House prices yet to fall in Galway county + city.

musharra

People have to accept that until there is an equilibrium between supply
and demand that prices will continue to fall until an equilibrium level
is reached.

Rising unemployment, Greece uncertainty and the fact we have never historically had interest rates like our current rates- and a lot of people believe rates below 2% are will continue. ...ya right.

Its actually costing the banks 5.8% (BOI) and 6.1% (AIB) to raise private
funds at the moment (most recent bond rates). They are not in the business of shovelling money out the door for less than it costs them to borrow it.

The only thing propping up property prices at present- is low interest rates.
As soon as they start to really rise- the writing will be on the walls.

doubleglaze

Wonder how the O Malley "giveaway sale" went yesterday? Starting prices = about €150,000 for a 2-bedroomed, apparantly.

Still too much, especially given their outer-suburban location.

Was anyone here at the event? Any updates/observations....?

Bobeagleburger

billybigunz wrote: »

If you are big enough to have somebody lend you 100ks of money then you are big enough to deal with the consequences even if that means destitution or suicide.

No bailouts, no mercy.

ffs

dafunk

Xiney wrote: »

PS: I will never buy a cinder brick house. Timber Frame all the way.

I never even HEARD of having damp in a house in Canada, and we're much colder.

The dampness of houses probably has more to do with the rainfall and the moisture in the air (I'm sure shoddy building practices don't help!) than the temperature. For the same reason we have high rates of asthma and arthritis.

Xiney

dafunk wrote: »

The dampness of houses probably has more to do with the rainfall and the moisture in the air (I'm sure soddy building practices don't help!) than the temperature. For the same reason we have high rates of asthma and arthritis.

moisture in the air = humidity

it's often 100% humidity (meaning the air is saturated with as much water as can be suspended in air of that temperature*) in summer in Southern Ontario and Montreal - combined with closed windows and air conditioning (which is generally standard especially in the former if not the latter) would be absolute prime conditions for "damp". But I have NEVER seen it happen.

dafunk

Xiney wrote: »

moisture in the air = humidity

it's often 100% humidity (meaning the air is saturated with as much water as can be suspended in air of that temperature*) in summer in Southern Ontario and Montreal - combined with closed windows and air conditioning (which is generally standard especially in the former if not the latter) would be absolute prime conditions for "damp". But I have NEVER seen it happen.

Because, my friend, you come from a civilised society where building regulations are adherred to!

Xiney

we also don't paint our walls with emulsion paint and then have landlords trying to bone tenants out of some of their deposit for "painting" - latex paint lasts much longer and can *gasp* be cleaned!

dafunk

Yes it would seem that the house prices advertised are unrealistic. I don't think that people selling their houses actually expect to get the price they are asking for but they know that people will offer 20 - 30% less. I wouldn't think that people are expecting to pass these large debts on to another seller because those buying houses have the benefit of knowing the prices were overinflated which wasn't altogether clear in the boom. I feel sorry for people getting tied up in huge debt over their homes. It's completely unjust and this 'us' against 'them' argument is ridiculous. We should all be on the one side and if anger is to be directed anywhere it should be at our government and our banks who schemed together to the detriment of EVERYONE in this country.

http://www.myhome.ie/residential/brochure/30-fionnuisce-doughiska-galway/217008
2 bed apartment in Doughiska for €125,000

billybigunz

That is about twice what it should be.

skelliser

notice in the photos how they tried to hide the biulding sites next to it!!

mikom

Fuckin' depressing looking kip.

Xiney

never ceases to amaze me how poor the photos generally are on daft/myhome.

There's a lot to be said for spending a half hour reading up on photo composition before you try to offload hundreds of thousands of euros worth of something.

Madame Razz

Annie Leibovitz could photograph that apartment and frankly I still wouldn't consider buying it:p

I get what you're saying tho. My friend put a house of his with a letting agency earlier this year and the guy arrive with a sh!itty little camera to take photos; and not even that but the photos he took were stupid; they did the house no justice at all. He had a mate take decent photos with a decent DSLR and it made a world of difference!

Xiney

well, for example, this was our last apartment -

photo the letting agent put up on daft (used the same ones when we moved out):



photo I randomly took because of how cute the cat was being (he moved before I had time to adjust the exposure):




First one's not bad, and second one is too dark, but it sure illustrates the different feel you can give a place just by taking a photo.

Some of the ads I've seen on the Galway section of daft are... well.... daft. Don't concentrate so much on the exterior, for the love of god don't ONLY post the exterior, try to describe it as well as possible (ie, if it has laminate throughout, say so! some people hate carpet and some people love it) and don't say stupid things like "furnished to a high standard" - take a picture of your nice furniture.

Madame Razz

Yea, the description that the agency put of my mates house that time was pretty dire aswell. But he left it be once the proper photos were in place; a picture paints a thousand words and all that.

