Real value of this house?

eobphotography

Is this a fair asking price? Beautiful house, but not so beautiful area

http://www.myhome.ie/residential/brochure/63-reuben-avenue-rialto/1322609

Oracle

I'm surprised to say ..... yes! :eek:
The value is at or near the actual asking price, it's a beautiful home, perfectly presented.

desertcircus

Depends on what you mean by fair. Nobody's likely to get a mortgage for more than treble their annual income at 90% of value, so that price indicates it'll be pitched at people earning about eighty thousand euro a year.

Alternatively, you could go with the 12-14 times rental income figure, which gives a higher amount thanks to the artificial floor on rental prices. There's not a single two-bed in Rialto hitting a thousand a month on Daft, so the absolute max reasonable figure would be twelve thousand a year - which indicates that a sensible price would be around 144k.

Or you could take a look at the prices on comparable properties on Daft. 53 Reuben Avenue is on sale for a hundred and ten thousand - or less than half the price for a near-identical house five doors down. The place is in rag order, but a hundred and forty thousand euro goes a long way in renovations.

Summary: no.

eobphotography

any thoughts on the area, very close to Dolphins Barn, well is in Dolphins barn really, but on the other hand very close to town, is it safe, will prices fall a lot more here?

desertcircus

Nobody knowsfor sure, but it's a fairly safe bet that houses will (eventually) sell at the prices banks are happy to provide mortgages for. That means that sooner or later, the average house in Ireland will cost about three-and-a-bit times the average annual salary in Ireland. Is a two-bed terraced house on the edge of Dolphin's Barn an above-average place to live?If it's not, then sooner or later they'll change hands for under a hundred thousand euro.

Oracle

I don't know the area, although I've heard of it. As far as I know, it's solid working class, slowly being gentrified. I remember pre-boom it was a favourite road to buy and flip houses on. Almost every agent had a house on Reuben Avenue or Cork Street for 40k.

I'm not sure how much lower prices can go. They will undoubted fall further in the next 6-12 months everywhere. On the other hand it depends on how much you want to buy. If you can wait, I'd wait till next year. Although I think this house will be bought, because what else is available for the money? A pokey 1/2 bed apartment .... the other option is to monitor this house say weekly and wait for the price to drop, risky but might be worth it.

Mary28

I think the price of that house is unrealistic. I remember bidding on a house on that street about 11 yrs ago, it's asking was around 80, it went for 105 and it did need refurbishment. I don't think the area really improved that much in the boom and it's certainly not going to improve much in the next few yrs. I bought in the area and was mugged on Dunore Ave, as was a friend of mine. You could get mugged in the city centre or anywhere else for that matter but no the area is not good and I would never live in the area again, fine when you're young but I was never relaxed there and was always expecting a breakin/trouble due to the area & no of unemployed & drug problems in the surrounding highrises. There are no amenities for children either and every house purchase is a long term prospect these days unlike a few yrs ago so if family is on the future agenda I'd look elsewhere. Pros is it's reasonably close to town and you'd have no trouble renting it but maybe it wouldn't cover the mortgage as a previous poster worked out.

ArtSmart

some great responses.

was it Adams who suggested the correct price for something was the amount one was willing to pay?

anyway 1/ all depends on your objective. if it's a beautiful home requiring no work in an ok area,and is close to CC. to be lived in for roughly 7 years from which you will neither make nor lose too much on re-sale yup.

otherwise, nope.

ArtSmart

eobphotography wrote: »

any thoughts on the area, very close to Dolphins Barn, well is in Dolphins barn really, but on the other hand very close to town, is it safe, will prices fall a lot more here?

As for the area, lived there years ago, no probs. as in no joy-riding, break-ins,people noise, hassle, etc. but as for journeying into town and back - take the usual precautions.

as for prices, relatively not really gonna change for a house of that caliber. .

edit, took a street view, grand spot, nice cul de sac of SCR. bootiful. If i were single, working in dub for the next 5-7 years, I'd snap it up.

edit2. course, if I was in no rush, the house for 100G odd....well above is right, 70G more = bootiful home. having said that I do like the cul de sac buzz myself.

edit 3. (i'm bored) Hmmm. to bring 53 up to 63 standards would take more than 70 G. a lot more. (as there is an extension).

so, overall. 63 is a good deal.

desertcircus

ArtSmart wrote: »

As for the area, lived there years ago, no probs. as in no joy-riding, break-ins,people noise, hassle, etc. but as for journeying into town and back - take the usual precautions.

as for prices, relatively not really gonna change for a house of that caliber. .

edit, took a street view, grand spot, nice cul de sac of SCR. bootiful. If i were single, working in dub for the next 5-7 years, I'd snap it up.

edit2. course, if I was in no rush, the house for 100G odd....well above is right, 70G more = bootiful home. having said that I do like the cul de sac buzz myself.

edit 3. (i'm bored) Hmmm. to bring 53 up to 63 standards would take more than 70 G. a lot more. (as there is an extension).

so, overall. 63 is a good deal.

