What would you offer?

stepbar

*I'm more interested in the differing opinions in price more than anything else, however I'm still doing this for selfish reasons

Right, this is the property -

http://www.myhome.ie/residential/search/brochure/3-gandon-close-harolds-cross-dublin-co&-city/UAWNS410836

Management fees are 1.2k p.a.

I had a look at it this evening and was "thinking" of making an offer. My offer is based on a rent of ........ actually this is where I'm having difficulty. Effectively this place is a converted studio and IMO wouldn't rent for any more than 600eur. Based on this ((600*12)-1.2k)*16 = 96k. How in ever I think that's a bit much for what is in effect a converted studio. Anyhow I was thinking that 80k would be plenty. Of course, I wouldn't have long term plans of staying there hence I'm pricing on the negative.

Thoughts?

Oliver1985

It actully looks nice!!! Would you not be better holding out for a 2 bed?

irlrobins

stepbar wrote:

Anyhow I was thinking that 80k would be plenty.
Thoughts?

I'm thinking the EA wouldn't even bother ringing you back.

Gurgle

stepbar wrote: »

wouldn't rent for any more than 600eur. Based on this ((600*12)-1.2k)*16 = 96k...

Thoughts?

I think the days when you could buy property with mortgage repayments less than the rental income are long gone.

stepbar

Gurgle wrote: »

I think the days when you could buy property with mortgage repayments less than the rental income are long gone.

I'm using rental yields as a means to value properties, in the absence of any other means of doing so bar pluck a figure out of the sky.

stepbar

irlrobins wrote: »

I'm thinking the EA wouldn't even bother ringing you back.

Thats not the question I asked.

kenbrady

stepbar wrote: »

*I'm more interested in the differing opinions in price more than anything else, however I'm still doing this for selfish reasons

Right, this is the property -

http://www.myhome.ie/residential/search/brochure/3-gandon-close-harolds-cross-dublin-co&-city/UAWNS410836

Management fees are 1.2k p.a.

I had a look at it this evening and was "thinking" of making an offer. My offer is based on a rent of ........ actually this is where I'm having difficulty. Effectively this place is a converted studio and IMO wouldn't rent for any more than 600eur. Based on this ((600*12)-1.2k)*16 = 96k. How in ever I think that's a bit much for what is in effect a converted studio. Anyhow I was thinking that 80k would be plenty. Of course, I wouldn't have long term plans of staying there hence I'm pricing on the negative.

Thoughts?

Most property in Ireland sells for what sellers think it's worth rather than what people are prepared to pay for it. Lots of vendors won't sell because they think there property is worth more than what the market is willing to pay.
If you want it, you might get it for 150k, I don't think anyone could live in a 330sqf apartment for a long period of time.

Gurgle

kenbrady wrote: »

Most property in Ireland sells for what sellers think it's worth rather than what people are prepared to pay for it.

http://cdn0.knowyourmeme.com/i/1582/original/picard-facepalm.jpg

marmalade3

Don't do it ... I'd hate living in it, its too small even for one person. Plus there are sooooooooo many 1 beds, vacant, in Dublin that you'll be up against bigger apartments for less rent in better locations.

irlrobins

stepbar wrote: »

Thats not the question I asked.

What I was trying to say was that your offer is too low and more than likely won't be considered. You can argue that the seller is overpricing but at the end of the day, the seller will only sell at a price he's happy with. I doubt that price is 45% of what he's asking.

AARRRGH

They want €180k for a 1 bed?

stepbar wrote:

I wouldn't have long term plans of staying there

I agree with you so, €80k should be the most you pay for it.

They won't sell it for that though, of course.

Oliver1985

AARRRGH wrote: »

They want €180k for a 1 bed?




I agree with you so, €80k should be the most you pay for it.

They won't sell it for that though, of course.

