Are the Irish living in dream world?

matrim

This is the important line

provided of course that the bidding does not go higher, the hammer will fall and the property will be theirs

E.g. if you bid 35k as the only bidder it's yours but if you bid 34k the seller might turn you down.

But if you bid 35k and there are 3 other buyers the price will keep going up with no maximum set until there is only 1 buyer left

Monty Burnz

matrim wrote: »

This is the important line



E.g. if you bid 35k as the only bidder it's yours but if you bid 34k the seller might turn you down.

But if you bid 35k and there are 3 other buyers the price will keep going up with no maximum set until there is only 1 buyer left

Or, to look at it another way, if 35k is the top reserve and the bidding reaches 25k, then it might still sell at that price because the real reserve is only 20k.

skelliser

where can one see the list of properties?

smk89

Senna wrote: »

....aimed at stupid people.
Its a reserve, they set it low to create interest, then hope the bidding go much higher. They done it in a auction in Donegal last year. Advertised the reserve at 80k (4 bed detached house), create huge interest and a large crowd for the auction, in the end it sold for 140k, not far off what it would have been advertised for anyway.

It doesn't matter who the marketing is aimed at as long as it generates interest. If I was thick and saw a house I wanted at €35k I'd jump at the prospect.
Come to think of it, even if I was intelligent I would.

bobbyg

skelliser wrote: »

where can one see the list of properties?

It says the catologue is available today.

http://www.allsop.co.uk/283/irish-auctions

Monty Burnz

no money mo pro wrote: »

I honestly think that nothing good will come of this auctions.

If one house in an estate of 120 is sold for €50k the other 119 houses will be valued at €50k leaving the other homeowners in a very difficult situation.

That's nonsense to be honest. The alternative is to pretend that all the houses are worth whatever bubble price was paid for them originally.

a) Who is going to believe that?
b) And who does that benefit?

dollyk

Seaneh wrote: »

yes. They are. The market isn't even close to booming out... I reckon its about halfway there. Eventually people will realise their 280K 4 bed Semi-D is only actually worth about 80K at most, and when that happens and they realise the lunacy in continuing to pay a 20 odd year mortgage they will start cutting their losses and walking away from the houses, writing off the 5/6 years they have paid already and start renting again for less than half their mortgage.
Its happening in a lot of states in the US where people have realised their houses are never going to be worth what they paid for them and then if they cut their losses and start saving again they will be able to buy a better house for less than 1/3rd the price in a couple of years and still end up saving a **** ton of money in the long run.


If that starts happening here. We are really screwed and we now own the stupid mortgage debts because of government policy to nationalise the banks.

if we do go down this road, surely we will never get another mortgage in the future, and we will still have to pay the bank the difference in what they sold our house for ?, my house is now valued over 40k less that when i bought it for 5 years ago.:mad:

Solair

People seem to think that houses have some magic intrinsic value.

Your house is only worth what someone will pay for it. If nobody will pay anything for it, well, then your house is worthless.

It's taking a VERY long time for some people to get their heads around this basic bit of economics.

Senna

I foresee lots of people buying houses and flats for very little money in the arse hole of nowhere. They be laughing at paying 50K for what would have cost 250K a few years ago. But then they'll realise that unless you want to live in it or work near it, then it was a waste of 50k. Then property taxes will force them to sell it again, maybe getting 25K next time around.
Most of the cheap property now, is cheap for a reason. With interest rates rising, it might be different in the future, but at the moment prices are dropping, but the only property that's cheap is the rubbish no one would even give a second look at, if it were not of the 35k price tag.

LFC Murphy

Just wondering will the sale price be published after the auction is over?

Monty Burnz

Senna wrote: »

With interest rates rising, it might be different in the future, but at the moment prices are dropping, but the only property that's cheap is the rubbish no one would even give a second look at, if it were not of the 35k price tag.

Rising interest rates will only push property prices down even faster - buyers will be able to borrow less, and more people will be defaulting, increasing supply.

man.about.town

Dravokivich wrote: »

170k... still too expensive...

if 170k is too much for a home, you need to get a better job mate.

Monty Burnz

man.about.town wrote: »

if 170k is too much for a home, you need to get a better job mate.

It depends on the house. For a nice detached 4 bed house in some decent area of Dublin, it's not too much. For a small 2 bed apartment anywhere, it's too much. Whether a property represents value for money has nothing to do with a particular person's income.

Again, people's basic knowledge of economics is quite depressing and played a large role in creating and sustaining our ruinous bubble.

SaKuRa

LFC Murphy wrote: »

Just wondering will the sale price be published after the auction is over?

Just looked through the Allsops website on previous auctions and they show the results,just saw a house in UK go for 10K

What are peoples opinion on the houses in Dublin 14?Looking for one in this area.

http://www.auction.co.uk/irish/LotDetails.asp?A=734&MP=24&ID=734000041&S=L&O=A

http://www.auction.co.uk/irish/LotDetails.asp?A=734&MP=24&ID=734000026&S=L&O=A

yosemite_sam

tanyabond wrote: »

The houses might be bricks and water, but the land is still worth a lot of money! Like here for instance (listed yesterday morning) - http://www.daft.ie/searchsale.daft?id=580429

Is it, have a look at the completed houses for less than the cost of that site

tanyabond

yosemite_sam wrote: »

Is it, have a look at the completed houses for less than the cost of that site

:rolleyes:I was being sarcastic...

Damie

man.about.town wrote: »

if 170k is too much for a home, you need to get a better job mate.

:rolleyes:

beertons

SaKuRa wrote: »

What are peoples opinion on the houses in Dublin 14?Looking for one in this area.

