Irish house price drop

tootsy70

Just curious to know what sort of money where the houses worth in your local area back in the boom years and what would they be selling for or even sold for now in 2013 or even the end of last year.

The reason why i ask this is because theres a cousin of mine who has 50k cash and has been looking at buying a holiday cottage somewhere in in mayo,galway,sligo,leitrim or even north west cavan. Shes been telling me that shes expecting a cottage ready to move into that would have sold between 150-200k in the boom. Now to me this sounds abit to ambitious as this would be 75% drop in price from peak time prices and dont think many people would settle for such a loss.

Shes never off the property web sites this last 2 years and has been keeping track of some properties that have fallen sharply in this price bracket, infact she just lost out on one that was kept dropping from 150k to 65 and it sold for just over 60k.

I understand that houses are only really worth what people are going to pay for them but 50k for a cottage ready to walk into does sound to good to be true even in this climate. I could be wrong thou because as for me and property prices , i wouldnt have the first clue whats worth what around the country.

Just wondering what your thoughts would be and have you seen some sharp price drops around your area liked this.

LowKeyReturn

7 bedroom place in Mayo with a fecking stables going for 170K recently. I would think that there comes a point where prices bottom out. e.g. can;t get any lower but then I bought an apartment in the boom for 295K that's now worth 85K so take my advice with a pinch of salt.

EDIT: Seems move-in-able to me: http://www.daft.ie/searchsale.daft?id=715730

Bit of work needed: http://www.daft.ie/searchsale.daft?id=713262

Come on legal career - nice country practice down in the South west and a mansion for 250K, a couple of horses and a boat!

tootsy70

LowKeyReturn wrote: »

7 bedroom place in Mayo with a fecking stables going for 170K recently. I would think that there comes a point where prices bottom out. e.g. can;t get any lower but then I bought an apartment in the boom for 295K that's now worth 85K so take my advice with a pinch of salt.

EDIT: Seems move-in-able to me: http://www.daft.ie/searchsale.daft?id=715730

Bit of work needed: http://www.daft.ie/searchsale.daft?id=713262

Come on legal career - nice country practice down in the South west and a mansion for 250K, a couple of horses and a boat!

Overpriced the both of these properties IMO. 7bed in mayo, can you tell me what part of mayo it was and have you any links.

LowKeyReturn

tootsy70 wrote: »

Overpriced the both of these properties IMO. 7bed in mayo, can you tell me what part of mayo it was and have you any links.

Not a clue but it was linked in another thread here.

Tigger

6 bed on 13acres sold on last alsops for 120
it was on daft for 110 for ages but alsops is better :eek:

tootsy70

Tigger wrote: »

6 bed on 13acres sold on last alsops for 120
it was on daft for 110 for ages but alsops is better :eek:

More interested in private sales, not auctions

The_Conductor

Mine was valued for mortgage purposes in 2007 @ 480k. An identical house a few doors down sold for 140k recently. Thats a 70% fall. I paid IR£200k for the property in 1999- aka EUR260k. I'm guessing prices here are now back at 1994-1995 levels (which were inflated at the time).

L1011

Local paper has a 1000th issue edition this week. A brand new 3 bed, near enough to across the road from me, in 1998 was selling for 5k more than I paid for an older 3 bed last year. I suspect its devalued since then. So in some areas, we're back to 1997/1998 anyway, and Maynooth is seen as having its own market due to the huge rental demand.

An identical house to mine was marked as sold at 233% of what I paid on Daft in 2008, no way to know what it did sell for though. So again, in some areas, the drop is well in to the 60s, again with an allegedly strong local market.

the_syco

tootsy70 wrote: »

The reason why i ask this is because theres a cousin of mine who has 50k cash and has been looking at buying a holiday cottage somewhere in in mayo,galway,sligo,leitrim or even north west cavan. Shes been telling me that shes expecting a cottage ready to move into that would have sold between 150-200k in the boom. Now to me this sounds abit to ambitious as this would be 75% drop in price from peak time prices and dont think many people would settle for such a loss.

I found a wee little cottage in Leitrim; http://www.daft.ie/1715311

€44,900 with two bedrooms, one bathroom, and no neighbours!

