Bank sales start on southside

Victor

http://www.irishtimes.com/newspaper/property/2010/0610/1224272187779.html?via=mr

Bank sales start on southside

ORNA MULCAHY, Property Editor

Banks are taking their time to offload apartments in schemes that have gone bust, but the sell -off begins today with two developments in south Dublin

TWO mothballed apartment developments in south county Dublin are going for sale today on the instructions of banks, with prices starting at €135,000 for one-bedroom units.

One of the schemes, Carrickmines Green, which is being sold by Anglo Irish Bank, hit the headlines last year when early buyers lost their deposits after developer Laragan went into examinership.

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I image those that lost their deposits have been saved a lot of negative equity.

Cookie_Monster

€135k for a one bed apt is still insane :eek:

danbohan

Cookie_Monster wrote: »

€135k for a one bed apt is still insane :eek:

absolutely , but remember the lunatics ie Fianna fail , bankers , developers are trying very hard to make sure we think that's good value , thats the agenda ,

Oliver1985

135k for a one bed !! Anglo prob making a few pound for themselves!!!

ricman

Theres new apartments going for 150 in dublin west , free parking.I do not know if thats 1 or 2 bed.Reduced from 240k.
Maybe sales start on the southside cos theres high demand there.

yosemite_sam

They are not worth half that, wait untill they hit their proper price which is no more than 65,000 euro:)

Anyone

I was up there yesterday. The apartments are ok, small though. But....most of them are sold already.

This is the first of many I think of these Bank sales, if yesterday is anything to go by, seems alot of this property will go.

On a side note, the amount of people I overheard asking about the rental income was scary....cant imagine people are still buying to rent them out...

ricman

An apartment 1 bed in that area is around 800 per month.They,ll probably be bought by investors.

population

I will admit that this is the most arbitrary rule of thumb measurement you will ever hear, but I always had a figure in my head, that if a one bed apartment cost more than 100,000, it was overpriced. It just always seemed to me that this figure was the absolute max somebody should pay for one room.

I bought my house, 3 bed townhouse in 2004 for 170k and at the time I thought that was about right, but in 2007 one sold for 315k!!! Just crazy stuff. Assets just cannot appreciate in value that much that quickly without there being a big big catch. With about 50% knocked off the value of the place now I am in negative equity by a few grand, but all I can say is that my heart breaks for the couple who bought one at 316k. They were had. Well and truly had.

AARRRRGH

€135k
so you borrow about 90k. No point paying cash even if you have it. take the few % you get for that leaving it in the bank and borrow to write your 75% of interest off as well as your expenses.

(Worst thing i ever did was pay all of my mortgage off in less than 10 years. Now I rent the house out and cant claim interest relief
I should have banked the money instead and earned interest as well as got tax relief on the outstanding mortgage.)

Take out costs of buying. About €700 conveyancing plus whatever stamp duty is now and about €1500 - 2000 to kit out a one bed apartment for 1st let (I know that because i bought a 2 bed house for my father last year and kitted it out really well for €2500 to start him off - covered fridge/freezer, washer/dryer, laminate floors, which i put down in a day, beds, wardrobes, table and chairs, sofas etc).

Anything after 1st let is deductible so its cheaper than you think.

5 years fixed is about €500 a month (at present) to repay over 25 years.
€315 of that is interest. So 75% (235) of that is deducible off the profits for interest.

Theres money to be made there alright if you are investing.
Not for me though. I prefer the markets.

Zamboni

AARRRRGH wrote: »

€135k
so you borrow about 90k. No point paying cash even if you have it. take the few % you get for that leaving it in the bank and borrow to write your 75% of interest off as well as your expenses.

(Worst thing i ever did was pay all of my mortgage off in less than 10 years. Now I rent the house out and cant claim interest relief
I should have banked the money instead and earned interest as well as got tax relief on the outstanding mortgage.)

Take out costs of buying. About €700 conveyancing plus whatever stamp duty is now and about €1500 - 2000 to kit out a one bed apartment for 1st let (I know that because i bought a 2 bed house for my father last year and kitted it out really well for €2500 to start him off - covered fridge/freezer, washer/dryer, laminate floors, which i put down in a day, beds, wardrobes, table and chairs, sofas etc).

