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Apartments price drop 3rd phrase

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    #32
    DJDC
    Closed Accounts Posts: 365 ✭✭DJDC


    tightening of credit has no bearing on average wages whatsoever,

    Wrong.


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    #33
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,279 Mod ✭✭✭✭The_Conductor


    DJDC wrote: »
    Wrong.

    In practice- average wages in the private sector- have not reflected the tightening of credit/working capital for businesses. When businesses find the going tough- they tend to lay off staff, rather than reducing wages. IBEC have records of wage and employment trends for their member companies- its counterintuitively, in the majority of cases, salaries are not being cut (jobs are though).


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    #34
    Guell72
    Closed Accounts Posts: 169 ✭✭Guell72


    Theboinkmaster wrote: »
    I stand by my comments. Yes my post didn't have all the support/references it maybe should have however i typed it in a rush and was just trying to help the OP not to make a huge mistake.

    Where do I say it's worth €20k?! If you read my post properly I said that if the developer could not sell them and went into liquidation and the bank sold them they could IMO go for €20k in a fire sale. Due to the type of development and location. €20k in a fire sale when there are over 100,000 empty properties in Ireland (and rising) in a ghost estate in Bettystown could EASILY happen.

    OP can I suggest you do some more research here and over at www.thepropertypin.com. All advice here seems to suggest not to buy.

    Best of luck

    If they are 20K i'll have 5 of them then :D ... for cash.

    Where are you getting your ideas from.
    You should be on stage.


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    #35
    NewDirection
    Registered Users Posts: 223 ✭✭NewDirection


    Guell72 wrote: »
    If they are 20K i'll have 5 of them then :D ... for cash.

    Where are you getting your ideas from.
    You should be on stage.
    You can chalk me down for a couple too! 20K is a mental prediction.


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    #36
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,279 Mod ✭✭✭✭The_Conductor


    The international norm is an average 3 bed dwelling costing 3.2 times the gross average wage for that particular country (20 year OECD averages). On this basis- a 3 bed apartment would be around the 110-120 mark, a 2 bed probably around the 75-80 mark- and internationally there simply is not a market for 1 beds, in general.......


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    #37
    North_West_Art
    Closed Accounts Posts: 1,103 ✭✭✭North_West_Art


    Why not rent one of them for 6 months... and if you can see yourself living there long term (ie. however long it will take you to repay your salary x 4), and are happy with the overall living conditions and quality of building, which is most important, then decide on your next move.... offer 40k lower than what they are being advertised for.
    These apartments were 140k last year, now their going for 60k... similar location, on the coast etc.
    http://www.myhome.ie/residential/donegal/apartment-for-sale-in-bundoran?cmpid=ppc_Apartments_for_sale_Donegal&gclid=CKncvdivjaACFUIA4wod1wi6eA


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    #38
    connundrum
    Registered Users Posts: 5,563 ✭✭✭connundrum


    North_West_Art wrote: »
    similar location.

    By similar location you mean on the complete opposite side of the country of course :)

    I personally would price a 2 apartment outside of a main city centre at between 50k - 90k max (Similar to the Bundoran link). There is absolutely zero demand for such developments at the moment, and this is all the apartments should have retailed at in the first place IMO.

    There are 2 bed apartments within the M50 boundary (Navan Road/St Margarets/Coolock) which were origionally priced at approx 270k - 310k and are now usually priced at 150k. I expect to see these prices to fall below the 100k mark before September this year.

    Further to that, I would strongly discourage anyone from buying any apartment from a new development due to the possibility that the Mgt Co will either not be set up correctly, that new owners will fail to pay Mgt fees, or that the Developer will not hand over the common areas for years as he will not be able to fully sell out the development.

    You'd be asking for trouble in buying an apartment.


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    #39
    Jean_kelly
    Closed Accounts Posts: 7 ✭Jean_kelly


    Hi.
    Just some relevant advice from a property professional. I can't speak to the economic situation, property value in the future or any of the other supposition being forwarded to you.
    1. If you plan on living in the home - the value / negative equity you are going to enter into is marginal - location, work travel times, quality of life all come into play on a personal level when living in Meath as you know.
    2. The genuine concerns I would highlight are the legal position your deposit is in while the 3rd phase is under completion.
    3. The comunal / up keep fee's and the level of service agreement must be read very carefully in the eventuality that you and a handful of other owners are the sum total of income the property management co. have to fund the upkeep of the buildings and surrounding area of the development. - A nice grey area exists between the finishing of these comunal areas and the resposibility of the builder / developer - property management co. that in a stagnated market can only cause problems for the owners of the units.
    4. A good solicitor / with no conflicts of interest is essential ( i can relay a story of a solicitor ( no names sorry ! ) that purchased at phase 1 prices in a development and completly mistreated clients of mine because they were buying their unit at close on half the price the solicitor paid only 10 months earlier in the same development! )
    5. Finally - my own area of expertise - surveying / snag lists, don't cheap out, prices for inspections have come down (as have mine to try and give some discount!) - but I can't emphasize the importance of a professional inspection of your home, the builders - most of them are cutting corners and leaving as much to chance as they possibly can due to to the heavy losses they are experincing at the final sale price - most will leave as much damaged, faulty and poor work that they can get away with - hoping that one of 2 things happens,
    (a) - an unqualified / tradesperson offering cheap snag lists does the inspection and misses most issues that don't jump out at them, (or someone they know - or wants to return to work for the builder, so will butter them up with a short and simple list of problems to fix)
    (b) - the homeowner makes the fatal error of not having an independent inspector carry out an inspection to save a couple of hundred euro.
    3 out of 4 of every properties inspected by us - the builder has to bite the bullet when he gets a snag list from our professional snag inspector - and this list will contain all the issues he didn't want to have to deal with and hopefully save his ever shrinking margin from further labour and replacement material costs. - They can't afford to lose the sale so at least the level of attention has improved from 2 /3 years ago - But they will try to recoup some of the price differential at your expense.
    Homebond / premier - is a structural warranty and will have very little to offer you in the majority problems found in a home
    * with exception to the earilier posters valid point about the length of validity / cover in relation to your deposit *
    The prices are going down but you should still expect quality workmanship / industry standard practice and a safe and comfortable home that is built within our regulations.
    I hope this advice is useful, it may do little to alieviate your other concerns - but at least it removes some further pitfalls you may find purchasing in these difficult times. -
    J. Kelly..:rolleyes:


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