke and houses will drop around 900% i.e a 500k house will now cost 50k

This is largely linked to how our economy comes out of the recession

Ricky this is a load of crap!

to take scenario 1 to task; houses are still grossly overpriced by any metric you wish to use. They are still firmly in bubble territory except there are now no longer any factors to keep them there. All the price pressures are on the downward side. They will continue to fall and do so for years until they reach a level that is consistent with their actual economic value

scenario 2; they can't drop by 900%, I thought you were a poker player and hence had a grasp of mathematics :pac:

El Stuntman · 02-07-2009 2:02pm

D3PO wrote: »

back to this topic again hey

you're right, let's pretend I never mentioned it

amacca · 02-07-2009 2:04pm

The_Chopper wrote: »

The rest of the post I snipped was excellent.

However I disagree with point 2. From my own research I think 1 of 2 things will happen

1. Houses will drop a little more before bottoming out
2. The coutry will go broke and houses will drop around 900% i.e a 500k house will now cost 50k

This is largely linked to how our economy comes out of the recession

Not disagreeing by any means but what parts of your research suggested the possibility of both 1 and 2 in your post?

For 1 do you see possibility of govt getting finances and unemployment under control + wages remaining static therefore less repossessions, taxes not increasing much further etc

For 2 do you see us defaulting on our national debt and the eu or imf rescuing us etc

From your research which do you think is the greater possibility?

Again, curious to hear your viewpoint, not disagreeing.

D3PO · 02-07-2009 2:12pm

El Stuntman wrote: »

scenario 2; they can't drop by 900%, I thought you were a poker player and hence had a grasp of mathematics :pac:

id be worried if he is. His example is a 1000% drop and not 900% anyway

:pac:

the_syco · 02-07-2009 3:46pm

El Stuntman wrote: »

if you need a 35 year mortgage, you can't afford it

I find it amusing that the house is now 35 years old... and it is now being sold

Check what the insulation (if any) is? It's 35 years old, so may have very little, or none.

Going by the sheds in the back garden, I'm guessing that it's the 3rd one from the right. As not all the houses have the conversions done, I'm unsure when they were put in. If they were done recently (last 15 years) there's a chance they have decent insulation, but I doubt it.

ZYX · 02-07-2009 4:33pm

So that makes 37 replies and only 2 people have answered the OPs question.
Actually this makes 38:)

The_Chopper · 02-07-2009 4:37pm

El Stuntman wrote: »

Ricky this is a load of crap!

to take scenario 1 to task; houses are still grossly overpriced by any metric you wish to use. They are still firmly in bubble territory except there are now no longer any factors to keep them there. All the price pressures are on the downward side. They will continue to fall and do so for years until they reach a level that is consistent with their actual economic value

You know I always like the most radical of ideas

The_Chopper · 02-07-2009 4:39pm

Glowing wrote: »

Hi there,

We're first time buyers, not rushing to buy but seriously looking and have had mortgage approval.

We've recently found this property which ticks all the boxes for us - given its only a 5 min walk from Dundrum village and the Luas and is situated on a lovely secluded st ...

http://www.myhome.ie/residential/search/brochure/5-laurel-drive-dundrum-dublin-co&-city/OLKUA400070

What would you bid? Currently on the market for 524,000 ...

Thanks!

p.s perhaps you wouldn't bid at all?

ZYX wrote: »

So that makes 37 replies and only 2 people have answered the OPs question.
Actually this makes 38:)

OP if you want to bid on the house, I would bid somewhere between 10% - 100k less than the asking price and see how you get on

bobbiw · 09-07-2009 4:08pm

Glowing wrote: »

Hi there,

We're first time buyers, not rushing to buy but seriously looking and have had mortgage approval.

We've recently found this property which ticks all the boxes for us - given its only a 5 min walk from Dundrum village and the Luas and is situated on a lovely secluded st ...

http://www.myhome.ie/residential/search/brochure/5-laurel-drive-dundrum-dublin-co&-city/OLKUA400070

What would you bid? Currently on the market for 524,000 ...

Thanks!

p.s perhaps you wouldn't bid at all?

Find out what they owe on their mortgage and offer 10% over that.

I would think 250-275 would be very fair.

_aggie_ · 17-11-2009 10:52pm

just found this thread.. unbelievable that the same house, 4,5 months later is still on sale but this time for 399,950. that's a major drop within 5 months!

meglome · 18-11-2009 1:03am

_aggie_ wrote: »

just found this thread.. unbelievable that the same house, 4,5 months later is still on sale but this time for 399,950. that's a major drop within 5 months!

And yet not enough for anyone to be stupid enough to buy it. Although it frightens me the number of people I come across that are talking about houses being good value now, we really haven't learned anything.

stepbar · 18-11-2009 1:27am

....and that's the very reason why if it doesn't add up as an investment (how ever you add it up), you should walk away and fast. There has to be some correlation between house prices and rental income.

Lets say you rented each room at an average of 500eur p.m - 2k p.m or 24k p.a. Knock 10% off for expenses / 6 (the % yield) * 100 and you get 360k exactly. I'm being very generous here TBH (in terms of rent). I could be even more negative and rent it out as a whole house.

What would I offer? I'd probably start in the region of 220k and work upwards. Not sure where I would stop, of course it depended how much I wanted the house. There looks like a good bit of work to be done. I think you would have to test a lot of scanarios and be prepared for worse case scenario. In the case of a couple, if you can't afford it on either one of the salary's, I would not bid. In terms of a sole buyer, you'd have to be sure you could rent out rooms if worst came to worst. Of course, you have more comfort as a couple (assuming you have no kids) to rent out a room or two, but I doubt many couples would want to do this; especially if they have a family.

meglome · 18-11-2009 2:58am

stepbar wrote: »

Lets say you rented each room at an average of 500eur p.m - 2k p.m or 24k p.a. Knock 10% off for expenses / 6 (the % yield) * 100 and you get 360k exactly. I'm being very generous here TBH (in terms of rent). I could be even more negative and rent it out as a whole house.

And given the house I'd say it'd be nearer to 1500 per month rent not 2k.

What would you bid? 4 bed, Dundrum

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