AARRRGH I think you think your gonna be able to buy a house and still have change out of a 20euro note

stepbar

I know that but the question is what would you offer? Never mind about whether it will be accepted or not; or at the price i've stated.

kenbrady

Gurgle wrote: »

http://cdn0.knowyourmeme.com/i/1582/original/picard-facepalm.jpg

Seller wants 180k
Buyer OP want to pay 80k
Seller will not sell for this.
So either buyer ups his price or the property remains unsold.

Sellers are still dictating the price of property, buyer will eventually pay more than they want to and what they think the house is worth or else they don't get to buy.

Gurgle

kenbrady wrote: »

Seller wants 180k
Buyer OP want to pay 80k
Seller will not sell for this.
So either buyer ups his price or the property remains unsold.

Sellers are still dictating the price of property, buyer will eventually pay more than they want to and what they think the house is worth or else they don't get to buy.

How is this different for housing than mars bars or jet-skis?

If something costs more than you think its worth, don't buy it. If you're selling something and you're offered less than you think its worth, don't sell it.

warrenaldo

stepbar wrote: »

I know but that but the question is what would you offer? Never mind about whether it will be accepted or not or the price i've stated.

When people make an offer they take into consideration what is likely to be accepted. Otherwise they would offer next to nothing.

stepbar

warrenaldo wrote: »

When people make an offer they take into consideration what is likely to be accepted. Otherwise they would offer next to nothing.

And so what???

irlrobins

I'm failing to see the point of this thread to be honest.

johndaman66

Stepbar, I'd offer 80k max at a push and certainly wouldn't think its worth anymore than this. No doubt it would not be accepted but thats what I'd offer. I've never seen the appeal of an apartment myself. They have always seemed makeshift to me and not really a residence that is your own private place or something. I'm sure you may view them differently though. I think that particular place looks like a prison from the outside anyway and maybe even the inside for that matter (not sure what prisons look like on the inside yeat anyway;)).

You should also factor in the soon to be implemented annual property tax on top of the 1.2k per annum management fees I think.

stepbar

Thanks, thats the sort of response i was looking for.

Tech3

kenbrady wrote: »

Most property in Ireland sells for what sellers think it's worth rather than what people are prepared to pay for it. Lots of vendors won't sell because they think there property is worth more than what the market is willing to pay.
If you want it, you might get it for 150k, I don't think anyone could live in a 330sqf apartment for a long period of time.

Stupidest comment of the week so far.

Ponster

kenbrady wrote: »

I don't think anyone could live in a 330sqf apartment for a long period of time.

Been living in a 300sqf with my wife for about 5 years now. If you haven't really known anything anything bigger (since I was 18 and left home) then you get used to it very quickly.

DJDC

Sellers are still dictating the price of property, buyer will eventually pay more than they want to and what they think the house is worth or else they don't get to buy.

The price is based on an equilibriun between supply and demand. Simple simple economics. So if sellers dictate the price of property, why have house prices collapsed close to 40% now from the peak? So the sellers are reducing prices out of the goodness of their hearts?

OP don't touch any property until after the budget.

kenbrady

tech2 wrote: »

Stupidest comment of the week so far.

Have you got anything to add apart from useless, unfounded comments ?

It's a fact sellers won't drop the prices to what the market is prepared to pay.
That is why there is virtually zero houses selling at the moment.

The houses that do sell is where the buyer is knowingly paying over the odds for the property, but thinking sure I don't care I'm going to live her for X number of years, prices will rebound eventually.

Sellers are setting the price of houses not the market and what people are prepared to pay. People are not buying house because they think the value will continue to drop not because they can't get funding.

kenbrady

DJDC wrote: »

The price is based on an equilibriun between supply and demand. Simple simple economics. So if sellers dictate the price of property, why have house prices collapsed close to 40% now from the peak? So the sellers are reducing prices out of the goodness of their hearts?

OP don't touch any property until after the budget.

The property market in Ireland has not been about supply and demand for years, it's been about speculation.

SkepticOne

kenbrady wrote: »

Sellers are setting the price of houses not the market and what people are prepared to pay.

