Waterford Developer Buys Land at Fraction of 2006 Cost

danjo-xx

A Waterford developer has paid just over 76 thousand euro an acre for land adjacent to property purchased for two million euro an acre just four years ago.

Frisby Construction has bought 36 acres of development land zoned residential for 2.75 million euro in Williamstown in the City.
This is the land adjacent to the 22 acres purchased by Edward Holdings from the City Council for 45 million euro.


Proprieter Noel Frisby says the price he paid for this land is an indicator of the write down that NAMA will be putting on the land banks around the country.



How times have changed ~~~ back to 'reality' land. (no pun intended):)

dayshah

danjo-xx wrote: »

A Waterford developer has paid just over 76 thousand euro an acre for land adjacent to property purchased for two million euro an acre just four years ago.

Frisby Construction has bought 36 acres of development land zoned residential for 2.75 million euro in Williamstown in the City.
This is the land adjacent to the 22 acres purchased by Edward Holdings from the City Council for 45 million euro.


Proprieter Noel Frisby says the price he paid for this land is an indicator of the write down that NAMA will be putting on the land banks around the country.



How times have changed ~~~ back to 'reality' land. (no pun intended):)

A fall of 96.8%

Wowsers. Its good for me. I'm getting to that stage when I will want to buy my first house. Nice to know I'll be able to afford one.

What sort of buildings to Frisby do?

jayboi

So the council made 45 million on the sale? Jesus I don’t remember hearing about that, maybe at the time it was happening so often no one blinked an eyelid.

Where about is the lad exactly? Obviously planning future housing developments there in the future, i wonder is there any need maybe it might need to be rezoned back.
Frisby must have serious money at this stage he has always struck me as being very shrewd with his investments, always got in and out.

jayboi

dayshah wrote: »

What sort of buildings to Frisby do?

Houses mainly they have a web page noel frisby construction, might be worth a look if you thinking of buying.

dayshah

jayboi wrote: »

Houses mainly they have a web page noel frisby construction, might be worth a look if you thinking of buying.

I took a look and saw he did Greenfields. I don't like their build quality, and the 10 year guarantee doesn't inspire me. That's just 3 more than a Kia!

Are all his houses of a similar quality? I'm the third little piggy who wants his house built of stone, and I'd be more inclined to buy a 2nd hand house.

mike65

Frisby homes are little more than servicable boxes.

anplaya

to be honest,theres much higher standard of housing for basically the same price.

giles lynchwood

I wonder will this saving be passed on to the consumer.

dayshah

giles lynchwood wrote: »

I wonder will this saving be passed on to the consumer.

In fairness, house prices have come down hugely (though it can be a laugh to see what some people are still asking for).

Odats

Very smart business and shows how much inflated the property prices were. 46 million vs 2.5 million. Even if he sits on the land for the next few years until things pick up he'll still turn a profit on it.

Yes Boss

The same strategy he used when he purchased the lands that Tesco Ardkeen is on for a million. In addition, he bought the lands where the Uluru is situated. Frisby is a shrewd investor!

BlaasForRafa

mike65 wrote: »

Frisby homes are little more than servicable boxes.

they built templars hall, that should tell anyone about the bland generic designs that they build.

robtri

anyone know how the lands are currently classified from a planing perspective??

Silverado

Who the hell would want to pay a mortgage of €1000+ a month when you can rent a lovely furnished house on the Dunmore Road for €650?

ziedth

Crazy people!

I never understood irelands obsession with getting on the property ladder.

What really grinds my gears is people saying that renting is dead money, no it's bloody not you get to live in a house for it.

I almost bought a bit if a fixer upper 3 years ago with mrs ziedth for 150k which was a good deal at the time for one reason or another it just fell through at the last minute it went to auction few weeks ago for like 60k.

Serious bargins out there if ya have the money!

Bards

Silverado wrote: »

Who the hell would want to pay a mortgage of €1000+ a month when you can rent a lovely furnished house on the Dunmore Road for €650?

ziedth wrote: »

Crazy people!

I never understood irelands obsession with getting on the property ladder.

What really grinds my gears is people saying that renting is dead money, no it's bloody not you get to live in a house for it.

I almost bought a bit if a fixer upper 3 years ago with mrs ziedth for 150k which was a good deal at the time for one reason or another it just fell through at the last minute it went to auction few weeks ago for like 60k.

Serious bargins out there if ya have the money!

€650 Per month = €7,800 Yearly

assuming no rent increase (highly doubtful) after 25 years (Typical Mortgage) you will have paid €195,000 and still have no asset (house)

dayshah

ziedth wrote: »

What really grinds my gears is people saying that renting is dead money, no it's bloody not you get to live in a house for it.

