Did you queue to get a new build house

Ginger83

endacl wrote: »

Can't wait for the next crash. Several deposits at the ready.

:pac:

+1 We'll never learn.

Lumen

goose banker wrote: »

Put yourself in the position of looking to buy a house in the north Wicklow area. Look through the property sites in this area, give yourself a budget of €265k for a 3 bed semi detached house and see what you come up with. That's what a 3 bed semi in the development cost. 4 bed semi's were €280k I think, thereabouts anyway. That's a new, A rated house that you can more or less walk in to when it's finished. What would you buy that does make economic sense?

Again, I'm not talking about your specific purchase. I'm stating that in the general case, excepting psychological effects, queueing for houses makes no economic sense, because it goes against the rational tendency of developers to maximize their return.

For instance: I have ten houses priced at 250k and fifty people in the queue. Within that population is a range of price tolerance between 250-280k, because everyone must be prepared to pay at least the asking price but some would pay more.

If the average price of the top 10 of those people is 275k, the developer can make another 10% by pricing it higher and precisely matching supply and demand.

PhoenixParker

Lumen wrote: »

I'm not questioning your motivations.

I would be extremely surprised if the developer was not attempting to get the highest price for his work. That's like asking for a pay cut. Who does that?

Actually what generally happens is that the first phase or two are marketed at a price slightly lower then the general market value in the area. This is for a number of reasons

1) Many people can't picture what the finished development will be like based on plans, so the market is smaller then for second hand houses, especially before much of the estate is complete.

2) It encourages people to take a risk on the unknown factors that come into play with a new development

3) It sells the houses quickly which is reassuring to the investors and banks financing the project

4) It generates buzz which attracts people to later phases

The last phase or two are where the developer will attempt to get the highest possible price for their work. The first few phases are typically good value compared with other properties locally.

Barely Hedged

Lumen wrote: »

Again, I'm not talking about your specific purchase. I'm stating that in the general case, excepting psychological effects, queueing for houses makes no economic sense, because it goes against the rational tendency of developers to maximize their return.

For instance: I have ten houses priced at 250k and fifty people in the queue. Within that population is a range of price tolerance between 250-280k, because everyone must be prepared to pay at least the asking price but some would pay more.

If the average price of the top 10 of those people is 275k, the developer can make another 10% by pricing it higher and precisely matching supply and demand.

Jaysus, give it a rest quoting the academic angle and take your head out of the books.

It's a new development. The developer generally fixes the price as a pre cursor for maintaining finance from the banks.

People queue because they want the pick of the houses on offer. This then becomes self fulfilling and people jockey for the pick of the rest.

It's not a complex economic model with a vast array of variables

Barely Hedged

Ginger83 wrote: »

+1 We'll never learn.

What a clueless statement.

athtrasna

Mod note

Posters are reminded that this thread is about queueing to buy a house. Not about psychological effects, government policy, or the next recession or judging those who choose to queue.

cloneslad

goose banker wrote: »

Skinny jeans seem to be socially desirable at present but I'm damned if I'm going to go out and buy a pair because everyone else is doing it.

I know emotions are running high here, Goose, but let's not disparage skinny jeans.


I don't think I could see myself queuing for a 500k house but that's just me. If people have the finances and the house is worth the money then I see no problem in it if it guarantees you the option you want. If it gets to the old rat race of queueing just to buy a 'starter home' then people will have to take a long hard look at themselves and what we have returned to.

I am currently saving to buy a house but with the prices for the areas I'm interested now well over 450k for a house that needs work, I am thinking more and more of renting for 3-4 more years and building either near my gf's home town or somewhere else in the country and living out my life as close to mortgage free as possible.

I don't want a 'starter home' I don't even fancy the thought of leaving my rental property so I'm sure as hell not going to spend a crippling amount of money in the hope that I can sell the house in a few years and upsize.

beertons

Not me, but I remember a housemate queueing for a gaff in Osberstown in 2004. There was a good few ahead of him, and you know the carry on back then, that by the time he got to the top, phase 1 & 2 were sold out. But he could put a deposit down for phase 3 or 4, but they were 40K more. Needless to say, he didn't buy there.

He was fierce grumpy when he got back to the house, and there was no talking to him. Drove to Monasterevin instead and bought a 3 bed.

recyclops

beertons wrote: »

Not me, but I remember a housemate queueing for a gaff in Osberstown in 2004. There was a good few ahead of him, and you know the carry on back then, that by the time he got to the top, phase 1 & 2 were sold out. But he could put a deposit down for phase 3 or 4, but they were 40K more. Needless to say, he didn't buy there.

He was fierce grumpy when he got back to the house, and there was no talking to him. Drove to Monasterevin instead and bought a 3 bed.

Now this is a different situation than what I was describing earlier. I had a budget which I believe was fairly modest tbh 230,000 it doesn't break the bank. It also couldn't get me a house here I grew up.