From the look of the cottage, I was expecting a donkey in one of the pictures! 12 minutes to Carrick on Shannon. I'd consider that a plus; 12 minutes to one of the maddest small towns in Ireland :P

I doubt this was ever on the market during the boom; it looks like somewhere that someone lived in for the last 70 years!

Twoandahalfmen

The coast Baldoyle
2006 650000-750000
Now roughly 375000

The_Conductor

In short- houses (of all types) have probably dropped ~50%
Townhouses and Apartments- have probably dropped 70-80%
Good luck to your cousin who imagines they'll get a 75-80% discount on a cottage- sure, they can chance their arm, if its something that requires considerable work, perhaps they may even be successful- but walk in condition? Not likely. Of course- you can buy a repossessed holiday home lease for this- with an annual management charge on top of property tax etc- but then again, this isn't what you have in mind.

You can buy perfectly reasonable property in rural areas for a pittance- but what your cousin is suggesting just seems a bridge too far imho

unkymo

I've been renting in the same house since 2006.

It was put up for sale in 2008 for 180k, standard 3 bedroom house.
1 person has looked at it in 5 years, still up for sale.

I was looking through the local paper a few weeks ago and another house in my estate was listed, I spat my tea out in shock!

http://www.daft.ie/searchsale.daft?id=714400

The_Conductor

unkymo wrote: »

I was looking through the local paper a few weeks ago and another house in my estate was listed, I spat my tea out in shock!

http://www.daft.ie/searchsale.daft?id=714400

Why are you surprised?
Price looks to be in keeping with national trends- with a possible downside of another 10k or so.
If its been on the market for 5 years- a) it hasn't been priced to sell, and b) local demand has been insufficient to induce anyone to even contemplate it.

We really need to get over the monetary value of houses- its a roof over our heads, and the lower the fair market value, the lower our property tax.

washman3

Twoandahalfmen wrote: »

The coast Baldoyle
2006 650000-750000
Now roughly 375000

Still well overvalued. i would estimate this will end up 250 to 275k max

Bigcheeze

unkymo wrote: »

I've been renting in the same house since 2006.

It was put up for sale in 2008 for 180k, standard 3 bedroom house.
1 person has looked at it in 5 years, still up for sale.

I was looking through the local paper a few weeks ago and another house in my estate was listed, I spat my tea out in shock!

http://www.daft.ie/searchsale.daft?id=714400

I'm curious what your rent is?

unkymo

220 per month.

I'm a bit shocked because I could nearly afford the mortgage on it!

If 2 people got a 100k mortgage over 20 years it works out more or less the same as my rent.

I've absolutely no intention of buying a house now but in a couple of years if the prices are still coming down, who knows!

The_Conductor

unkymo wrote: »

220 per month.

I'm a bit shocked because I could nearly afford the mortgage on it!

If 2 people got a 100k mortgage over 20 years it works out more or less the same as my rent.

I've absolutely no intention of buying a house now but in a couple of years if the prices are still coming down, who knows!

You're actually wrong with your calculations.

Property value 100k
Max mortgage 92% aka 92k
Fix for 5 years and variable for years 6 to 20
Years 1-5 repayment = 628 per month
Years 6-20 repayment = 599 per month

Assumptions APR = 4.98% (aka the current rate you'll get from AIB or BOI)
If rates go up (which they most certainly will)- then the indicative figures above increase even further.

Google 'Mortgage Calculator' and plug in your figures- you'll see the repayments are not nearly as good as you think they are.

unkymo

smccarrick wrote: »

You're actually wrong with your calculations.

Property value 100k
Max mortgage 92% aka 92k
Fix for 5 years and variable for years 6 to 20
Years 1-5 repayment = 628 per month
Years 6-20 repayment = 599 per month

Assumptions APR = 4.98% (aka the current rate you'll get from AIB or BOI)
If rates go up (which they most certainly will)- then the indicative figures above increase even further.

Google 'Mortgage Calculator' and plug in your figures- you'll see the repayments are not nearly as good as you think they are.

So for an extra 25 quid a week per person, I could go from renting a 3 bedroom house to owning a 4 bedroom house around the corner! :eek:

hfallada

unkymo wrote: »

So for an extra 25 quid a week per person, I could go from renting a 3 bedroom house to owning a 4 bedroom house around the corner! :eek:

http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=realestate

This will tell you

Twoandahalfmen

washman3 wrote: »

Still well overvalued. i would estimate this will end up 250 to 275k max

That's the value we got last week.
Houses here are slightly creeping up

Norwesterner

In my area (Derry) prices are at around 2000 levels.
I sold a 3 bed house for 50k in 2000 and recently saw the exact the type of house in the same street for same ASKING price.
They'd have been fetching 140k in the ahem#..."Boom".
Considering inflation and wage increases, it's actually cheaper today than back then.

