Period house sells for 2.5% of 2005 purchase price

fro9etb8j5qsl2

Bagnelastown House, a derelict house dating from the 1700s was sold at auction for €250,000 yesterday. The property which sits on a 20 acre site was bought in 2005 for €10M :eek: :eek: It had been valued at up to €12M at the time :eek: The developer who bought it planned to build residential housing estates on it but planning permission ran out before the property 'crash'.

2.5% of the 2005 purchase price..... It doesn't show how bad things are now, it just shows how ludicrously inflated things were then. Were all these Walter Mitty 'developers' really silly enough to believe that the fantasy good times would never end???

Sala

I wish all houses were 2.5 % of boom time prices:D

EricPraline

From the article below it's easy to see why the value has fallen so dramatically:

• Planning permission for 160 houses was expired.
• The house is a protected structure.
• The house was recently damaged by fire.

http://www.independent.ie/lifestyle/property-plus/in-2005-a-developer-paid-10m-for-this-derelict-carlow-house-on-20acres-today-its-yours-for-130000-3139267.html

seamus

Drew Flat Ferryboat wrote: »

The developer who bought it planned to build residential housing estates on it but planning permission ran out before the property 'crash'.

Actually it looks like he had planning permission but then the crash kicked him out of the market.

I suspect that the unfortunate developer was a bit small time, fancied himself a high-roller and thought that €12m for a 20 acre site in Co. Meath with FPP was a bargain. The plan was no doubt to build the 160 houses and sell them at €300,000 each for a total price of €48m. The developer himself would probably walk away with €10m cash in the bank.

If someone presented those kind of figures to you and told you that the bank would happily back you up, it would be hard to turn down.

The planning permission was the only thing giving the site value, without that it's just a field with a ruin in it.

Blackjack

seamus wrote: »

Actually it looks like he had planning permission but then the crash kicked him out of the market.

I suspect that the unfortunate developer was a bit small time, fancied himself a high-roller and thought that €12m for a 20 acre site in Co. Meath with FPP was a bargain. The plan was no doubt to build the 160 houses and sell them at €300,000 each for a total price of €48m. The developer himself would probably walk away with €10m cash in the bank.

If someone presented those kind of figures to you and told you that the bank would happily back you up, it would be hard to turn down.

The planning permission was the only thing giving the site value, without that it's just a field with a ruin in it.

I'm being a pedant, but it's in Carlow.

seamus

Blackjack wrote: »

I'm being a pedant, but it's in Carlow.

When I hear "Bagnelstown" my brain immediately replies "Co. Meath", for some reason.

At the time the guy was buying, it could have been in Gaoth Dobhair and it would still have been considered a safe investment.

Blackjack

seamus wrote: »

When I hear "Bagnelstown" my brain immediately replies "Co. Meath", for some reason.

At the time the guy was buying, it could have been in Gaoth Dobhair and it would still have been considered a safe investment.

Very true. Property was the "sure thing" alright.

latenia

He overpaid IMO.