Both need serious work done on them. Personally, I would go for Lot 26, as the house beside 25 blocks out alot of it's sun during the day. Used to live 5 mins from it, walked by it several times, and the house with the towers is a bit of an eyesore aswell. Both have lovely big gardens, perfect for your own personal vegetable patch. I'm going up to the auction purely to view those auctions.

jellybeane

bobbyg wrote: »

Sorry this is from their website, maybe I was wrong.

Allsop Announce First Irish Auction on 15th April at the Shelbourne Hotel, Dublin
In a fresh approach to buying and selling property, Ireland’s first distressed multi lot property auction will take place on 15th April at the Shelbourne Hotel, Dublin.
The auction will be held by Allsop and Space, an established real estate consultancy in Dublin. Their aim is to deliver to buyers a transparent forum within which bidders determine the value of property and are not dictated to by sellers who are clinging on to over optimistic and historic price aspirations.
Space approached Allsop last year with the objective of taking a renewed approach to the stagnation in the Irish property market. The collaboration combines Spaces’ knowledge and understanding of the Irish market with Allsop’s expertise and resources for holding successful multi lot property auctions.
The sale will comprise of over 80 lots from across the country including Dublin, the Midlands, South and South-East on behalf of a variety of receivers. All properties are distressed and will comprise predominantly residential stock but also some commercial and mixed use buildings. There is a combination of vacant and let property to appeal to all types of buyers.
Some of the properties on offer will have been offered by private treaty at much higher prices since the peak. For example, a modern three bedroom, two bathroom apartment in a prestigious central Dublin block was formerly on the market for over €900,000 (around £760,000). The maximum disclosed reserve is €220,000 (around £200,000).
"Nobody likes to buy assets in a market that they perceive to be uncertain" says Stephen McCarthy of Space. "This has been a real obstacle to renewed activity. And it's been compounded by the fact that many private sellers have been obstinately asking prices that are clearly historic and over optimistic. It's been very difficult to say what a property is actually worth in Ireland today.
We're now offering buyers a refreshing opportunity to set prices themselves. The room will determine value through competitive bidding, which subsequently could offer crucial benchmarking to the market to establish where property values really are at the moment"
Bidders are anticipated to range from first time buyers, who have been unwilling to make their first purchase in an uncertain market, to seasoned investors seeking opportunity from rental returns.
Historically, auctions have generally been confined to small or single lot sales. Due to the rise in popularity in websites such as EBay and the real need for change in the Irish property market, the auction route is becoming an increasingly popular method of sale. The auctioneers expect strong interest from both Irish and overseas buyers who are keen to see movement with competitively priced lots acting as catalysts.
In a departure from the UK practice of quoting guide price ranges for each lot prior to auction (indicating the band of figures within which the vendor is likely to set the reserve price), the Irish sale will publish a maximum reserve price. The ultimate figure will not exceed, and may be lower than, the amount quoted."It delivers a very clear message to newcomer buyers" says Gary Murphy, partner and auctioneer at Allsop. "We want bidders to appreciate immediately that, if they can afford to bid the disclosed maximum, then, provided of course that the bidding does not go higher, the hammer will fall and the property will be theirs. It's that transparent".If successful, Allsop Space will bring further distressed stock to market at increasingly larger auction sales in Dublin with a further two auctions planned for this year, dates to be confirmed.
"It's been an exciting project to develop" says Murphy. "If the sale goes as well as we hope, we are confident that many of the other banks and receivers to whom we've been speaking, will also want to play a large part in future sales."
The catalogue will be available in print and on line from Saturday 5 March.
Allsop's Murphy said "We shall be marketing to both Irish and UK buyers. The launch of the Dublin catalogue will coincide with the publication of our 29 and 31 March UK brochure, from which Ireland will also be promoted. Our clients will benefit from Allsop’s online database of 220,000 registered buyers".
Buyers will be able to bid on the day from the auction room itself or by phone, by proxy or by internet. All properties will be available for viewing prior to auction, those bidding must have their finance in place, with a 10% deposit payable on the day.
Further information about the auction is available by phone on 01 676 2033. Printed and online catalogues are available will be available from 4th March.

The "Ultimate Figure" they are talking about there is the ultimate RESERVE figure not the ultimate sale price.

You should also check out sections A3.5 and A3.6 in the "Auction Conduct Conditions" for this auction. The Minimum reserve price is not revealed and can be in theory be set HIGHER than the "Maximum" reserve (!). Both minimum and maximum reserve can be changed just before the auction and the vendor (or his agents) are free to make dodgy, but legal, bids up to the Minimum reserve price. So you cannot trust that anyone bidding against you is not falsely pushing up the price. So just like the AMV during the boom, they can set a max reserve at 400k to attract interest and then change the reserves and all it takes is for one fool to be get carried away and exceed the opening bids which could be placed by the vendor, the estate agent, the vendors mates, the banks, faceless remote bidders and all of this is legal ! It could be worse than a used car auction where you can actually see the auction house staff sitting in the audience putting in bids. Then of course the estate agents will claim a great victory that the market has bounced off the bottom. I suspect that some buyers on that auction day will live to regret the experience. BUYER BEWARE at auction. Get a solicitor to check out what you are actually buying and the debts you may be signing up for. And after that, beware of the sharks in the Irish property industry.

Any by the way, the estate agents are now telling you that prices have dropped 50% .... well they had already dropped by up to 52% in May 2009 according to Orna Mulcahy in The Irish Times :

http://daftproperty.blogspot.com/2009/05/dublin-house-prices-fall-by-50.html

and since then they've been feeding the public b.s. surveys based on "asking" prices, not actual sale prices.