Mullingar Apartments All Sold!

Idbatterim

Take a read of the below link.

http://www.independent.ie/business/personal-finance/property-mortgages/price-is-right-as-1000-join-the-queue-to-buy-46-apartments-2115526.html

It tells me that us Irish do still want to buy, we just want to buy at the right price! Can we expect many more firesales over the next few months / years? There are a huge amount of apts around where I live in dundrum / Sandyford, that are unfinnished, The rents in these areas are very high, I wish they would complete these units and then sell them or rent them out. It would flood the market and bring down prices drastically, if only they would lower the rent supplement! A decent 1 bed apt in the dundrum / sandyford area is 1,000 per month, these guys in mullingar are buying their own 2 bed apts for 265 per month! Ofcourse comparing the areas is like comparing apples and oranges, but the difference is staggering!

Zamboni

To be honest whilst they got a savage deal in comparison with boom prices, I still think this is just the tip of the iceberg to whats in store and ultimately this could be a poor purchase.

waffleman

Idbatterim wrote: »

It tells me that us Irish do still want to buy,

"There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again"

How Strange

there were two-bed apartments on sale at €82,450 and three-bed units at €98,000.

Is this a bargain? Those apartments are probably still over priced. I think €70k for a 1 bed in Mullingar is still overpriced.

I haven't seen people so interested and as keen to get on the property ladder, not in my 20 years of auctioneering...an estimated 60pc of the buyers in Mullingar over the weekend were looking to get on the property ladder for the first time.

Oh lordy lordy lord. We (Irish people) still haven't learned our lesson. There is no feckin property ladder; not right now anyway. The only place you'll go if you get on the mythical property ladder now is onto your ar5e on the ground.

J-blk

How Strange wrote: »

There is no feckin property ladder; not right now anyway. The only place you'll go if you get on the mythical property ladder now is onto your ar5e on the ground.

+1 - I just couldn't take the article seriously at all when the author started spouting crap about the "property ladder"... If any of the buyers of these apartments are hoping to trade up in the near future, they are beyond delusional...

NewDirection

J-blk wrote: »

If any of the buyers of these apartments are hoping to trade up in the near future, they are beyond delusional...

Why is that?
What's to stop them trading up in the near future?

Amhran Nua

78k for a one bed apartment in Westmeath? I'd have a hard time justifying that in the centre of Dublin city, never mind in the midlands. Do the new owners realise they'll probably be worth half that in five years?

J-blk

NewDirection wrote: »

Why is that?
What's to stop them trading up in the near future?

Do you really think the value of these apartments is going to go up, at least in the near future? They are simply losing money on them, unless if they have bought them for the long haul and as a primary residence. I don't see any rental value in these and their prices will most likely drop further.

NewDirection

J-blk wrote: »

Do you really think the value of these apartments is going to go up, at least in the near future? They are simply losing money on them, unless if they have bought them for the long haul and as a primary residence. I don't see any rental value in these and their prices will most likely drop further.

You were talking about the property ladder, I presumed that mean primary residence, rather than investing. the days of investing in the property market are over, so you can take it I mean primary residence in all my posts.


I still don't see any reason for your presumptions. 3 bedroom apartments sold for €98,000.

Most 3 bedroom places in Mullingar are about €500 - €600 monthly rent, which should cover not only the interest portion of the mortgage, but the entire repayment for a term around 25 years.

Zamboni

NewDirection wrote: »

Most 3 bedroom places in Mullingar are about €500 - €600 monthly rent, which should cover not only the interest portion of the mortgage, but the entire repayment for a term around 25 years.

I'd hazard a guess that some of the people who were doing this bought the apartments.
Which would mean even less tenants in the area driving the rental price down again.

robd

None of these apartments are sold. They are sale agreed. A big difference. Whether the buyers can secure finance is still to be seen. AFAIK banks aren't really lending on apartments at the moment, particularly not on one beds and particularly not on rural apartments.

So unless they're was a sill cash buyer who bought into this hype then that's al it is hype !!!

Zamboni

robd wrote: »

None of these apartments are sold. They are sale agreed. A big difference. Whether the buyers can secure finance is still to be seen. AFAIK banks aren't really lending on apartments at the moment, particularly not on one beds and particularly not on rural apartments.

So unless they're was a sill cash buyer who bought into this hype then that's al it is hype !!!