What a lot of people don't realise is that the property market collapse in the 6 Counties has been even greater than in the South.
Namawinelake described it as the "Worst property collapse in the world"
Why the Northern media refuse to cover this is beyond me.
P.S We're still not at the bottom.

engineermike

In Westmeath - bought for 180K in 2008 (buyer wanted 210 at the time).
Now valued at 90 - 100 K (if i'm lucky) & I put another 50 K into it since buying, modernizing it and building my office out the back.

Still though, happy out - going nowhere & the market can do what it wants, I won't be needing to upgrade or get a bigger home - I'm on the 'back 9' with the kids nearly all moved out and going to college etc. ( happy dance

Still though, out west there are super bargains to be had & there seems to be some demand from foreign investors / people looking for an idyllic holiday home etc. - I've noticed an upsurge in clients from abroad over the last year buying in various places all along the west coast.
I'd agree with the previous poster - 70 % might be achievable in some instances but then the property was either over valued during the boom, or needs a lot of work - or is unfinished in a ghost estate or something of that nature.
mike f

tootsy70

the_syco wrote: »

I found a wee little cottage in Leitrim; http://www.daft.ie/1715311

€44,900 with two bedrooms, one bathroom, and no neighbours!

From the look of the cottage, I was expecting a donkey in one of the pictures! 12 minutes to Carrick on Shannon. I'd consider that a plus; 12 minutes to one of the maddest small towns in Ireland :P

I doubt this was ever on the market during the boom; it looks like somewhere that someone lived in for the last 70 years!

One of the maddest towns in ireland. what do you mean when you say this

LowKeyReturn

tootsy70 wrote: »

One of the maddest towns in ireland. what do you mean when you say this

From what I understand the guards visit the place about once a month and the rest of the time they just look after themselves.

Maximus_1

I used to live/work in Carrick, its a great little town, especially this time of year, on the water, some nice places to eat and some great pubs. You are there in 2 hours easily from Dublin also

tootsy70

LowKeyReturn wrote: »

From what I understand the guards visit the place about once a month and the rest of the time they just look after themselves.

Why

LowKeyReturn

tootsy70 wrote: »

Why

Local stations where all closed down and there isn't one for miles around. This is all third hand info, but anyone I've spoken too speaks very fondly of the place.

Bullseye1

smccarrick wrote: »

We really need to get over the monetary value of houses- its a roof over our heads, and the lower the fair market value, the lower our property tax.

Do you really think the property tax will be tied to the value of ones property going forward? I suspect it will be given a new name and will not relate to value at all. No way LAs are going to allow their tax intake lower as prices reduce.

tootsy70

LowKeyReturn wrote: »

Local stations where all closed down and there isn't one for miles around. This is all third hand info, but anyone I've spoken too speaks very fondly of the place.

I cant see it staying a nice place if theres no guards about

stevedublin

Bullseye1 wrote: »

Do you really think the property tax will be tied to the value of ones property going forward? I suspect it will be given a new name and will not relate to value at all. No way LAs are going to allow their tax intake lower as prices reduce.

The property tax is set at current levels for the next 3 (or is it 5?) years.
Property price reductions wont affect tax intake until after this period.

The_Conductor

Bullseye1 wrote: »

Do you really think the property tax will be tied to the value of ones property going forward? I suspect it will be given a new name and will not relate to value at all. No way LAs are going to allow their tax intake lower as prices reduce.

Local authorities won't care- as long as they get their pound of flesh from the central kitty that all the property tax is paid into. Aka- if there is a shortage of housing in South Dublin, nice areas of Cork or Galway- creating a locally buoyant market in those areas- those areas will subsidise further falls in the midlands or any other areas with an excess of supply over demand dampening prices.

There is also the residential charge to think about- a wholly independent tax, not related to the value of the property- akin to the Council tax in the UK.

And we'll have our water charges from next 1st of Jan on a fixed rate basis for the first year.

LA's are not going to worrying one little bit, imho.