Overpriced Property

MorningStar

I have been keeping an eye on the property market as many people do and in certain areas I have a particular interest. I have noticed some of the most ludicrious prices ever.

In the US I know some states make the real estate agents publish the prices properties go for to stop price bubbles and dishonest estate agents.

Here is my point
This house was sold for about €317k (asking price at time) about 3-4 months ago. IT has been redone but part of that has included reducing the house to a two bed to put a bathroom upstairs. Now it is at €345K (Estate agents said they have an offer of €350k). No way has that much money been but into the house
http://www1.myhome.ie/search/property.asp?id=231629&p=6&rt=search&searchlist=

Meanwhile further down in the same area selling at €295k

http://www1.myhome.ie/search/property.asp?id=233787&p=3&rt=search&searchlist=

A €50k difference! I know some people don't like the hassle but this seems a bit much. Anybody else notice some crazy prices?

Stark

Looking at rent prices on daft.ie, I have notice up to €200 pm differences. Often the more expensive rooms can be single rather than double and in small run-down houses.

Caveat emptor

Victor

There may be quite a few subtle points like garden size, proximity to services (the one on the amin road is much closer to bus stops, shops, church, etc.)

Of course the seller needs to make back the stamp duty. No willing seller is going to accept less than they have paid.

LegacyUser

MorningStar wrote:

No way has that much money been but into the house

To me the house looks like a lot of money has been put into it. Sure a decent kitchen will set you back AT LEAST 5 grand. Is a brand new bathroom also?? That fireplace? Looks great! I think a lot of thought went into the refurb of that house and personally, I'd pay the extra what (if any) above and beyond than take a dump and fork out 30 grand to do it up.

I'd prefer to skip having builders and plumbers trapsing all over my house, and having to use my annual leave waiting for skip hire companies etc at all costs. What would you save doing up the house yourself?

Bluehair

Prices in Ireland have long been skewed by the bizarre market we've been operating in.

While normally considerations such as promity to services, gardens, etc etc. are high on the list the only question these days appears to be 'Can I afford it?' and if not 'Can I jiggle things around until I can afford it'.

Supply/demand are of course the overriding factors determining the ultimate sale price of a house but I also don't see a €50k difference in the above properties.

No one wants to accept less than they've paid but I know of two people personally who've done just that recently and one other who took the house off the market due to under-bids.

I'm sensing a subtle change in the market and having just sold myself am not in a hurry to get back in again.

MorningStar

bubby wrote:

To me the house looks like a lot of money has been put into it. Sure a decent kitchen will set you back AT LEAST 5 grand. Is a brand new bathroom also?? That fireplace? Looks great! I think a lot of thought went into the refurb of that house and personally, I'd pay the extra what (if any) above and beyond than take a dump and fork out 30 grand to do it up.

I'd prefer to skip having builders and plumbers trapsing all over my house, and having to use my annual leave waiting for skip hire companies etc at all costs. What would you save doing up the house yourself?

A decent kitachen is not €5k and that kitchen is pretty small. A brand new bathroom can cost a fortune but that bathroom isn't the expnsive type probably no more than €2k. THe fireplace is not my taste but it also is not that expensive and was purcahsed around the corner from the house.
I guess some people are willing to pay the extra but €30k for the pleasure has got to be at least half a years salary for somebody buying at this level. Nice to have the money but not sensible spending.

lomb

MorningStar wrote:

A decent kitachen is not €5k and that kitchen is pretty small. A brand new bathroom can cost a fortune but that bathroom isn't the expnsive type probably no more than €2k. THe fireplace is not my taste but it also is not that expensive and was purcahsed around the corner from the house.
I guess some people are willing to pay the extra but €30k for the pleasure has got to be at least half a years salary for somebody buying at this level. Nice to have the money but not sensible spending.

just because they are asking for it doesnt mean they will get it. buyers arent fools when equivelant properties are available for less. there is alot of competition believe it or not still.

MorningStar

lomb wrote:

just because they are asking for it doesnt mean they will get it. buyers arent fools when equivelant properties are available for less. there is alot of competition believe it or not still.

I know that but as I mentioned it looks like they are getting it with an offer of €350k already. That is the whole reason I posted it up because I could see why somebody would think the house was worth so much more over the second property which is practically on the same road and closer to the DART station a €55k difference!

Civilian_Target

The deviations in house prices are normal. Last time I went looking for rental accomodation - most of the nicer places were in the bottom end of the scale. A number of people tried to charge me €100 a week for a smelly hole, when often for €350 a month, €100pm less, you could get a substantially nicer place on the same road, and probably with a nicer landlord too. Have to be quick though - the nice stuff gets cleaned up quickly but the dross hangs around forever.

MorningStar

Renting and purchasing are pretty different. We are talking about at the very least a years salary. I find it hard to belive people can afford it at this level. In saying that you could be right and it appears somebody thinks it is worth it.

Merrion

Prices are so high in part because interest rates are so low - for example a couple with no kids and a combined income of €75k ought to be able to spare about enough for a €350 - €400k mortgage...

Dutchboy

I was checking sharing accomodation in dublin on daft earlier and i saw a single room in sandymount for 254e per month!sounds too good to be true i know, but is it possible to get accomodation that won't have me restricting my nights out to pay it?
Is daft the only decent simple way to find accomodation?
im in limerick so dont have access to the dublin papers...

MorningStar

Merrion wrote:

Prices are so high in part because interest rates are so low - for example a couple with no kids and a combined income of €75k ought to be able to spare about enough for a €350 - €400k mortgage...

Fair enough but why would they pay €350k for a property that has maybe €15k worth of work done it when there is another house down the road for €295k?

I am not crazy on doing DIY but I woun't spend a years worth of salary to avoid it. Plus you could still afford to get the work done for that kind of money. Probably get better spec stuff too with €50k

Victor

Dutchboy wrote:

I was checking sharing accomodation in dublin on daft earlier and i saw a single room in sandymount for 254e per month!sounds too good to be true i know, but is it possible to get accomodation that won't have me restricting my nights out to pay it?

That sounds like it was per person in a shared room, i.e. €508 (=£400) for the room.

Is daft the only decent simple way to find accomodation?
im in limerick so dont have access to the dublin papers...

www.loadza.com has all the Evening Herald ad.s