+ don't BOI have something a €150k minimum mortgage?

J-blk

NewDirection wrote: »

for a term around 25 years.

I already said in my previous post that if they are in it for the long haul, then it might make sense for some people (like the examples you mentioned, of people already renting in the area perhaps). However, my problem is with the "property ladder" faulty logic - they will most likely not be able to sell these apartments at the same price (and definitely no chance of any profit) in the next few years and trade up, they'll simply be stuck with them (which again, might actually work for some people based on their circumstances).

Additionally, when comparing mortgage prices to rent prices, you can't just say the mortgage is ~ €300 compared to ~ €500-600 rent. With rent, that's all you pay in most cases (+ bills). With home ownership, come a ton of additional costs (which seem to be rising too).

seamus

Regardless of what people think about the price, the location or the type of property, the OP's sentiment is correct in that this shows that there's still an appetite out there to buy property and the FTBs haven't fled the market country as so many people like to think.

We Irish have a traditional land-owning mentality, and the dreadful state of rental properties and rental laws in this country does nothing to encourage us to change that. We want a property because it's safe and it's ours. You can't get that security with a rental property in Ireland.

In terms of the price - well, no matter what you think, it represents a small risk or a good gamble, whatever your outlook. €82k for a 2 bed apartment - I know people living in 2-bed apartments, whose negative equity is twice that amount. It's also a smaller drop to the bottom - 20% of €82k is less than two years' mortgage payments.

Your only risk with these is that there's so much overhang in the local area that they effectively become worthless. But is there?

NewDirection

J-blk wrote: »

I already said in my previous post that if they are in it for the long haul, then it might make sense for some people (like the examples you mentioned, of people already renting in the area perhaps). However, my problem is with the "property ladder" faulty logic - they will most likely not be able to sell these apartments at the same price (and definitely no chance of any profit) in the next few years and trade up, they'll simply be stuck with them (which again, might actually work for some people based on their circumstances).

Additionally, when comparing mortgage prices to rent prices, you can't just say the mortgage is ~ €300 compared to ~ €500-600 rent. With rent, that's all you pay in most cases (+ bills). With home ownership, come a ton of additional costs (which seem to be rising too).

It depends what you define as the property ladder. I'd consider myself on the property ladder, I've a property in the exact location I want for this time in my life. Close to work, and in an urban area. I see myself moving in ten years, to somewhere more rural, and hopefully mortgage free.

who_ru

seamus wrote: »

We Irish have a traditional land-owning mentality, and the dreadful state of rental properties and rental laws in this country does nothing to encourage us to change that. We want a property because it's safe and it's ours. You can't get that security with a rental property in Ireland.

Nail on the head.

everything here is scewed in favour of home ownership. with a mortgage you get interest relief worth a considerable sum, possibley thousands p.a. - if you rent you are allowed 400p.a. and that's it. another thing to factor in for these folks who bought, or at least would like to subject to finance, is management fees. a lot of people are not even aware these exist or that a board of management made up of tenants will have to be set up.

mathie

NewDirection wrote: »

It depends what you define as the property ladder. I'd consider myself on the property ladder, I've a property in the exact location I want for this time in my life. Close to work, and in an urban area. I see myself moving in ten years, to somewhere more rural, and hopefully mortgage free.

I'd define the 'Property Ladder' as a Pyramid / Ponzi Scheme.

Oliver1985

Happy days if you Live in Mullingar!! But no use for anyone else!
People are holding and holding out for the price to be right for them!!
Its only a thing to come apartments blocks being sold like this!!

am i bovvered

mathie wrote: »

I'd define the 'Property Ladder' as a Pyramid / Ponzi Scheme.

I think most people generally think of "property ladder" as buying a starter home and over your working life moving towards a larger home (one you could not afford at the start.

fontanalis

am i bovvered wrote: »

I think most people generally think of "property ladder" as buying a starter home and over your working life moving towards a larger home (one you could not afford at the start.

In a normal housing market where people are financially literate.
What are the mangment fees on these apartments?

AARRRGH

I would hazard a guess that quite a large percentage of those who bought one of those apartments thinks our bubble was a genuine boom and are ecstatic thinking they'll be able to flip them in 2 or 3 years for double or triple what they paid.