I really don't think so. At 250k, the most likely mortgage situation is someone with a deposit of 25,000 and a salary of eighty thousand euro. Eighty thousand a year puts the earner in the top three or four per cent of earners in the country, and a two-bed terraced house is simply not in the top three or four per cent of houses in Ireland.

Nobody without either a huge sack of money or an extremely high-paying job will get a mortgage for that house at that price. A mortgage on the place would cost more than the equivalent rent on a two-bed in Rialto, with a huge risk of falling prices and negative equity to go with it. In an environment with falling prices, and a project house available for less than half the price five doors down, it'd be madness to buy - unless you're in an extremely secure job, earning huge amounts of money, absolutely in love with that exact house, and don't care that in two years you'd get a better deal on a better place in a better area.

The_Conductor

ArtSmart wrote: »

some great responses.

was it Adams who suggested the correct price for something was the amount one was willing to pay?

anyway 1/ all depends on your objective. if it's a beautiful home requiring no work in an ok area,and is close to CC. to be lived in for roughly 7 years from which you will neither make nor lose too much on re-sale yup.

otherwise, nope.

Publilius Syrus actually- Everything is worth what its purchaser is willing to pay for it........

ricman

What is a project house ,is that an ex corporation house.

Tails142

There was a murder at the end of Reuben Avenue a couple of years back, some junkie climbed into the house through a window and went rooting around. When someone woke up, the junkie stabbed the person through the heart.

Would put me off knowing that there were those kind of people walking about the area just looking for an opportunity.

http://www.breakingnews.ie/ireland/mhauaucwcwkf/

The_Conductor

Tails142 wrote: »

There was a murder at the end of Reuben Avenue a couple of years back, some junkie climbed into the house through a window and went rooting around. When someone woke up, the junkie stabbed the person through the heart.

Would put me off knowing that there were those kind of people walking about the area just looking for an opportunity.

http://www.breakingnews.ie/ireland/mhauaucwcwkf/

Come-on- its not like there is a gang of junkies just hanging around waiting for an opportunity like what happened to the poor unfortunate Chinese guy and his girlfriend. Lots of bad things happen in lots of places. Picking a single event that happened 4 or 5 years ago as justification for not buying a property in the area- is going overboard. If that one incident is all thats happened there- its a hell of a lot safer than many other areas.......

Aprilmay

smccarrick wrote: »

Come-on- its not like there is a gang of junkies just hanging around waiting for an opportunity like what happened to the poor unfortunate Chinese guy and his girlfriend. Lots of bad things happen in lots of places. Picking a single event that happened 4 or 5 years ago as justification for not buying a property in the area- is going overboard. If that one incident is all thats happened there- its a hell of a lot safer than many other areas.......

I totally agree with the previous poster and I grew up not fair from this area and I think its a fair price for a gorgeous home - these cheaper homes that people are talking about where usually homes that were wrecks that needed several skips -these style homes have always been highly desirable and thus carried a premium compared to other homes in the area.People keep talking about 250K mortgages and having little fits the OP may have a large deposit for all people know I think its wrong to make assumptions without knowing the facts -he may well be a cash buyer there are still some out there.

desertcircus

The OP may be a cash buyer, but that doesn't change the fact that the likely floor price of a two-bed terraced house in Rialto isn't likely to be six figures by the time the market starts recovering. Sales prices, sooner or later, are going to reflect the fact that half the country will be looking at a maximum possible mortgage of about ninety thousand euro. In that circumstance, it's risky to be buying when all indicators are telling us that prices will fall further - no matter how much of the purchase price will be in cash.

