Factors which influence future resale when purchasing a property

Tristrams Shandied

Just want to get some opinions on this. Take two properties in similar areas close to each other, 2 bed, both in quiet residential Dublin areas, good location, both at the same price built in the noughties.

One is a 2 bed apartment in an established small gated complex with more luxurious style finish/decor. The other is a 2 bed mid-terrace house in a similarly small quiet estate with decent size back garden and front drive with parking but the majority of the houses in the estate would be 3 and 4 beds. Modern decor but not to the same standard as the apartment.

If one was selling on after 2 years, for example, which might have the potential to sell quicker? Would a 2 bed mid terrace in a small estate where the majority of houses are 3 and 4 beds be mostly only attractive to BTL investors as most people looking for a more permanent home might be more interested in 3 and 4 beds hence reducing the pool of potential buyers. What's the current market like for 2 bed houses?

I know it's a wide open question but as it would just be a stop gap property before relocating elsewhere /purchasing another property the resale factor would be significant.

TLDR: 2 bed luxury style apartment v 2 bed mid-terrace for quick future resale.

athtrasna

House. Sale is in your hands, no management company, private outside space and less dense development.

jomalone14

Definitely house. For all of the above reasons plus own front door, no shared areas etc
You can always modernise the house to the same spec as the apartment over time.

newacc2015

IMO an apartment is still more desirable in Ireland and will continue to be unless New York style 1000-1200 sq foot 2 bedroom apartments in the centre of the city. Irish people would commute 90 mins each day to have a house with a garden they wont use than a large apartment in town.

Decor is not really important. Everyone is different. What some might consider 'luxurious', plenty would call it tacky. I have friends who have redecorated their house in a 'modern style'. To me it looks like some from early noughties New Jersey in a bad way. Think Carmela Soprano on a budget.

I would rather buy a priced right property, that needs work than a property a seller considers 'modern' but to 90% of people their level of modern doesn't justify the price

Del2005

Definitely the house. The apartment is going to have a management fee of around €1k per annum.

With the way the government are fcuking up the rental market I doubt that there will be any BTL soon so you'd be selling to a family and they rather houses.

Thomas Pink

Location, location, location.......and location!!

Mrs OBumble

Tristrams Shandied wrote: »

Would a 2 bed mid terrace in a small estate where the majority of houses are 3 and 4 beds be mostly only attractive to BTL investors as most people looking for a more permanent home might be more interested in 3 and 4 beds hence reducing the pool of potential buyers.

No. Older people would interested in trading down to a smaller house. And some couples who could not afford a 3-bed.

4ensic15

There were apartments built in Milltown in Dublin 40 years ago. They cost more than twice the price of nearby houses. Now, second-hand, they are worth less than half the price of the same houses. Apartments do not hold their value relative to houses as they eventually tend to date.

Tristrams Shandied

Just to update this thread.

The house in question went sale agreed in just over three weeks from when it was first advertised. The apartment, I discovered, had been listed for much longer and is still for sale. So you were all correct. For me it was it was a case of starting to look at the market within a certain price range and location, and using both properties as a guide as to which would shift quicker when reselling with possible appreciation in terms of value.

The_Conductor

One thing though- it would be foolhardy to use past history as a predicator of future performance for either property (as an investment).

A lot of the lesser demand for the apartment is built into its price already- as is a lot of the higher demand for ye two bed semi. There is nothing to say either (or both) may not become more equal in value as time goes by.

Property taxes are set to rise again in 2020 to better reflect actual values of the property alongside spending needs in the local authority areas in which they're based (there is also a proposal to add a 'size' element to the equation at this point- to ensure there is cognisance of smaller dwellings in some urban areas- versus larger constructions elsewhere- so the value of the property would not be the sole determinent of its property tax.

Once property taxes rise as they have been predicted to- the management charge aspect of the apartment may be smoothed out to a certain extent versus the property tax charge of a larger dwelling- which may make the apartment more attractive to certain purchasers.

Personally- I live in a townhouse, in an excellent location- but have young children and no garden. The opportunity to give them an enclosed play space where I knew they were safe- would be very attractive to me- however, the higher value in my eyes- is location- and I am in an excellent location.

If the apartment is, as you say, finished to a far higher standard than the house was- and has been sitting on the market for some time- unloved by prospective purchasers- but is in a good location- the obvious part of the equation that is out of kilter- is price. It might be a good time to make an offer significantly below the asking for the apartment. Keep in mind- the Dublin market in particular- actually went into reverse in the final 4 months of 2016 and is now barely bumping along (versus the rest of the country which appears to be in rude good health).

If the apartment was priced more appropriately- it would sell- and if its inherent 'worth' versus alternate property prices is built into the price- there is no reason that it would be worth less, as an investment, when you go to sell it in future.

lawred2

newacc2015 wrote: »

IMO an apartment is still more desirable in Ireland and will continue to be unless New York style 1000-1200 sq foot 2 bedroom apartments in the centre of the city. Irish people would commute 90 mins each day to have a house with a garden they wont use than a large apartment in town.

Decor is not really important. Everyone is different. What some might consider 'luxurious', plenty would call it tacky. I have friends who have redecorated their house in a 'modern style'. To me it looks like some from early noughties New Jersey in a bad way. Think Carmela Soprano on a budget.

I would rather buy a priced right property, that needs work than a property a seller considers 'modern' but to 90% of people their level of modern doesn't justify the price

Presume you meant house is still more desirable

Sleepy

A two bed house with a large back garden also offers thr potential to convert it to a 3 bed via attic conversion or extension. An apartment can never offer that.

Cyrus

it all depends

we have sold our two bed apartment (1100 sq feet), its in a desirable development in a desirable area and we were out the door with viewings from downsizers who have sold their houses.