More to fall re property prices?

mickydi

What are the general feeling re current property prices ... have they much further to fall? Viewed a house in Clonskeagh ... was on a 915000 in 2007 & now asking 500000! Needless to say don't want to buy too soon.??

faceman

What are your personal circumstances?

mickydi

Buying to facilitate family going to college for another couple of years ... so would be renting it out. (Renting proving immpossible this year ... can't find anything suitable near college at decent rent ... so much for rent reductions we hear on TV. ) Would have to consider mid to long term prospect. Max to invest 200K (at a strong push) & mortgage for rest over 10 - 15 yrs max (due to age). As these are our funds for the future ... don't want tp take too big a risk & wonder if prices going to fall a bit more which would mean best to hold out if at all poss....

Thanks.

whizzbang

Doing anything before the whole Nama financial mess is sorted out may be foolhardy.

You may like to use Irish Property Watch to track places you like http://www.irishpropertywatch.com

meglome

mickydi wrote: »

Buying to facilitate family going to college for another couple of years ... so would be renting it out. (Renting proving immpossible this year ... can't find anything suitable near college at decent rent ... so much for rent reductions we hear on TV. ) Would have to consider mid to long term prospect. Max to invest 200K (at a strong push) & mortgage for rest over 10 - 15 yrs max (due to age). As these are our funds for the future ... don't want tp take too big a risk & wonder if prices going to fall a bit more which would mean best to hold out if at all poss....

Thanks.

Dunno where you're based but in Dublin city centre rents have come down a lot. I'm about to rent a place that was 1600 up to now and I'm getting it for 1100.

mickydi

Thanks ...it's a dicey market & leaves us nervous!
Looking for rentals within reasonable distance to UCD & they have definitely gone UP. Our 2 students last year paid 425 & 435 for Booterstown & Clonskeagh ...in nice properties & this year can't find anything even remotely the same for 500!!

Kipperhell

mickydi wrote: »

Thanks ...it's a dicey market & leaves us nervous!
Looking for rentals within reasonable distance to UCD & they have definitely gone UP. Our 2 students last year paid 425 & 435 for Booterstown & Clonskeagh ...in nice properties & this year can't find anything even remotely the same for 500!!

Proving if you bought smartly you will find it easy to rent and retain value. Unless you can get a good deal for a place with good rental coverage it is best to avoid investment. I know people who bought rental property in Ashbourne because they got more for the money but it had huge vacancy periods thus making a loss and also losing value. For a similar price another friend bought closer to Dublin City centre much smaller but never vacant.

Look for colleges,hospitals and areas of traditional renting. They all pretty much secure a rental income. While the main purpose is for college education such an investment should not be buttoned down to where your children are going to college. Around UCD is expensive so I doubt you can see a good rental yield

GeeNorm

You could invest in a bike and stretch your search area slightly to Dundrum, Churchtown, Nutgrove even.
As students living 'up' in Dublin I can appreciate that they want to stay near the hub of things but most Dublin born students stay in their parents house and commute.
Make it an electric bike/scooter if they complain!

mickydi

They've looked within any reasonable distance to walk cycle or bus ... Ranelagh, Dundrum, Milltown, Sandymount etc.....

I thought Clonskeagh is would be good option re rentals with UCD so close. Other areas such as Merrion, Sandymount, etc which are also very close to UCD & hospital are even more expensive to buy as is Ranelagh which is popular with both students & young profs ... was opting for South Side as we know it better. Have another prospective student coming along but haven't a clue where he'll end up going so not just basing it soley on that aspect although it is a factor at present I suppose.

GeeNorm

Fair enough. If you do decide to buy then I would say that getting somewhere along the DART or LUAS is key. Yes, you'll pay more but you sound like a somewhat reluctant landlord and letting this will be much easier as you'll have a larger market (both students and commuters).

As for prices, who knows. I have been looking to buy for two years now and think I will probably have somewhere before Christmas as houses that I like are now in my bracket. Doesn't mean they won't fall further but I am looking for a house not an investment.

Best of luck

ZYX

mickydi wrote: »

Thanks ...it's a dicey market & leaves us nervous!
Looking for rentals within reasonable distance to UCD & they have definitely gone UP. Our 2 students last year paid 425 & 435 for Booterstown & Clonskeagh ...in nice properties & this year can't find anything even remotely the same for 500!!

