Asking advice

BlueIsland

Asking price of house myself and partner wanna buy is 250,000. new development...5 bedroom...in kildare...2.045 square feet...we are mortgage approved and that.... Now we know asking prices are way out of sync with selling..My question is in regards to offers... we defintely gponna start 20% less than the asking so thats 200,000! I know it all depends on sellers position but would a guy not be mad to snap our hands off at that? Also there are allowances that come with the house. So say the kitchen allowance is 4,500.. Would it be common practice for a buyer to ask for their own people in to put in a kitchen with that allowance???

D3PO

Not an answer to your specific questiosn but I strongly advise you to think twice about buying in a new development.

BlueIsland

D3PO wrote: »

Not an answer to your specific questiosn but I strongly advise you to think twice about buying in a new development.

I guessed people would say that. thanks for that advice but not really what Im looking for. there are 6 of the 5 bedrooms and three are bought and been lived in so not gonna be a ghost development or anything.thanks anyway!

Duckjob

D3PO wrote: »

Not an answer to your specific questiosn but I strongly advise you to think twice about buying in a new development.

D3P0, just curious - Why do you say that, and do you mean in an unfinished new dev or just new developments in general ?

D3PO

Duckjob wrote: »

D3P0, just curious - Why do you say that, and do you mean in an unfinished new dev or just new developments in general ?

I was referring to unfinished new developments. There are so many people having difficulties in getting councils to take over unfinished estates, a good chance that many of the empty houses wont get sold aytime soon.

The OP says it wont be a ghost estate but can he really be sure. hes only talked about the 5 bed houses of which only half of them have been sold. What about the 4 beds or the 3 beds in this estate ?

It doesnt take long for bad elements to start smashing windows in or using unfinished or empty houses for all kinds of things.

Then theres the general build quality of new estates anywya. Pyrite issues (many estates around the place) , poor construction (priory hall for example) paper thin walls and so on so forth.

Im not saying all new estates are a bad idea but Id want to be pretty damn sure before getting involved in purchasing a new build especially one that clearly isnt finished going by the fac the OP is still talknig about kitchen finishes etc.

odds_on

Duckjob wrote: »

D3P0, just curious - Why do you say that, and do you mean in an unfinished new dev or just new developments in general ?

The problem with uncompleted developments is that the builder may suddenly decide that he can't afford to complete the works and goes bust. Anything wrong with the houses already built can't be rectified unless the owner pays for it himself.

Furthermore, the unfinished houses may fall into disrepair and never be completed.

Not my first choice for a location - especially at 200,000.

Someone recently posted a website showing unfinished estates around the country - downloadable.

http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,28071,en.xls

kennyb3

It's not just the fact that there may be some unoccupied houses, even if there is 100% occupation - the houses were prob thrown up - i'd be seriously worried about build quality.

I'd also be seriously worried about overpaying too - the same house will cost a lot less in 2 years time (esp at the rate of teh present falls).

And its nothing to do with negative equity - its the fact you ll be paying a higher mortgage than you should for teh rest of your life leaving lower disposable income!

desertcircus

BlueIsland wrote: »

Asking price of house myself and partner wanna buy is 250,000. new development...5 bedroom...in kildare...2.045 square feet...we are mortgage approved and that.... Now we know asking prices are way out of sync with selling..My question is in regards to offers... we defintely gponna start 20% less than the asking so thats 200,000! I know it all depends on sellers position but would a guy not be mad to snap our hands off at that? Also there are allowances that come with the house. So say the kitchen allowance is 4,500.. Would it be common practice for a buyer to ask for their own people in to put in a kitchen with that allowance???

I've taken a look at Daft to try and take a guess as to where you're talking about, and if I'm right it's the Willows in Allenwood? If so, it's a very high price for somewhere so far out and so detached from any sizeable town. It's also on the list of incomplete developments posted earlier: line 1380. There are two other developments listed for Allenwood on Daft, which makes three developments in a town which had a population of 667 at the last census. You'd be buying in what looks an awful lot like a heavily overserved market, thirty miles from Dublin.

On a more general point: a quarter of a million is a gigantic sum of money for any house. It's about ten times the average annual salary in Ireland, in a market where banks are wary of going up to four times annual salary. A five-bedroom house in a tiny village in Kildare is virtually guaranteed not to be worth anywhere near 250k.

Bear the following in mind:
1. This house will lose value from the moment you buy it. Not may; will. It's a hugely oversized house in a village of a few hundred people that already has three new developments trying to sell houses. Without wishing to sound alarmist, you could easily be looking at a house worth a hundred thousand in two years' time.
2. Unless you have a truly gigantic deposit, you're going to be in negative equity more or less from the moment you move in, and stay that way for a decade or more. That effectively means you're stuck in that house for at least ten years. Lose your job? Job gets moved? You and your partner split up? Estate goes to hell and you can't cope with the place anymore? In every one of those cases, you're going to be stuck with the house or else facing tens of thousands of debt.
3. The house will be selling for less in a year's time - and probably quite a bit less. It's going to lose more value in the next year than it would cost to rent a similar pace for the year. Don't buy when the market is still falling; it's lunacy.

If you really want an answer, though: I'd offer about eighty thousand quid. That's not a joke. That's the amount I'd feel comfortable paying on a house like that, and I wouldn't feel comfortable offering any more. Two hundred and fifty thousand quid means this house is for people who are earning over fifty thousand quid a year; in other words the richest 10-12% of people in the country. Is that house worth more than 90% of the houses in the country? No.

antiskeptic

kennyb3 wrote: »

It's not just the fact that there may be some unoccupied houses, even if there is 100% occupation - the houses were prob thrown up - i'd be seriously worried about build quality.

I lived in Holland for a number of years, in a town called Haarlem. There were plenty of buildings whose datestones went back to the 1650's and which were still in great condition (if a little flexed out of shape over the years). They were prized possessions.

I lived on a street which had been erected post-war and a couple of houses on the street had already been demolished on account of their being about to fall apart.

Unless it checked out good and proper, I'd not touch a thing built in the boom