I don't think queueing to purchase a brand new A rated home which came in below my budget is madness. The house for all intends and purposes seems cheap in comparison to other properties within a few miles either side.

Now that being said the town where I bought had houses goin for double what I paid and these I agree are over priced.

Gumbo

cloneslad wrote: »

I know emotions are running high here, Goose, but let's not disparage skinny jeans.


I don't think I could see myself queuing for a 500k house but that's just me. If people have the finances and the house is worth the money then I see no problem in it if it guarantees you the option you want. If it gets to the old rat race of queueing just to buy a 'starter home' then people will have to take a long hard look at themselves and what we have returned to.

I am currently saving to buy a house but with the prices for the areas I'm interested now well over 450k for a house that needs work, I am thinking more and more of renting for 3-4 more years and building either near my gf's home town or somewhere else in the country and living out my life as close to mortgage free as possible.

I don't want a 'starter home' I don't even fancy the thought of leaving my rental property so I'm sure as hell not going to spend a crippling amount of money in the hope that I can sell the house in a few years and upsize.

Building a house, and living mortgage free don't go hand in hand, not with out current building costs and minimum building regulations. Unless you have 200k saved of course, you could build a 100sq. M house then.

carltonleon

We bought our house in 2002. There were 2 estates in the one area and we missed out on the first estate because it was sold out when we started looking. We rocked up late on the last day the first estate was being sold and the agent told us about the second estate being built on the rest of the site.
I emailed the estate agent every 2 weeks after that asking was the new estate on sale yet? I probably rang every 3 weeks.
Anyway I was sitting in work one Thursday and my mobile rang and it was the estate agent telling me that the house were being launched that Saturday. I said 'thanks for letting me know'. So, and much to my amazement, she then says to me, 'look you have been basically pestering us for the last 7 months so you can come into the office today and buy off the plans if you want'. Like a shot I was gone making a quick detour to get a deposit cheque written from my wife.
So I get to the estate agents and there is already someone buying from the plans before me. It comes to my turn and I pick the house with the biggest south facing back garden I can find and the added bonus is that there is a big green straight across the road from the house I picked. No extra cost for South facing garden or green across the road. Done Deal. I am happy as can be and delighted that my persistence paid off.
Anyway Friday night comes and I decide to drive past the new estate and there are people queuing up and quite a big queue. I am now feeling exceptionally lucky. Saturday comes and we go to see the showhouse and all is good, our house has one of the 'sold' red pins in it so no stress but you can see the stress on people's faces as they try to get what they want.
We were very lucky that we managed to buy off the plans before it even opened. Anyway fast forward 2 months and the next phase goes on sale. The price of the houses exactly the same as ours has gone up £12,000 (Punts not Euro as we were still in the dual circulation period). Not only that but they were also charging an extra £2000 for a South facing back garden and £2000 for a house that had a green across the road from it. That was really the start of the boom but you could see what was happening. We were just extremely lucky that we were able to pre buy. Would I have queued to get what I wanted and what I could afford ??? Absolutely I would. So if you want it bad enough and it works for you, do what you have to do to get it.

Grawns

carltonleon wrote: »

We bought our house in 2002. There were 2 estates in the one area and we missed out on the first estate because it was sold out when we started looking. We rocked up late on the last day the first estate was being sold and the agent told us about the second estate being built on the rest of the site.
I emailed the estate agent every 2 weeks after that asking was the new estate on sale yet? I probably rang every 3 weeks.
Anyway I was sitting in work one Thursday and my mobile rang and it was the estate agent telling me that the house were being launched that Saturday. I said 'thanks for letting me know'. So, and much to my amazement, she then says to me, 'look you have been basically pestering us for the last 7 months so you can come into the office today and buy off the plans if you want'. Like a shot I was gone making a quick detour to get a deposit cheque written from my wife.
So I get to the estate agents and there is already someone buying from the plans before me. It comes to my turn and I pick the house with the biggest south facing back garden I can find and the added bonus is that there is a big green straight across the road from the house I picked. No extra cost for South facing garden or green across the road. Done Deal. I am happy as can be and delighted that my persistence paid off.
Anyway Friday night comes and I decide to drive past the new estate and there are people queuing up and quite a big queue. I am now feeling exceptionally lucky. Saturday comes and we go to see the showhouse and all is good, our house has one of the 'sold' red pins in it so no stress but you can see the stress on people's faces as they try to get what they want.
We were very lucky that we managed to buy off the plans before it even opened. Anyway fast forward 2 months and the next phase goes on sale. The price of the houses exactly the same as ours has gone up £12,000 (Punts not Euro as we were still in the dual circulation period). Not only that but they were also charging an extra £2000 for a South facing back garden and £2000 for a house that had a green across the road from it. That was really the start of the boom but you could see what was happening. We were just extremely lucky that we were able to pre buy. Would I have queued to get what I wanted and what I could afford ??? Absolutely I would. So if you want it bad enough and it works for you, do what you have to do to get it.

