Allsop Auction 15/04/11

theofficepest2

quozl wrote: »

Please explain this? I think it's incorrect and you need to give some justification for a statement like that.

Firstly sound man for the info, on the last point, there aren't enough rental properties on the market to go round, so not everyone can rent, that would mean some people have to buy. And there is even more of a shortfall in the number of gaffs suitable for families.


Don't get me wrong, I understand the benefits of renting, I even posted before looking for any input from people who had been long term renting with kids (say people who had waited out the ahem boom), no one responded though. :rolleyes:

lainey316

JoeyJJ wrote: »

I hope the Estate agents can sell this news to their vendors in an attempt to lower demands on asking prices and see if things get moving.

I have been looking at houses in SCD and one house only on the market 2 weeks is more or less sale agreed however the ad hasn't been updated. There was a Bid on it at 96% of asking when I was asked to **** or get off the pot and I got off the pot however I expect it to sell quickly. This all happened because the price was very realistic and there was lots of interest I believe and a hell of a lot of viewings. I was initially thinking of offering around 87% myself.

Having similar experiences in D6w. Have seen two properties go sale agreed in less than two weeks, a third went on the market at 250k Friday afternoon, had an offer of 230k by Tuesday afternoon (it needs a lot of work - wiring, new bathroom/kitchen, windows plus all the cosmetic stuff) and is, last I heard under offer at 243k. There were an awful lot of people viewing it last Saturday, and most were first viewers. For a 3 bed semi 250k seems very, very competitive right now.

JoeyJJ

lainey316 wrote: »

Having similar experiences in D6w. Have seen two properties go sale agreed in less than two weeks, a third went on the market at 250k Friday afternoon, had an offer of 230k by Tuesday afternoon (it needs a lot of work - wiring, new bathroom/kitchen, windows plus all the cosmetic stuff) and is, last I heard under offer at 243k. There were an awful lot of people viewing it last Saturday, and most were first viewers. For a 3 bed semi 250k seems very, very competitive right now.

Yeah nearly went for a viewing on that myself, wasn't 100% suitable to me but the price looked good. Those chasing down the market are a step behind and will suffer.

D1stant

lainey316 wrote: »

For a 3 bed semi 250k seems very, very competitive right now.

Ah Lads. Are we back to Two thousand and dumb again?

Average industrial wage = 35k say, 250k is 7.15 times that

Mortgage at 90% LTV is about 1,450 per month on a 25 year term, Average rental is say 900E?

If you think that paying a premium of over 500E a month for the luxury of being tied to property in a falling market is attractive, I wish you the best of luck

lainey316

D1stant wrote: »

Ah Lads. Are we back to Two thousand and dumb again?

Average industrial wage = 35k say, 250k is 7.15 times that

Mortgage at 90% LTV is about 1,450 per month on a 25 year term, Average rental is say 900E?

If you think that paying a premium of over 500E a month for the luxury of being tied to property in a falling market is attractive, I wish you the best of luck

Mortgage would be region €1316 @3.6% (on a 20 yr)
Average rental in the area for a 3 bed house region €1150 rounded down.

The average industrial wage doesn't apply to every single house or area in the country of course. Based on the viewers, cars and general area I'd put average household income there at 50-55k, very conservatively.

But as I said, competitive right now. Not necessarily ultimately value but competitive in the market right now.

D1stant

Doesnt really matter what the prospective buyers earn, or if they buy for cash. The ratio of average industrial wage to house price is way too high. Would have to be a pretty special semi D to warrant something greater than 5 IMHO

And 3.6% is I think very optimistic

1150 per month (Ouch) at 10 months occupancy at 7% yield is 160k.

There are just too many factors stacked against buying a semiD in Ireland, anywhere in Ireland for 250k.

skelliser

was speaking to a friend who was at this and interested in a particular place.
He said the hype surrounding this was pure bull. vast majority of the people there were just rubbernecking. The media made up about half the people there and they were the only people who were asked to leave.

The vested interests succeeded to protraying this auction as a frenzy, it was far from it.

Treehouse72

lainey316 wrote: »

Mortgage would be region €1316 @3.6% (on a 20 yr)

Not sure where you'd find a 20 year mortgage at 3.6% Lainey.

lainey316

Treehouse72 wrote: »

Not sure where you'd find a 20 year mortgage at 3.6% Lainey.

Oh you mean over the full 20 years? Obviously. It's just the 3 year fixed rate. But comparing payments to rent, as per the post above, then I can only compare like with like, so I can only compare what's available now to what the rent is now in the area. Not what it might be in 1 or 3 or 5 or 15 years. Who knows what the rate or the rent or the average industrial wage will be or whether 6w will have turned into a slum...

Regardless, someone else has offered the asking for the property already.

Tech3

Youll be lucky to get 7% when that 3 year fixed rate term ends.

JoeyJJ

Looks like Allsop are going to auction 200 properties in July. Wonder when Nama will jump.

http://namawinelake.wordpress.com/2011/04/20/next-allsop-auction-announced-for-6th-july-2011-%e2%80%93-200-lots-to-be-sold/

Dymo

JoeyJJ wrote: »

Looks like Allsop are going to auction 200 properties in July. Wonder when Nama will jump.

http://namawinelake.wordpress.com/2011/04/20/next-allsop-auction-announced-for-6th-july-2011-%e2%80%93-200-lots-to-be-sold/

These auctions are really gong to kill the property market for a while, eventually people will get tired of them but for the present every property will be competing with these auction prices and nobody is going to buy.

Snakeblood

Dymo wrote: »

These auctions are really gong to kill the property market for a while, eventually people will get tired of them but for the present every property will be competing with these auction prices and nobody is going to buy.