Anything after 1st let is deductible so its cheaper than you think.

5 years fixed is about €500 a month (at present) to repay over 25 years.
€315 of that is interest. So 75% (235) of that is deducible off the profits for interest.

Theres money to be made there alright if you are investing.
Not for me though. I prefer the markets.

Sure maybe the numbers add up but are the tenants there?
There are currently 1,200 apartments available on daft in South Dublin alone leaving aside houses. I'd stick with the markets too

AARRRRGH

Zamboni wrote: »

Sure maybe the numbers add up but are the tenants there?
There are currently 1,200 apartments available on daft in South Dublin alone leaving aside houses. I'd stick with the markets too

How many of those 1200 are vacant for any significant period though.
Ive never heard of a landlord in Dublin who cant get a tenant.
They just reduce the price until they get one.
Of course you will have stubborn people who wont reduce the price but there is no help for them. They deserve what they get.

astrofool

Was up around Carrickmines Green today (was going to the Park) and people were parking on the road outside of the place.

gurramok

Will Irish people ever learn that you investing in property is lets say not exactly your pension?!

ricman

I think mortgage relief has been reduced to 1st seven years in the last budget.IT seems like a good area ,so 135k looks like a realistic price.
Theres landlords in certain areas who have to get rent allowance tenants or else leave it vacant.theres probably people in carrickmines that payed 230 for a 1bed apartment 2 years ago.

AARRRRGH

ricman wrote: »

I think mortgage relief has been reduced to 1st seven years in the last budget.IT seems like a good area ,so 135k looks like a realistic price.
Theres landlords in certain areas who have to get rent allowance tenants or else leave it vacant.theres probably people in carrickmines that payed 230 for a 1bed apartment 2 years ago.

For investors its actually been reduced to 75% of the interest.
Of course before you even think about investing in property or the markets, you should be maxing out your pension contributions.

leroy_brown

Have visited these on Friday last, reminded me of the queues in 2005-6.

In summary (from Carrickmines):

- Very badly constructed. Thrown up as they say.
- Some apartments will be overlooking a building site for an unknown time into the future, think ghost lift shafts etc.
- Apartments built to maximise apartment numbers, whilst skimping on apartment/room size.
- Studded walls/paper thin plasterboard
- Anywhere where i seen an en-suite, you would need a perfect 10 figure to get around and manouver around the bathroom sink.
- Paving and slabbing very badly put down, trip hazards everywhere.
- Not worth the price, even at half the price, from an owner or investor point of view, simply long term dilapidation cost will be expensive.
- There was a one bed town-house, one had to climb maybe three flights of stairs to get there, rediculous.

Sick for the people that bought there in the peak.

ricman

The funny thing is the council built apartments are larger ,better built, good sound insulation than those apartments.Built too a much higher standard in general.

gurramok

leroy_brown wrote: »

Have visited these on Friday last, reminded me of the queues in 2005-6.

In summary (from Carrickmines):

- Very badly constructed. Thrown up as they say.
- Some apartments will be overlooking a building site for an unknown time into the future, think ghost lift shafts etc.
- Apartments built to maximise apartment numbers, whilst skimping on apartment/room size.
- Studded walls/paper thin plasterboard
- Anywhere where i seen an en-suite, you would need a perfect 10 figure to get around and manouver around the bathroom sink.
- Paving and slabbing very badly put down, trip hazards everywhere.
- Not worth the price, even at half the price, from an owner or investor point of view, simply long term dilapidation cost will be expensive.
- There was a one bed town-house, one had to climb maybe three flights of stairs to get there, rediculous.

Sick for the people that bought there in the peak.