eobphotography

thanks for all the feedback, no I'm not a cash Buyer, but should be able to secure around 200k mortgage, have deposit too. Was just curious what peoples thoughts on great houses in not so great areas should or could go for. I dont think I'd risk buying in this area to be honest, like one poster mentioned the lack of amenities for families would be a major turn off. I drove around the area yesterday and it is quite bleak, one nice street then turn the corner and it looks like the 90's/ noughties never happened, straight back to 1985. I think its a shame how little real development happened during the boom, these areas close to city centre such as Dublin 8 and Dublin 7 could be very desirable if the they had been regenerated properly, alas instead we have over supply of cheap apartments on the docks and all these fine brick houses in undesirable locations.

lainey316

desertcircus wrote: »

I really don't think so. At 250k, the most likely mortgage situation is someone with a deposit of 25,000 and a salary of eighty thousand euro. Eighty thousand a year puts the earner in the top three or four per cent of earners in the country, and a two-bed terraced house is simply not in the top three or four per cent of houses in Ireland.

Surely someone on 80k should have a hell of a lot more deposit than 25k?

I think this house is beautiful by the way, seems to be a fabulous job, but you'd have to lift and shift it a few miles up the road for me to consider it (I look at the ad every so often with those thoughts, passing the time). Too close to Dolphin House for me.

desertcircus

They should, but the biggest mortgage anyone will be given for a terraced house is around nine-tenths of the total price. Even if the potential buyer has seventy thousand quid saved up, they'll still need a salary in the region of sixty K a year to get the bank interested - assuming the bank are happy with the valuation.

Kaluza

You're meant to buy the worst house on the best street...definitely not vice versa!

TommyTippee

A quarter of a million to live in Rialto!

:pac::pac::pac::pac::pac::pac::pac:

user1842

lainey316 wrote: »

Surely someone on 80k should have a hell of a lot more deposit than 25k?

I'd like to do the maths here:

Lets says the person is in the public sector on a good job of 80k and lets do the calculations by month.

80k is €3600 a month after tax.

Some assumptions:

€600 a month on rent
€400 a month car loan
€200 a month credit card
€100 a month VHI

Thats €2300 left and lets say the person can save €500 of this after food, petrol, kids etc.

So thats a saving of €6000 a year.

It would take 4 years for a person on 80k to get a deposit of 24,000.

I think im being generous about saving €500 a month too.

Does not really fill you with confidence does it

http://taxcalc.eu/ was the site I used for tax.

* a person in the private sector on 80k would be better off as they dont pay the pension levy

Zamboni

TommyTippee wrote: »

A quarter of a million to live in Rialto!

:pac::pac::pac::pac::pac::pac::pac:

+1
Absolute madness.

DublinDilbert

TommyTippee wrote: »

A quarter of a million to live in Rialto!

:pac::pac::pac::pac::pac::pac::pac:

+1

I would guess this place would be worth €150K Max in the long run. One that's not done up in the same area would be max €100K. Two bed appartments should be about €90K max.

Arciphel

have you been to see the house? One thing I noticed, all the pictures have been taken by a fairly professional photographer with a very wide angle lens, so I wouldn't be too surprised if you find the interior of the house a lot smaller than you might perceive from just the photos.

Zamboni

dmclean1842 wrote: »

80k is €3600 a month after tax.

Some assumptions:

€600 a month on rent
€400 a month car loan
€200 a month credit card
€100 a month VHI

Thats €2300 left and lets say the person can save €500 of this after food, petrol, kids etc.

So thats a saving of €6000 a year.
It would take 4 years for a person on 80k to get a deposit of 24,000.
I think im being generous about saving €500 a month too.
Does not really fill you with confidence does it

Are you for real?
€3,600 net a month and can only save €500?

Your post is a classic example of the lack of financial acumen in this country.
It just goes to show that it's not what you earn but what you spend it on...

user1842

Zamboni wrote: »

Are you for real?
€3,600 net a month and can only save €500?

Your post is a classic example of the lack of financial acumen in this country.
It just goes to show that it's not what you earn but what you spend it on...

You want to back that statement with some figures please?

At least I tried.

lainey316

dmclean1842 wrote: »

I'd like to do the maths here:

Lets says the person is in the public sector on a good job of 80k and lets do the calculations by month.

80k is €3600 a month after tax.

Some assumptions:

€600 a month on rent
€400 a month car loan
€200 a month credit card
€100 a month VHI

Thats €2300 left and lets say the person can save €500 of this after food, petrol, kids etc.

So thats a saving of €6000 a year.

It would take 4 years for a person on 80k to get a deposit of 24,000.

I think im being generous about saving €500 a month too.

Does not really fill you with confidence does it

http://taxcalc.eu/ was the site I used for tax.

