Crazy Irish

IanCurtis

Just sold my share of an apartment on northside to my ex for a value of €330k

The thing is worth less than €280k at best.

Another fella I know has, wait for it, a 1 bed in a suburb very far away (!) which he can neither rent nor sell....

He has moved in with his gf but still has this ridiculous folly hanging over him, €1,000+ a month.

When will the Irish learn?

Cantab.

IanCurtis wrote: »

Another fella I know has, wait for it, a 1 bed in Ongar which he can neither rent nor sell....

Can't sell or won't sell?

The_Conductor

Cantab. wrote: »

Can't sell or won't sell?

I imagine a 1 bed in Ongar is pretty much unsaleable- period. I'd love to know what he was thinking when he bought it......

How Strange

smccarrick wrote: »

I imagine a 1 bed in Ongar is pretty much unsaleable- period. I'd love to know what he was thinking when he bought it......

I know someone who has a house for sale in Ongar. It's been on the market for well over a year. I don't know the specifics about asking price etc but I'd guess that he is probably refusing to budge on the asking price and thinks he can still make a hefty profit on the €270k he originally paid for it.

ionapaul

Almost every property in the country can be sold - nothing is 'unsellable' - even a 1-bed in Ongar, hell, even a 1-bed in Carrick-on-Shannon, if the price is right they will find a buyer. If the 1-bed in Ongar could be bought for a mid-five figure sum, even some of us bears would pony up! I honestly probably wouldn't offer even a five figure sum for a 1-bed in Carrick-on-Shannon though...

gamer

he can,t afford to sell it ,negative equity, ie new houses dublin 15 going 4 270k ,so a 1bed is prbly worth maybe 2ook approx, but a 1 bed even a single mother can only get rent allowance on a 2bed . I dont understand why he cant rent it out.I cant believe a 1bed in ongar cannot be sold
.MAybe he,s in an area with services charges on the houses.Which makes it hard 2attract a buyer in the present falling market.

gurramok

If it was 100k or maybe 130max, it would be an attractive price to singletons assuming it was large enough as a selling point and the purchaser wouldnt have to fight for the parking space when coming home from work(they need a car out there) and the service charge not high.

1 beds are not for couples or families, and based on location in middle of nowhere in the Dublin outskirts, a 100k price or thereabouts is a fair price. It may sound harsh to people stuck in negaitive equity but it's the reality

Cantab.

gamer wrote: »

he can,t afford to sell it ,negative equity, ie new houses dublin 15 going 4 270k ,so a 1bed is prbly worth maybe 2ook approx, but a 1 bed even a single mother can only get rent allowance on a 2bed . I dont understand why he cant rent it out.I cant believe a 1bed in ongar cannot be sold
.MAybe he,s in an area with services charges on the houses.Which makes it hard 2attract a buyer in the present falling market.

Can't afford not to sell it?

The_Conductor

Its moot really- stuff isn't moving. If you lower the prices, all it seems to do is establish a new lowering of the ceiling that everyone else has to follow, but property doesn't seem to shift at all.

Supercell

smccarrick wrote: »

Its moot really- stuff isn't moving. If you lower the prices, all it seems to do is establish a new lowering of the ceiling that everyone else has to follow, but property doesn't seem to shift at all.

Its not shifting because most people still cannot contemplate the price the market is willing to pay.
Eventually expectations will meet demand - today's outrageous bid is next years take your arm off one.
Its just a matter of time.
One beds in Ongar probably wont sell for much more than 100k in a few years time. Incomprehensible to many now, but I'll bet in a few years people won't think that price crazy at all.

Thing is, you could probably stay a little ahead of the curve and flog a one bed there now for 130-140 hard as that might be to swallow as market expectations are probably still not at bottom yet imho.

Most won't though and will end up eventually selling for 100k or less and ruing the missed opportunity, the hardest thing to know is when to realise the loss and get outta dodge.

SimpleSam06

Supercell wrote: »

but I'll bet in a few years people won't think that price crazy at all.

Indeed, if you had told someone in 2000 that by 2006 their property would have gone from 210k to 630k in price, they would have laughed you out of it. Well, its on the way back down to 210k, and nobody is laughing.

Tigger

i disagree

Duckjob

SimpleSam06 wrote: »

Indeed, if you had told someone in 2000 that by 2006 their property would have gone from 210k to 630k in price, they would have laughed you out of it. Well, its on the way back down to 210k, and nobody is laughing.

Except the developers. They've got friends in high places.

Money Shot

Tigger wrote: »

i disagree

elaborate - Disagree with what ??

Supercell

Tigger seems to believe that "worth" always goes up, never down.
Funny how the market disagree's.

If we had price transparency like the UK or USA we probably would be far closer to the end of this as prices would have dropped harder and been nearer the bottom by now.

As it stands, this thing is going to be a death by 1000 cuts here as the Builders Party (FF) takes increasingly crazy steps to to catch a falling knife.

ParkRunner

I just wish they would hurry up and set prices at a realistic level. The banks have given the developers a holiday from paying back loans including interest but they are going to have to get tough sometime soon, especially the foreign banks!

gurramok

EF wrote: »

I just wish they would hurry up and set prices at a realistic level. The banks have given the developers a holiday from paying back loans including interest but they are going to have to get tough sometime soon, especially the foreign banks!

Don't worry, they will defo next year. Irish banks will have major domestic bad debts from developers arising next year to be fully declared and that's the domestic timebomb coming.(you know that reported €15bn+ figure)

dazberry

But in the end will it be all blamed on the global credit crunch (because we're different here / new paradigm :rolleyes:) and nothing will be learned - and in 15/20 years the crazy Irish will be at it again

D.

ParkRunner

gurramok wrote: »

Don't worry, they will defo next year. Irish banks will have major domestic bad debts from developers arising next year to be fully declared and that's the domestic timebomb coming.(you know that reported €15bn+ figure)

Surely the banks know this too so why not get in there now and get their hands on whatever assets they can before they do go bust? A good chunk of the empty houses can be sold off at realistic prices to help the banks get back as much as is possible.

A niche will arise then with a number of developers going bust and new businesses popping up. There must be thousands and thousands of first time buyers waiting to fill the empty houses out there but just cant afford to at current prices. Demand would probably be there too for new houses again in the not too distant future which the new developers (creating much needed employment in the meantime) could benefit from..Just a theory..but the banks would call in the loans in most other industries and a similar situation would arise of out with the old and new businesses taking their places

Senna

EF wrote: »

Surely the banks know this too so why not get in there now and get their hands on whatever assets they can before they do go bust? A good chunk of the empty houses can be sold off at realistic prices to help the banks get back as much as is possible.

Are most of these developers limited companies, if the banks demand money, cant they just declare bankruphy and the bank gets the value of the house (less now) and nothing else. Do the banks just want them to try and make whatever payments they can and will only go after the money when the bank is threatened? so state guarantee means more breathing time for developers?

blah

Well, the banks get the houses, which they then sell of for whatever they can get for them. They don't hang around waiting for the "value" to go up, or offer "fitted kitches and appliances" instead of dropping the price, or try and sell the place with brochures featuring scantily clad models. They'll just sell to the highest bidder.

ParkRunner

At last it has started!

http://www.irishtimes.com/newspaper/frontpage/2008/1022/1224625076832.html