Doesn't sound like it will make financial sense for you. I assume your kids pay rent for 9 months a year. That means you are paying Less than €8,000 for rent a year. Assuming you could get a property for your €200,000 (which you cannot) then your lost interest on this money would be about €8,000 a year. This doesn't take into account the cost of ownership such as insurance, furniture, repairs and maintenance.

bangersandmash

mickydi wrote: »

Thanks ...it's a dicey market & leaves us nervous!
Looking for rentals within reasonable distance to UCD & they have definitely gone UP.

I've said it to you elsewhere and I'll have to disagree again here. What you're saying doesn't tally. I've seen rents in these areas go down 15-30% over the last 18 months.

It's possible that you're looking at the wrong time. August/Sept near a Dublin uni is going to be a bad time no matter what the economic climate, and demand for college places is up this year. Or maybe you were unusually lucky last year. Looking at Daft I still see plenty of sharing options near those areas that are below the €500 mark.

I'll have to be honest. Looking at places like Ranelagh, Sandymount or Clonskeagh for a student-rental investment seems odd at current prices. I regularly see €1m houses for sale while nearby houses are renting for €1400-2000. The rent/mortgage repayment comparisons for these areas are still completely out of line.

Fozzie Bear

whizzbang wrote: »

Doing anything before the whole Nama financial mess is sorted out may be foolhardy.

Not having a go, genuine question;

Why do you think that?? Will the Government Scama thing not help stabilise/push up prices when it eventually does gets going (God help us all). Or will it create a dead cat bounce with temporarily stabilised prices before they drop off a cliff again?

faceman

Fozzie Bear wrote: »

Not having a go, genuine question;

Why do you think that?? Will the Government Scama thing not help stabilise/push up prices when it eventually does gets going (God help us all). Or will it create a dead cat bounce with temporarily stabilised prices before they drop off a cliff again?

Everything is just theories at the mo. ONe school of thought is that the banks will put a push on repossessions once NAMA goes live thus increasing the chance of firesales, which will drive prices down further unnaturally.

However it seems the government is doing everything it can to avoid firesales. (Even up to yesterday going by an interview with FF on Newstalk)

gurramok

Which leads to a Japan style scenario. People just won't buy as there is no value in property and throw in the tax rises and high unemployment, lets just say that there is further pain ahead.

How Strange

mickydi wrote: »

They've looked within any reasonable distance to walk cycle or bus ... Ranelagh, Dundrum, Milltown, Sandymount etc.....

I thought Clonskeagh is would be good option re rentals with UCD so close. Other areas such as Merrion, Sandymount, etc which are also very close to UCD & hospital are even more expensive to buy as is Ranelagh which is popular with both students & young profs ... was opting for South Side as we know it better. Have another prospective student coming along but haven't a clue where he'll end up going so not just basing it soley on that aspect although it is a factor at present I suppose.

IMO, on the funds you have available to invest these locations aren't realistic even at the bottom of the market (which we most prob haven't reached yet.)
These are the 'des res' areas of South Dublin so there will always be a higher demand for property.

There are very good bus links to UCD so check them out and then look at widening your catchment area.

It's possible to get an apartment at the other side of the city (think Kilmainham, Inchicore, Islandbridge as that area will be nearing saturation point with new apts in the next year) and I know there is a 25x bus that goes to UCD via Heuston. I've seen it in the morning and it seems very regular.

stepbar

How Strange wrote: »

It's possible to get an apartment at the other side of the city (think Kilmainham, Inchicore, Islandbridge as that area will be nearing saturation point with new apts in the next year) and I know there is a 25x bus that goes to UCD via Heuston. I've seen it in the morning and it seems very regular.

Interesting you say that as I've been watching property in this area like a hawk. A number of 2 bed apts in Inchicore interest me, however the price not so much.

I'm seeing a lot for around the 200k mark. Considering that most are now not rentable at the 1k mark, I'm guessing that the price should be more like 160 - 180k. Anyone have any insights into Inchicore?

How Strange

stepbar wrote: »

Interesting you say that as I've been watching property in this area like a hawk. A number of 2 bed apts in Inchicore interest me, however the price not so much.

I'm seeing a lot for around the 200k mark. Considering that most are now not rentable at the 1k mark, I'm guessing that the price should be more like 160 - 180k. Anyone have any insights into Inchicore?

It will be even more interesting when scama (sorry I saw it called that on this thread and thought how apt!) is up and running.