* a person in the private sector on 80k would be better off as they dont pay the pension levy

Your net is seems wrong, it's not far off mine and I earn a lot less than 80k. Now I don't have kids or a car but my rent is higher than that and I save 1000-1300 per month, without any scrimping (I spend far too much on clothes/eating out/travelling to remotely suggest any scrimping).

Anyone on 80k (or even 50k) not clearing their credit card monthly/treating it as a bill should seriously look at how they use it, but that's an entirely separate issue.

ETA - your site says 3960 public/4400 private - not sure how you got to 3600

user1842

lainey316 wrote: »

Your net is seems wrong, it's not far off mine and I earn a lot less than 80k. Now I don't have kids or a car but my rent is higher than that and I save 1000-1300 per month, without any scrimping (I spend far too much on clothes/eating out/travelling to remotely suggest any scrimping).

Anyone on 80k (or even 50k) not clearing their credit card monthly/treating it as a bill should seriously look at how they use it, but that's an entirely separate issue.

The net is right I think, it public sector remember.

With no car, you would save a lot more.

Im basing my calculation on a sole earner.

user1842

lainey316 wrote: »

ETA - your site says 3960 public/4400 private - not sure how you got to 3600

No site says €3600 unless im doing something wrong. Where are you getting €3960 from?

lainey316

dmclean1842 wrote: »

The net is right I think, it public sector remember.

With no car, you would save a lot more.

Im basing my calculation on a sole earner.

Ah, I had married with children because of your other assumptions (i.e. kids), which brought it to the 3964 net. Assuming unmarried with kids it's 3801.

A car costs €500+ per month on top of your car loan assumption of €400? Glad I don't have one then!

I think someone on 80k coming out with that little savings would want to re-evaluate their approach to money tbh. But that's just my opinion.

Zamboni

dmclean1842 wrote: »

You want to back that statement with some figures please?

At least I tried.

Why would you have a €400 car loan?

If the car had been saved and bought in cash, there is another €400 saving on top of your €500.

If a person is going to purchase short-medium term luxuries on interest then clearly they do not have a priortiy of saving for a deposit.

user1842

lainey316 wrote: »

Ah, I had married with children because of your other assumptions (i.e. kids), which brought it to the 3964 net. Assuming unmarried with kids it's 3801.

A car costs €500+ per month on top of your car loan assumption of €400? Glad I don't have one then!

I think someone on 80k coming out with that little savings would want to re-evaluate their approach to money tbh. But that's just my opinion.

Sorry should not have said kids on my first post. All calculations based on a single person.

user1842

Zamboni wrote: »

Why would you have a €400 car loan?

If the car had been saved and bought in cash, there is another €400 saving on top of your €500.

If a person is going to purchase short-medium term luxuries on interest then clearly they do not have a priortiy of saving for a deposit.

Where are you going to get the cash from to buy a car?

If you need a car for work you dont have that luxury.

A car is short-medium term luxury, really.

Zamboni

dmclean1842 wrote: »

Where are you going to get the cash from to buy a car?

If you need a car for work you dont have that luxury.

A car is short-medium term luxury, really.

Using your figure of a €400 repayment, on a credit union car loan at 6% for 5 years would give a amount of €22,000.

Why would you need a car of €22k to get to work?
Surely you could get one for €5k?

This is going really off topic but it is not remotely difficult for a person on 80k a year to save €500+ a month.
Unless that person purchases a lot of luxuries and in that case, their priorites are clearly elsewhere.

user1842

Zamboni wrote: »

Using your figure of a €400 repayment, on a credit union car loan at 6% for 5 years would give a amount of €22,000.

Why would you need a car of €22k to get to work?
Surely you could get one for €5k?

This is going really off topic but it is not remotely difficult for a person on 80k a year to save €500+ a month.
Unless that person purchases a lot of luxuries and in that case, their priorites are clearly elsewhere.

Car was 12000 over 3 years. Anyway off topic now.

The_Conductor

Comeon guys- less of the bickering- its of only very peripheral to the OPs question.

Shane

TommyTippee

You would want to be mentally deranged to pay anywhere near €250,000 for ANY two-bed gaff in Rialto.

Blackjack

TommyTippee wrote: »

You would want to be mentally deranged to pay anywhere near €250,000 for ANY two-bed gaff in Rialto.

Particularly when you there are 4 or so 3 beds around the corner for between 199K and 240.

Icepick

Is OP joking? Try 175k and I still say no because of the location.