Good post. Here you have it, local knowledge is valuable when buying a gaff. Look past the spin.

delux

One of the papers was saying the buyers were first time buyers and parents buying for their children!
that got me thinking, "parents buying for their children", is this another false market? i.e. the older generation with wads of cash, propping up the market. (i don't mean on purpose, but just indirectly)
It really is artifically holding up the market in one way... but then again you could just look on it as if they're buy-to-let type investors..

astrofool

delux wrote: »

One of the papers was saying the buyers were first time buyers and parents buying for their children!
that got me thinking, "parents buying for their children", is this another false market? i.e. the older generation with wads of cash, propping up the market. (i don't mean on purpose, but just indirectly)
It really is artifically holding up the market in one way... but then again you could just look on it as if they're buy-to-let type investors..

Parents have been buying for their children forever, it will always be a small part of the housing market.

dan_d

astrofool wrote: »

Parents have been buying for their children forever, it will always be a small part of the housing market.

Problem being, it was actually the case for a lot of people buying in the last few years.
Right now - if a 2 bed one of those was for sale at about 50,000 - 80,000 (and pigs might fly!!) I might consider buying with my parents as a long term "investment"...and by that I mean if I ever have kids and they decided to go to UCD etc, it might be handy to have. Otherwise....nope.

Gurgle

delux wrote: »

One of the papers was saying the buyers were first time buyers and parents buying for their children!
that got me thinking, "parents buying for their children", is this another false market? i.e. the older generation with wads of cash, propping up the market.

I'd guess its parents 'down the country' who have a few kids at (or approaching) college. If you're looking at paying rent for 2 or more kids in dublin for the next 10 years it could make sense to buy a place.

beeno67

Gurgle wrote: »

I'd guess its parents 'down the country' who have a few kids at (or approaching) college. If you're looking at paying rent for 2 or more kids in dublin for the next 10 years it could make sense to buy a place.

It can also help the parents control what is going on with their children. They give the children the reassurance of a constant place to stay and as landlords the parents can decide who if anyone shares with the children. Not all decisions are economic.

fontanalis

leroy_brown wrote: »

Have visited these on Friday last, reminded me of the queues in 2005-6.

In summary (from Carrickmines):

- Very badly constructed. Thrown up as they say.
- Some apartments will be overlooking a building site for an unknown time into the future, think ghost lift shafts etc.
- Apartments built to maximise apartment numbers, whilst skimping on apartment/room size.
- Studded walls/paper thin plasterboard
- Anywhere where i seen an en-suite, you would need a perfect 10 figure to get around and manouver around the bathroom sink.
- Paving and slabbing very badly put down, trip hazards everywhere.
- Not worth the price, even at half the price, from an owner or investor point of view, simply long term dilapidation cost will be expensive.
- There was a one bed town-house, one had to climb maybe three flights of stairs to get there, rediculous.

Sick for the people that bought there in the peak.

So perfect to get on the ladder then :rolleyes:

Praetorian Saighdiuir

Im in the market for a house, so I popped up there yesterday out of interest with the other half...we only live 5 mins away.

It was an absolute sham!!

The whole complex is depressing and more akin to a bland council retirement area.

Anyway, the woman "showing" the 4 townhouses, refused to show them to possible buyers. She said they were reserved and that she was only showing them to the purchasers.

If I wanted to view the townhouses, I would have to put my name down on the list, wait to be called, then go to view them another day.

I was at the door to the townhouse while she was letting "purchasers" in and she still refused....this was an open viewing by the way.

Now, why would anyone put their name on a list to view a feckin house, that apparently were as good as sold!

Crazyness on her part imho.

Irrespective of my experience yesterday.....i would not like to live in the area.

another world

I went to see these today. I quite liked the 2 bed (82m). For an apartment it was a good enough size and the sound proofing seemed good enough, well I couldn´t here the cars passing outside anyway. The 2 bed Penthouse was a joke.

The location would be my main worry, with the Luas not being open yet and you would definitely be very car reliant out there. However, I like the access to the Dublin mountains etc. They´re going to be building right behind these for the next few years as well so it´s important to keep that in mind.

Basically, I´ll be waiting a bit longer, there will be better out there (I hope!) but nothing much cheaper because these were being sold pretty fast.

The_Conductor

another world wrote: »

They´re going to be building right behind these for the next few years as well so it´s important to keep that in mind.

I wouldn't worry about this. No developer is going to be given money to undertake further development in the area for some considerable time.