You could also say that interest on a mortgage is dead money.

ziedth

Ah of course,

The point is true in that you will own a house after 25 years (I'm looking into buying a house so I'm not having a go)

What I'm saying I have a problem is there used to be a borderline obsession around with owning your own home. Eddie Hobbs even had his own self serving **** material of getting people on the property ladder who shock horror still lived at home in their 20's.

I moved out of home when I was 17 and have happily rented since, mrs ziedth was even infected by this madness and I thank my lucky stars everyday that the deal I mentioned fell through.

jonnyfingers

Bards wrote: »

€650 Per month = €7,800 Yearly

assuming no rent increase (highly doubtful) after 25 years (Typical Mortgage) you will have paid €195,000 and still have no asset (house)

Technically you never have your asset (house) until the last repayment of the mortgage has gone through. Alright, you can sell at any stage but look at today's market, you'd likely be selling at a loss. And there's no guarantee you'd even sell your house.

But while renting for those 25 years you have freedom. You can move at short notice whenever you like, whether it's for a job, or just to move to a bigger house. Any repairs to the house are covered by the landlord.

So for me if you're not sure what you're going to be doing for the next 25, or at least a large chunk of it, I'd rather continue renting until I was sure.

Silverado

Remember also that you need 15% deposit in order to get a mortgage. Then after you have bought the house you have to decorate and furnish it. No, renting still makes more sense.

Junior

Silverado wrote: »

Who the hell would want to pay a mortgage of €1000+ a month when you can rent a lovely furnished house on the Dunmore Road for €650?

Me, I've got an acre of land, a 3000 Square Foot house built to a design I wanted and I've got room for my garage. The dog has plenty of room, we'll be putting in hens shortly enough along with raised beds and a vegetable tunnel.

But hey by all means try tell me what's good about living on the dunmore road again ?

CantGetNoSleep

Junior wrote: »

Me, I've got an acre of land, a 3000 Square Foot house built to a design I wanted and I've got room for my garage. The dog has plenty of room, we'll be putting in hens shortly enough along with raised beds and a vegetable tunnel.

But hey by all means try tell me what's good about living on the dunmore road again ?

You get to tell people you live on the Dunmore road

deisemum

I live on the Dunmore Road, have hens and raised beds, did a course on how to build my own polytunnel recently and I love where I live. :D

A few years ago we got as far as speaking with the building society manager about getting a 2nd mortgage to buy a site and self-build out in Gaultier but fortunately didn't go for it in the end as hubby is a carpenter and we're both self-employed.

We made our last mortgage payment last September and now own our house. We have an asset.

Atlantic Dawn

If NAMA works the way it's supposed to the banking cartels within this country will make sure that Frisby Construction gets zero financing as if they succeed in building homes for a fraction of the cost of current homes on sale it will undermine house prices in the area. NAMA's aim is to preserve pricing through the control of land and property. I wish Frisby Construction all the best and hope they succeed.

THall04

Atlantic Dawn wrote: »

If NAMA works the way it's supposed to the banking cartels within this country will make sure that Frisby Construction gets zero financing as if they succeed in building homes for a fraction of the cost of current homes on sale it will undermine house prices in the area. NAMA's aim is to preserve pricing through the control of land and property. I wish Frisby Construction all the best and hope they succeed.

Noel Frisby dosen't need financing , he bought that land last week with his own money, according to his last filed accounts for 2008, Noel Frisby Construction had assets of €37m.

Back in the 90's I did electrical work on a lot of new housing estates in Waterford , and was advised several times , from dissapointed home owners, not to have any dealings with Mr Frisby's company.....like an idiot I ignored that advice and bought a Frisby house.

The finished quality of the house(when they actually get around to finishing it) is not bad ,but If you decide to buy a new home off them , do not hand over any more money until you have the house you were promised, because once you agree to buy you will be harrassed like hell for payment on an unfinished building site

merlante

jonnyfingers wrote: »

Technically you never have your asset (house) until the last repayment of the mortgage has gone through. Alright, you can sell at any stage but look at today's market, you'd likely be selling at a loss. And there's no guarantee you'd even sell your house.

Umm.. you get a house in exchange for a mortgage, in other words an asset in exchange for a liability. You 100% own the house from day one, but promise to pay the bank a ton of cash in return. You can legally burn your house to the ground as long as you pay your mortgage. Unless I have something very wrong...

Yes Boss

merlante wrote: »

Umm.. you get a house in exchange for a mortgage, in other words an asset in exchange for a liability. You 100% own the house from day one, but promise to pay the bank a ton of cash in return. You can legally burn your house to the ground as long as you pay your mortgage. Unless I have something very wrong...