Tbh I'd be highly suspcious of a place on Daft that had either no pictures or else just pictures of the exterior. It kind of suggests that the place is a bit of a kip. I'm no big fan of 'morkeshing' but a little bit of it can definately help sometimes:)

I think there are interesting times ahead in Galway as regards property. Especially when the repossession ban is lifted. The prices have to wake up and smell the coffee then.

musharra

In todays paper...http://www.independent.ie/business/irish/house-prices-still-far-from-bottom-warns-economist-2173968.html



....ties in with this thread title...

Staceyann

Intresting post Musharra, My ole one is currently looking to buy a house in Gal. Its so difficult to know how much further they will drop!!!! But its fairly certain they are still droppin......

funnyname

look at this one in Kinvara

http://www.daft.ie/searchsale.daft?id=357671&search=1

Is it worth half the asking price?

LawnMower Man

Cheack out this on Tripadvisor

Galway ranks a better place to visit than Paris, Im sure property prices in Galway are alot cheaper than Paris.... So yes Galway is different....

McTigs

LawnMower Man wrote: »

sure property prices in Galway are alot cheaper than Paris

how sure?

Vegas is great for a visit too but i'd have squat interest in buying a gaff and living there

Greaney

I hope this helps the thread

My husband and I just bought a house in Athenry

A former county council, 1940's four bed semi (modern extentions and all that). It needed work, it's not in a housing estate.

We couldn't get a mortgage although we have a good combined income (freelance) but we were both savers, got family and friend loans, and another loan in the States (long story). Anyway, here are the figures...

Boom price €240k
Asking price of vendor who (thankfully) was not greedy €135

Selling price €121k

The vendor was offered two prices below ours €105k and €115

It needed €40k worth of work (quotes are coming in a little lower that we previously budgeted due to labour costs going down maybe??)

I've head stories about offers being taken by buyers way below asking price but all I can write are my experience and these are the facts..... so there you go;)

Xiney

congrats on the purchase

Greaney

Thank you. The local authority house we are renting became too expensive to rent, rent was maxed out to just over €800 per calender month. The loan repayments were better value.

Furthermore, the local authority have an asking price of €220 on the three bed mid terrace (view of halting site) that I currently live in:eek:

Xiney

Greaney wrote: »

Furthermore, the local authority have an asking price of €220 on the three bed mid terrace (view of halting site) that I currently live in:eek:

Just goes to show - there is no limit to idiocy

Fozzie Bear

LawnMower Man wrote: »

Cheack out this on Tripadvisor

Galway ranks a better place to visit than Paris, Im sure property prices in Galway are alot cheaper than Paris.... So yes Galway is different....

Sweet baby Jesus. Are you seriously trying to tell us that Galway house prices should cost more then the rest of the country based on this and the spin Estate agents are putting out? Seriously????

You are serious I presume?

This is not a gag?

qwytre

Galway city prices are proving slow to come down in comparison to Dublin\Cork. It could be the auctioneers just quoting higher prices in the hope of getting a bid something close to it. There are not too many major auctioneers in the city so they have more power over the prices quoted.

I have no doubt prices will continue to drop in the city and in the county in particular over the next few years. There are some very simple factors at play here...

1) People have less disposable income so they cannot borrow as much
2) Banks are not lending as much and in a lot of cases at all
3) Unemployement is high, economy is in poor shape and confience is very low
4) Over supply of property in the county

There is no reason for prices to head in any direction except down from their currently over-valued prices. There are a few ways of valuing property to give you a general ballpark figure e.g. 150-200 times monthy rent.

Thinking of buying? Don't unless you find a property you love and wish to live in for the foreseeable future.

Mrs OBumble

Greaney wrote: »

Furthermore, the local authority have an asking price of €220 on the three bed mid terrace (view of halting site) that I currently live in:eek:

Sure it's the free entertainment is keeping the value up!

Seriously ... they can ask all they want, what matters is what anyone is willing to pay. And who knows, the neighbourhood isn't as bad as some, and the location is excellent if you're working in certain parts of town.

Greaney

Well observed Mary;). With regard to my local authority house. Yes, the location was good, the neighbourhood is very solid with a terrific residents association.

I guess my point is that the location of my particular house with the 'view', which is not shared by many of my neighbours means that re-sale is very unlikely untill huge trees grow to obstruct it.(Not withstanding the property slump). Also, the local authority are difficult and slow to negotiate with so getting the price down and reducing the rent are nigh on impossible.

I think if the local authority want their estates to 'mature' they should make the first 50% of houses they sell really affordable. Some private estates in our area with almost 100% rental population are dog rough:(

Webbs

Fozzie Bear wrote: »

Sweet baby Jesus. Are you seriously trying to tell us that Galway house prices should cost more then the rest of the country based on this and the spin Estate agents are putting out? Seriously????

You are serious I presume?

This is not a gag?

So I am assuming from your first line that you expect location of a house be it Donegal or Dublin to have nothing to do with house prices?