Nobody is buying though.

Unrealistic

Snakeblood wrote: »

Dymo wrote: »

These auctions are really gong to kill the property market for a while, eventually people will get tired of them but for the present every property will be competing with these auction prices and nobody is going to buy.

Nobody is buying though.

I think there are lots of people ready to buy it is just that nobody is selling at prices the majority of potential buyers consider to be value. Rather than killing the property market these auctions are likely to unlock it by providing an unmissable dose of reality to deluded sellers about the worth of their properties. Slowly the message is sinking in that the boom is not coming back and that we are on a downward trend for at least a decade. It's either price to sell today or be forced to sell for much less tomorrow.

mrgaa1

i've seen on DAFT yesterday, but I can't find it now, 3-bed houses for sale at around £60k. I think they were new but not finished. When I find it again I'll post it. Perhaps thats value as there is a bottom somewhere out there in some places. Other places prices are still well up the rungs of the ladder.

Unrealistic

mrgaa1 wrote: »

i've seen on DAFT yesterday, but I can't find it now, 3-bed houses for sale at around £60k. I think they were new but not finished. When I find it again I'll post it. Perhaps thats value as there is a bottom somewhere out there in some places. Other places prices are still well up the rungs of the ladder.

These maybe?
http://www.daft.ie/searchsale.daft?id=490627

Snakeblood

Unrealistic wrote: »

I think there are lots of people ready to buy it is just that nobody is selling at prices the majority of potential buyers consider to be value. Rather than killing the property market these auctions are likely to unlock it by providing an unmissable dose of reality to deluded sellers about the worth of their properties. Slowly the message is sinking in that the boom is not coming back and that we are on a downward trend for at least a decade. It's either price to sell today or be forced to sell for much less tomorrow.

I think the first houses at auction are going to get the best of the attention, there's going to be a gradual realisation that there are going to be hundreds of these auctions for bankrupt developers and property owners, and the returns will sink through the floor. Hopefully that will prompt people to start buying, but I think people are gunshy at the moment, I know I am.

Treehouse72

Snakeblood wrote: »

I think the first houses at auction are going to get the best of the attention, there's going to be a gradual realisation that there are going to be hundreds of these auctions for bankrupt developers and property owners, and the returns will sink through the floor.

I suspect that grim realisation has probably by now dawned on some of the greater fools who jumped last week.

Damie

During the bubble it was ....

....quickest to the draw!!!

In first = make the money

now its a case of catching the ball just before it bounces again......unfortunatly the ball is flat:(

JoeyJJ

Flat ball is no harm, stop people looking at houses for sale and them thinking they are millionaires with the equity they have and get carried away with personal debt on the back of it.

Need need to stop with the boom and bust and have raises linked with inflation.

djmcr

JoeyJJ wrote: »

Flat ball is no harm, stop people looking at houses for sale and them thinking they are millionaires with the equity they have and get carried away with personal debt on the back of it.

Need need to stop with the boom and bust and have raises linked with inflation.

Totally agree, we seem to be under the impression in this country or maybe being led to believe that house prices are about to soar again as soon as the floor is established.

CheckRaiseIRL

I hear of a lot of people offering 85%+ of asking.

rent allowance will decrease in 8 months with a further reduction in 2013. Combine this with a recent survey that found 428,000 people believe there is no future in ireland for themselves or their families and nama simply cant afford to hold out and I believe it wont be until mid 2013 before reality starts to sink in fully and it will be the real collapse of the property market. These auction will provide a stepping stone for both reduced expectations and increased nama sales without the banks having much ability to interfere in the market.

plan to rent for the next two years and only then start the hunt for your home if your still in the country.

washman3

checkraise, you're dead on, actually being slightly optimistic if i may say!! we've seen nothing near the bottom yet, there will be a total collapse. what we saw at the aucion was "mattress money" and a few hundred inquisitive clowns,we saw the exact same at those massive machinery sales in Kildare 3 years ago,mayhem at the first 1 or 2 auctions,with lots being sold for way above their value, then a scaling down with prices going through the floor with the only people buying being machinery exporters. well we can export unsold houses so we can see the endgame. Another Allsops auction on July 7. 200 properties already lined up.!! 5 auctions a year planned from now on.

jimmyneo1

I know Allsop's are planning on doing a few more of these in the coming year/years but is there any other agents or banks who will be settung up similar auctions?

Unrealistic

jimmyneo1 wrote: »

I know Allsop's are planning on doing a few more of these in the coming year/years but is there any other agents or banks who will be settung up similar auctions?

http://www.sbpost.ie/news/ireland/savills-to-hold-national-property-auction-55923.html

washman3

i would say we will definately see a move from the banks now. the squeeze has been put on, seemingly from the IMF. banks were holding off all along in the deluded hope that prices would recover and the madness would return again,but the penny has begun to drop that we will not see this for a long,long time to come. take a look at todays exchequer figures.! we will still hear a lot of spin from the vested intrests,we can expect this,but people have finally wised up. Savills are making a move now,this will cause a domino effect with other auctioneers/banks/developers joining the race. by the way tomorrows Examiner will have a headline "We've reached the bottom" this exact headline also appeared in the same paper 2 years ago.!!! (or 40% ago)

washman3

intresting to see tonights Primetime where developer Liam Carrolls apartments at the "Gasworks" in Dublin are on the market,these are top of the range,prime location and asking price is 65% less than during the "boom" if we are seeing that level of drop in a case like this, then what can we expect around the country,especially in areas where unemployment is rife. i would estimate 80%
and remember that these were only asking prices at the Gasworks site.!