Affordable housing over priced

Damos Girl

I got got offer an affordable home 2 bed apt and everything was going smoothly with the mortgage until my banks vaulers said that my property was complety over vauled at €230 by the Dublin Corpo. My banks valuers valued the property €190k which is €40K under what the DCC say they are worth so this is completly stopping my mortgage process. Iam waiting to hear back from the DCC to see what they say.

Has anyone who is currently or recent gone thru this having this problem???

I am going thru EBS.

Thanks,

The_Conductor

Unfortunately its increasingly common. Mortgage providors are being a lot more conservative in their valuations, and are routinely reducing independent valuations by 10-15% to reflect current market trends.

With DCC- its a case of they revalue the properties (they have hundreds), or they do not sell. Its not the case that the 'Affordable Housing' price is wrong- the AH price is now 1/5th above the open market selling price........

Ps- Bank of Ireland appear to be the most aggressive of the banks at writing down residential property valuations......

Damos Girl

smccarrick wrote: »

Unfortunately its increasingly common. Mortgage providors are being a lot more conservative in their valuations, and are routinely reducing independent valuations by 10-15% to reflect current market trends.

With DCC- its a case of they revalue the properties (they have hundreds), or they do not sell. Its not the case that the 'Affordable Housing' price is wrong- the AH price is now 1/5th above the open market selling price........

Ps- Bank of Ireland appear to be the most aggressive of the banks at writing down residential property valuations......

Thanks, I just hope that the DCC can revaulate their properties, Ive had a few other offers on the AH as they're doing Open views now which are coming in left right and centre to all the AH list now as opposed to the Bingo type draw. Surely it has to be the case that if this is becoming a more popular occurance they will need to do something??? And if I dont choose this particular property and get another AH property whos to say I wont run into the same problem again?? I cant be the only person who has come up against this stumbling block?

jimmyskank

I was offered an AH by a different Co Co in January, and by the time the contracts etc were ready to be signed (April), the Co Co re-valued the property to bring it in line with the falling house prices.

DCC should do the same, and I have heard of people offering DCC amounts below the asking prices on the AH scheme and negotiating a more realistic price!!

Damos Girl

Lets hope they will, almost everything is set in place. If they dont sell it to me without reducing the price I really dont think they'd be able to shift it at all. Its not that I ve a problem with re-payments or securing the mortgage its just by Bank arent happy to go with it!! Hopefully it will go in my favour:)

Dub.

Doesn't all of this expose the folly in buying property at the moment?

jimmyskank

I dont have a problem with recently buying my property as I have been waiting for houses which are suitable in my area for a long time now, and I have no intentions of moving in the next 10 years anyway. I am happy with the price, the mortgage is very manageable and I am in an area I have always wanted to live.

I would however have a major problem with investing in property at the moment, or buying a property to rent out...:)

SkepticOne

Does anyone have any figures for how much money the local authorities spend on these apartments that then can't be sold even after the discount is applied?

bangersandmash

Damos Girl wrote: »

Lets hope they will, almost everything is set in place. If they dont sell it to me without reducing the price I really dont think they'd be able to shift it at all. Its not that I ve a problem with re-payments or securing the mortgage its just by Bank arent happy to go with it!! Hopefully it will go in my favour:)

I know it doesn't seem like it, but the bank are actually doing you a favour here. They're basically telling you that you're paying at least €40k too much for the apartment. If this is as widespread as it sounds, then AH prices will inevitably have to drop a good deal further to clear the backlog. You may like the property and have no problem with the repayments, but a smaller mortgage for you is obviously a good thing!

super_furry

I know someone who's in the process of buying a 2 bedroom ground-floor apartment in Stocking Wood (which is basically at the start of the Dublin mountains) for €240,000 on the Affordable Housing scheme. The area is bleak, desolate, has zero ammenities and is surrounded by half-finished building sites. I doubt that the real market value of the property is €190,000 and it's just another case of the guilable being suckered into bailing out developers.

Dirk Gently

i was disappointed with the affordable housing alright. much better value on the open market, especially when you consider the terms attached. Give it another year or two of saving and you'll get a better place, cheaper and have a bigger deposit.

Why buy an affordable apartment for 250 - 300k + maintenance fees when you can wait a little while longer and get a house instead for 150 - 200k on the open market. Already houses in that price range now listed outside of the city.

oceanclub

The fact that the most basic "affordable" housing - that is, housing that one presumes caters to those on lower than average wages - costs 6 times the average industrial wage - should show how messed up the whole concept it.

P.

ntlbell

Damos Girl wrote: »

Lets hope they will, almost everything is set in place. If they dont sell it to me without reducing the price I really dont think they'd be able to shift it at all. Its not that I ve a problem with re-payments or securing the mortgage its just by Bank arent happy to go with it!! Hopefully it will go in my favour:)

if it's only worth 190k why don't you go and buy something similar on the open market?

The_Conductor

ntlbell wrote: »

if it's only worth 190k why don't you go and buy something similar on the open market?

Thats the mortgage valuation- reality hasn't set in for most sellers though- so even if this is an upper limit on what a financial institution is willing to value it at- doesn't mean its available at this level (yet) on the open market....... It will be though........

ntlbell

smccarrick wrote: »

Thats the mortgage valuation- reality hasn't set in for most sellers though- so even if this is an upper limit on what a financial institution is willing to value it at- doesn't mean its available at this level (yet) on the open market....... It will be though........

Right, I forgot to say "wait"