The demolition of a dwelling house requires planning permission

dayshah

merlante wrote: »

Umm.. you get a house in exchange for a mortgage, in other words an asset in exchange for a liability. You 100% own the house from day one, but promise to pay the bank a ton of cash in return. You can legally burn your house to the ground as long as you pay your mortgage. Unless I have something very wrong...

Its true that you own the house from day 1, but as the house is security you have to keep it in a certain condition, so no burning it down

Whatever about the advantages/disadvantages of buying (and buying at a time when prices still probably have a bit to go), one thing I really don't understand is buying a 'first home' with the expectation of upgrading.

You have all these costs such as stamp duty and fees, so why not just rent for 3 years and then move into a permanent home rather than buy and live somewhere for 3/5 years and then upgrade?

jonnyfingers

dayshah wrote: »

Whatever about the advantages/disadvantages of buying (and buying at a time when prices still probably have a bit to go), one thing I really don't understand is buying a 'first home' with the expectation of upgrading.

You have all these costs such as stamp duty and fees, so why not just rent for 3 years and then move into a permanent home rather than buy and live somewhere for 3/5 years and then upgrade?

That is basically my point. I'm all for buying a house, but only when you have decided that it is a place you're happy to live in, and for a minimum length of time, e.g. at least a large chuck of the length of your mortgage.

I think during the boom plenty of people, including young people, rushed to get on the property market, often choosing anything they could get. There seemed to be a belief that because you now own your house and are not giving money to a landlord that you're being very shrewd. There was no risk as if you wanted to move you could just sell your house (at a profit!) and buy somewhere else. Don't have the money for a deposit on the mortgage? Sure have take out a 100% mortgage!

I think far too many people are regretting this now. Especially young people. I know of young couples who bought a house as soon as they got a few paychecks from their first "real" job. That job isn't there anymore and they're struggling to pay the mortgage repayments. Some of the couples aren't together anymore and are dealing with a messy situation where one is trying to buy the other out of their share of the mortgage, but can't get the finance to do so. I know of one couple who are broken up a year now but still living in the same house.

So great, all these people "own" their own house. Most probably wish they didn't right now however.

Personally I'm 28 and have lived in Limerick (for university), Waterford and Cork so far. My girlfriend has been in Cork, Dublin and Waterford. I have a full time, well payed job. I could probably get a mortgage and but a house at a reasonable price right now. But I don't consider my job safe as I don't think any job is safe in the current climate. My girlfriend gave up a job to do her masters. She'll be finished that at the end of the summer and will need to find another job. So for us renting is the perfect option as we can't guarantee where we'll be six months from now. It could well be in Waterford by I'm not willing to gamble on it. I don't consider the montly rent payments as dead money as instead of paying back a mortgage repayment every month, I'm paying for the freedom that will allow me to move wherever I need to, should I need to.

In fact I think there should be some sort of law that prevents a very young person from committing to a long term mortgage before renting for a while. I think renting for a few years, especially if part of a young couple, can give you some insight into how things really are living in a house together. Some perspective might help you, and avoid some future problems, when you then decide to buy a few years later

Odats

THall04 wrote: »

Noel Frisby dosen't need financing , he bought that land last week with his own money, according to his last filed accounts for 2008, Noel Frisby Construction had assets of €37m.

You know your way around the CRO so.

Think this thread is going abit off topic as it was created to talk about a developer buying a site at a heavily reduced price and has turned into from the last few posts into a rent vs buy house thread.

Could the moderators clarify this. Fair play to the chap for buying up land at current market value and being able to sit on it until the market picks up again ( if it ever will). Cannot blame the man for being a shrewd operator and not going OTT with helicopters, planes, maseratis etc like some other builders in the town who are no more.

Bards

jonnyfingers wrote: »

In fact I think there should be some sort of law that prevents a very young person from committing to a long term mortgage before renting for a while. I think renting for a few years, especially if part of a young couple, can give you some insight into how things really are living in a house together. Some perspective might help you, and avoid some future problems, when you then decide to buy a few years later

mmm

Don't agree with this one bit. I bought my house put down a deposit on my house 15 years ago at the age of 23 (mid 90's - bought off the plans) and moved in two years later. I got a 25 Year mortgage at approx 6.5% (Interest rates were higher back then)

All my work collegues thought I was stone mad. insisted I should rent to "Have" the freedom to move around and I was too young to be sadled with a mortgage.

10 Years later (just before the property bubble collapsed) I had cleared the mortgage (Thanks in part to the SSIA) and the house was mine (other collegues now thought I was mad clearing the mortgage and not investing the money in Bank Shares!!!

I live rent free now and I'm not even 40.

All my collegues now have huge mortgages with Kids to support and have lost a lot of money in shares.



Moral of the story - be your own person. do what you think is right and don't listen to others around you. The World is full of Lobsters;)