Andrew Wade writes:
“No boom nothing to see here! Look at that price jump…”
Plenty of natural light.
One angry owner.
[Mount Rivers, Newport, Co Tipperary, top]
What Goes Up writes:
“I put a €500K bid on a gorgeous property in 2012. It was on for €650K – the ads for it are still on Daft and MyHome – but I thought my offer was enough, as the running and upkeep costs would be a mortgage on their own
I was told there was a higher offer – and I said €500K was my maximum bid but that I was still interested and to let me know if the higher offer fell through.
It went “Sale Agreed” in December 2012 but hadn’t appeared on the Property Price Register until this week...when It sold for €375K!
Not only is this VERY depressing but it also means that the banks will end up with larger losses because of deals like this, which means we all will have to bail them out again.
We bought and sold houses when we lived in London. All very straight forward and transparent. We assumed that the Irish situation would be the same when we moved back. We were wrong. And so I shall be emigrating (again), as I see no reason to pay for someone else to buy a house I don’t get to live in.”
“The property showed up last week on the property price register for €375k, but this is because the lands were sold as a separate part of the sale to the same party. The sale of the entire property including the lands exceeded €500,000. We will be following up with the bidder directly to explain this to him.”
Andrew Smyth, Public relations, Savills [Estate Agents] Ireland
Further to the Construction Industry Federation’s call for an increase in house prices.
John Gallen writes:
“I contacted them [CIF] via Twitter. I wanted to know why they saw it that “house prices need to increase in order for the building of residential properties to become more cost effective”.
The basic response is that although land has come down since the boom years in varying degrees other costs have not. I asked for detail of these other costs. I got this breakdown of how much to build a typical 3 Bed Semi-d. It comes in at €197k just to build it. Excluding VAT.”
Earlier: The Only Way Is Up
Fitch’s London-based mortgage analyst Sanja Paic said recent price rises in Dublin were “unsustainable” in the long term because they are driven by a lack of supply that will prove temporary.
The number of homes for sale in Dublin is around 24pc below the level seen even in 2012, she said. The number of homes being built is still a fraction of the peak, she added.
One factor anticipated to put downward pressure on prices will be a sharp rise in the number of homes being repossessed, she said in a conference call with investors, analysts and the media yesterday.
Fitch said one in five houses where mortgages had been in arrears for three months or more was likely to be repossessed…as many as 26,000 properties, including buy-to-let properties and actual family homes, could be seized by the banks.
More than 26,000 Irish homes to be repossessed – rating agency Fitch (Donal O’Donovan, Independent.ie)
Bring it on.
Prime Time’s Robert Short is going to look at property prices in Dublin which have risen by 12% in the last year, while outside the capital have risen 2.5%.
He’s also going to look at the disparity between prices in south Dublin versus north Dublin.
Ahead of tonight’s show on RTE 1 at 9.35pm, he writes:
“I turned up at a recent viewing of a standard, three bed semi in Booterstown in south county Dublin. It’s been on the market for three weeks with a price tag of €550,000. And in property-speak, it would ‘benefit from modernisation’. According to the estate agent, there are already three bidders and the bidding is up to €535,000.”
“There were about a dozen parties at the viewing. All had stories of being outbid. There was a certain nervousness about what seemed to be happening in the south county Dublin property market; a sense that bargains from a depressed market were fast slipping away.”
“Is south county Dublin caught in a 2006 time warp? Well not really, if you consider the outer constellation of craziness that was 2006. Prices are still half, or just under half of what they were then.”
“Here’s what the statistics say: The annual increase in Dublin property prices in the year to September was just over 12%, according to the CSO. Prices in the rest of Ireland are still falling, albeit at a slower rate of 2.5%. It’s clear that prices in Dublin have taken off and left the rest of the country behind.”
“And within Dublin, it’s even more striking that asking prices in south county Dublin were up 12.7% while in North County Dublin they were up just 1.4%. According to the Daft.ie House Price Report, the average asking price in the north of the county was €210,765 while the average asking price in the south of the county was €370,650. It’s a remarkable disparity.”
“TCD economist Ronan Lyons, who analyses the Daft.ie data believes the spike in prices is a once-off phenomenon. He thinks it’s principally based on the pent up demand from a generation which through luck or circumstance did not purchase during the boom. They’re forming their own households now, starting families.”
“They are also getting squeezed in the rental market, which has gone up an average 8% in the capital.”
“And there’s not a sufficient supply of houses in the areas in which they want to live. Negative equity has restricted the supply of family-sized homes to estate sales and, to a lesser extent, bank sales.”
“Few new homes are being built.”
Banks moved on over 50 Mayo property-owners who were before last week’s sitting of the County Registrar’s Court about difficulties relating to mortgages and other loans.
An unprecedented 56 cases – the majority of which were in the early stages of litigation involving Civil Bills for repossession – were processed by Mr Fintan Murphy, the County Registrar. This time last year there were only about two such cases before the same court.
One young couple with a small baby told the court that they were served with notice of the proceedings even though they were just tenants of a property …Another couple before the court explained that they would not be able to maintain their mortgage because their marriage had broken down.
(Sasko Lazarov/Photocall Ireland)
Off the market.
I received this email [below] yesterday [from an estate agent] in relation to a property I was interested in. I’ve changed the names etc.. to protect the ludicrous.
Subject to contract/contract denied
In order to bring the sale of the above property to a conclusion, it has been decided to ask all interested parties to submit their final and highest offer in writing by this Friday 11th October at 5 o’clock.
If you are interested in submitting a proposal, please include the following information;
Your name, address & telephone number;
Your Solicitors details;
Status of Finance and a copy of same (e.g. a copy of loan offer if purchasing with a mortgage or if purchasing without recourse to financing, a copy of a bank statement/letter from a financial institution confirming sufficient funds). If the offer is subject to anything. Ideally, all surveys should be completed before making a final offer.
All proposals which will be subject to contract and title, should be e-mailed to all of the following e- mail adresses;XXXXX.ie XXXX.ie &XXXXX.ie
Upon receipt of offers, all will be presented to the vendors for their consideration. Please note that the vendors are not obliged to accept the highest, or any, offer. Offers made by interested parties will not be disclosed to any other bidder.
There appears to be 7 parties still interested in the property. The highest bid is currently €XXX,000. Lastly, to avoid two parties offering the same amount, please offer an odd amount such as €xxx,259.67.
If you have any queries or questions, please contact either myself or my colleague XXXXXX on 087XXXXX. In the meantime, please acknowledge safe receipt of this email.
Kind Regards xxxxxxxxx