You were so lucky😸. A south facing garden is the dream. Thank you for your story.

Grawns

beertons wrote: »

Not me, but I remember a housemate queueing for a gaff in Osberstown in 2004. There was a good few ahead of him, and you know the carry on back then, that by the time he got to the top, phase 1 & 2 were sold out. But he could put a deposit down for phase 3 or 4, but they were 40K more. Needless to say, he didn't buy there.

He was fierce grumpy when he got back to the house, and there was no talking to him. Drove to Monasterevin instead and bought a 3 bed.

That's what I don't want to happen. 😸
I have the money but I just have to figure a way to get near the front of the queue for my dream house, ( well dream affordable house). Am thinking of hiring someone to start the queue until we can get there. The logistics are a nightmare.

Grawns

Getting ready to queue Some practical questions to those who did it.

So let's say the house the launch is coming up on Saturday. I plan to start queuing on the Thursday lunchtime. The house is not near to where I currently live. I have someone taking over at 6pm.

Do I. Bring a chair? Where do I queue? In front of the show house? I suppose I can tell the builders I'm queuing and ask where to go. Phone the estate agent? If I'm the only looney there can I sit in my car? Leave my chair in the queue with a I'm over there in my car come say hello sign?
Toilet breaks?
I really want the full information so I can tell the people helping me out what to expect. 😸
I expect to be the first there. You snooze you lose.

goose banker

If I was you I'd definitely find out exactly where you need to go to get the house - imagine doing all that waiting only to find out that you were in the wrong place and people who only arrived got in ahead of you. Ask the auctioneer/builder exactly where to go and maybe re-verify this while you're waiting in the queue also just to be sure. Take a camping chair, brolly, warm clothes, food. Make sure you have phone battery life at all times too for updates to the situation. I know all this sounds crazy but that's what people are doing.

irlrobins

Once a queue gets established, start a list of names in order they joined. I'd say people are happy to let you sit in your car rather than in the chair all night once an order has been established. And I'm sure they won't mind you leaving for a few mins for calls of nature. They'll have to do the same themselves!

Wrap up warm, especially feet, hands and head. And get to know your new neighbours!

recyclops

goose banker wrote: »

If I was you I'd definitely find out exactly where you need to go to get the house - imagine doing all that waiting only to find out that you were in the wrong place and people who only arrived got in ahead of you. Ask the auctioneer/builder exactly where to go and maybe re-verify this while you're waiting in the queue also just to be sure. Take a camping chair, brolly, warm clothes, food. Make sure you have phone battery life at all times too for updates to the situation. I know all this sounds crazy but that's what people are doing.

haha a picture of my queue that was a fun night, nice mild and couple of beers was had.

we had a list of names and numbers of where people in the queue, the latest phase they moved it indoors to a hotel.

The list up above pretty much covers it all

Bandana boy

irlrobins wrote: »

Wrap up warm, especially feet, hands and head.

Very much especially feet
We spent 5 or so hours standing around and my feet were like blocks of ice , Double sock and a good boot a necessity

Grawns

Headed off today with all my gear and it turned out the queue started last night and they were sensibly handing out tickets and sending people home.

carltonleon

So what number in the queue are you ?

REFLINE1

carltonleon wrote: »

So what number in the queue are you ?

whats the development?

Grawns

Sorry guys. I'm not going to say the number or the place

baldbear

Hardly Silverbanks?

ILikeBoats

Two new phases in developments in my town going head to head by both going on sale at 10am on Saturday morning. Will be interesting to see if there's queues!

Samuel T. Cogley

Sorry if this is OT but someone asked at work and it got me curious - what ever happened to buying off the plans?

ThisRegard

Still happens, there's plenty of threads around talking about people picking their homes from plans.

Samuel T. Cogley

ThisRegard wrote: »

Still happens, there's plenty of threads around talking about people picking their homes from plans.

Does that avoid all this queuing or is that something different?

ThisRegard

Most people you'll see queuing are queuing to buy a property off a site plan. There'll either be showhouses or previous phases completed, but they're not queuing to buy a house that's ready to go or even has had it's construction started.

dmcg90

Got a new build in an existing development out in North Dublin.

I arrived 30 minutes after the viewings started and still managed to get one (only 2 had gone at that point).

I can't actually believe people are queuing and I would bet a good amount that there's developers paying people to queue to drum up demand (and justify higher prices).

Bandana boy

dmcg90 wrote: »

I would bet a good amount that there's developers paying people to queue to drum up demand (and justify higher prices).

lol
You reckon there is a need to falsely inflate demand for housing in Dublin in 2017 , have you been living under a rock or something for the last 3 years !!