Poor bastards.

billybigunz

fontanalis wrote: »

In a normal housing market where people are financially literate.
What are the mangment fees on these apartments?

1K a month for the one beds. Could be 2K next year for all these buyers konw.

accensi0n

am i bovvered wrote: »

I think most people generally think of "property ladder" as buying a starter home and over your working life moving towards a larger home (one you could not afford at the start.

It's just a buzz word.

I'm on the car ladder, laptop ladder and clothes ladder at the moment.

Idbatterim

The apartments are so cheap, and the sums involved so negligible, that even if a negative equity situation does arise, it is not like you are talking about a 300-400k purchase! Take a look at some of the 2 bed apts in Dublin they are still looking for 350-400k for below avergae crap! A literal prison of your own making for anyone insane enough to buy! I honestly reckon that it would be hard to justify asking any more for 150k for a 1 bed apt and 200 for a 2 bed apt and that would be for decent south Dublin locations.

billybigunz

The apartments are so cheap, and the sums involved so negligible, that even if a negative equity situation does aris

By the same logic people should blow 30K on a car that is only worth 10K as it's much smaller than a 400K mortgage debt.

Idbatterim

My point is, they may not be a wise investment! but compared to what alot of fools paid, I wouldnt be too harsh on the buyers! There were idiots in Dublin at the height of the boom paying 5-6 times this amount for a box! My main worry is that it is in absolutely everyones interest except those that dont own property that the prices rise, and I really hope this isnt the case! Alot of you on this forum are adamant they will continue to drop and drop I prey you are right!

AARRRGH

Idbatterim wrote: »

it is in absolutely everyones interest except those that dont own property that the prices rise

It is in their interest short term, but in the long term, falling prices (i.e. a correction) is good for Ireland.

For starters, cheaper property means lower wages which means competitive economy.

testicle

Most lenders won't give a mortgage on sums less than €100k, so I hope these prospective purchasers have a lot of cash.

Tony_Yeboah

I went to take a look at the apartments on Sunday (there was only one left for sale by then) and to be honest, a lot of the apartments I wouldn't take if they were half the price. The tiles in the bathrooms look like they were thrown up and some of the bedrooms would just about hold a single bed.

However, I would have been interested in one of the two bedrooms had I had adequate notice and had a bit more time to think about it (had only heard about it they day before). Myself and my gf curently live in Mullingar and pay €500 a month rent. We were thinking we could live in it for a 3 or 4 years, save up for a bigger place, then either sell it if we could get a decent price or rent it out.

There seemed to be a lot of people viewing their apartments, who by the look of their jaguars and massive 4WD jeeps were looking to pick up yet another investment property. Aren't these the kind of people that helped cause the massive rises in the house prices in the first place? By outbidding first time buyers time and time again. Pissed me right off.

Amhran Nua

Idbatterim wrote: »

it is in absolutely everyones interest except those that dont own property that the prices rise

This is categorically not the case. The cheaper property is, the better overall for the economy.

Adam Smith wrote:

The stock that is laid out in a house, if it is to be the dwelling-house of the proprietor, ceases from that moment to serve in the function of a capital, or to afford any revenue to its owner. A dwelling-house, as such, contributes nothing to the revenue of its inhabitant ; and though it is, no doubt, extremely useful to him, it is as his clothes and household furniture are useful to him, which, however, make a part of his expense, and not of his revenue.

If it is to be let to a tenant for rent, as the house itself can produce nothing, the tenant must always pay the rent out of some other revenue, which he derives, either from labour, or stock, or land. Though a house, therefore, may yield a revenue to its proprietor, and thereby serve in the function of a capital to him, it cannot yield any to the public, nor serve in the function of a capital to it, and the revenue of the whole body of the people can never be in the smallest degree increased by it.

fontanalis

Idbatterim wrote: »

My point is, they may not be a wise investment! but compared to what alot of fools paid, I wouldnt be too harsh on the buyers! There were idiots in Dublin at the height of the boom paying 5-6 times this amount for a box! My main worry is that it is in absolutely everyones interest except those that dont own property that the prices rise, and I really hope this isnt the case! Alot of you on this forum are adamant they will continue to drop and drop I prey you are right!

you're right, it's in the interest of people who should have been concerned about buying homes but instead tried to speculate that prices rise.
Property markets should follow the economy, not the other way around.