Obviously, a seller can set whatever asking price they want on their particular house. However whether this has an effect on the price that matters: the market price, the price at which houses in general change hands, is another matter entirely. At the moment there's a huge excess of sellers over buyers in the market so it is largely the buyers that determine the actual market price.

It was not always like this. At the height of the boom sellers dictated the (market) price since there were and excess of buyers over sellers. It may return to this state of affairs, but in my opinion this is a few years off.

SkepticOne

kenbrady wrote: »

The property market in Ireland has not been about supply and demand for years, it's been about speculation.

I would say that the market has always been about supply and demand but in the years leading up to the crash, it was increasingly short term speculative demand rather than demand for housing. Demand nevertheless.

One of the first things to go when the bubble burst was this speculative element. The small-time-buy to let landlord almost straight away stopped buying new properties.

stepbar

Ponster wrote: »

Been living in a 300sqf with my wife for about 5 years now. If you haven't really known anything anything bigger (since I was 18 and left home) then you get used to it very quickly.

I agree, I've lived in a 33sqm apt before and loved it. At present I live in accomadation not much larger. I would have no quams about living in same again.

spockety

kenbrady wrote: »

Sellers are setting the price of houses not the market and what people are prepared to pay. People are not buying house because they think the value will continue to drop not because they can't get funding.

It's a combination of both. But houses that are not priced to market are simply not actually participating in 'the' market.

A seller dictating the price of a 3 bed semi in Stillorgan at 700k is participating in the market about as much as they would if they had set the price at 25 million. They're not.

A distinction needs to be drawn. Houses being advertised above a certain level aren't actually participating in any sort of market whatsover, I'm not sure what they think they're doing, but they're not actually on the market.

loyatemu

stepbar wrote: »

*I'm more interested in the differing opinions in price more than anything else, however I'm still doing this for selfish reasons

Right, this is the property -

http://www.myhome.ie/residential/search/brochure/3-gandon-close-harolds-cross-dublin-co&-city/UAWNS410836

Management fees are 1.2k p.a.

I had a look at it this evening and was "thinking" of making an offer. My offer is based on a rent of ........ actually this is where I'm having difficulty. Effectively this place is a converted studio and IMO wouldn't rent for any more than 600eur. Based on this ((600*12)-1.2k)*16 = 96k. How in ever I think that's a bit much for what is in effect a converted studio. Anyhow I was thinking that 80k would be plenty. Of course, I wouldn't have long term plans of staying there hence I'm pricing on the negative.

Thoughts?

I know the lads on the Pin are fond of that formula, and who knows after a couple more years of price drops some properties in Ireland may even be going for prices that reflect it. But you haven't a hope in hell of getting that place for that price now, so IMO you'd be wasting your time even making an offer.

And as someone else has pointed out, I wouldn't be making any offers before the budget.

stepbar

loyatemu wrote: »

I know the lads on the Pin are fond of that formula, and who knows after a couple more years of price drops some properties in Ireland may even be going for prices that reflect it. But you haven't a hope in hell of getting that place for that price now, so IMO you'd be wasting your time even making an offer.

And as someone else has pointed out, I wouldn't be making any offers before the budget.

Thanks for your opinion, appreciated. I have put in an offer but at 100k. After thinking hard about it I admit 80k was low and 100k reflects a yield of 6%. I'll know tuesday if it will be accepted or not. Fingers crossed it will.

irishguy

stepbar wrote: »

I agree, I've lived in a 33sqm apt before and loved it. At present I live in accomadation not much larger. I would have no quams about living in same again.

Really?? I live in a 50sqm 2 bed apartment with my girlfriend and I feel its too small. We dont have enough storage at all, if we have people staying you are ontop of each other.

The new building regs will mean that 1 beds will be bigger than 50SQM (cant remember the exact size) so it will be VERY hard for you to sell this. Would you not consider getting something bigger, if you cant afford a bigger place I would wait a few more years to buy a place as house prices are going to jump up any time soon. Also €1200 management fees seem very steep for such a small apartment.