Developers selling homes before they're built for first time in years

davet82

http://www.independent.ie/business/personal-finance/property-mortgages/developers-selling-homes-before-theyre-built-for-first-time-in-years-29091748.html

DEVELOPERS have started selling new homes off plans for the first time in more than five years, the Irish Independent can reveal.

The ongoing recovery in city property markets combined with a bottleneck in the supply of family-sized homes means deposits are being put down in advance of construction for more than 100 new homes worth €23m in five developments in the greater Dublin area.

Deposits of €5,000 are being put on homes that are selling for between €200,000 and €400,000. The trend follows a period since 2008 in which almost no new homes were sold.

Estate agents said the revival of advance sales is down to a shortage of family-sized properties close to city areas caused, in part, by negative equity.

wow i didn't think i would see this type of purchasing (buying off the plans)again for a long time

godtabh

davet82 wrote: »

wow i didn't think i would see this type of purchasing (buying off the plans)again for a long time

If there is demand it will happen but I would believe what the indo says until I saw it with my own eyes

the_syco

Deposits of €5,000 as no-one trusts them? Afraid that they'll go bust? I also wonder will the banks still give them the money when they're eventually built?

quad_red

Who in their right mind would give any builder 5k in this environment?

Zamboni

quad_red wrote: »

Who in their right mind would give any builder 5k in this environment?

Ah shure you'd be mad not to.
We're at the bottom and rent is dead money anyway.
They can flip them in a few years and buy a bigger house...

quad_red

Zamboni wrote: »

Ah shure you'd be mad not to.
We're at the bottom and rent is dead money anyway.
They can flip them in a few years and buy a bigger house...

Gah, you're so right!

markpb

godtabh wrote: »

If there is demand it will happen but I would believe what the indo says until I saw it with my own eyes

Friends of mine recently moved into a new built in Maynooth that they bought off the plans. Yes it's anecdotal and yes it's a tiny, tiny data set but absence of proof is not proof of absence

tipptopper

quad_red wrote: »

Who in their right mind would give any builder 5k in this environment?

Fools and their money......... You know the rest

gurramok

Only fools would buy off the plans from developers, you don't know what the house is really finished like except from a drawing on a paper and a souped up showhome.

markpb wrote:

Friends of mine recently moved into a new built in Maynooth that they bought off the plans. Yes it's anecdotal and yes it's a tiny, tiny data set but absence of proof is not proof of absence

Which means they purchased the house off the plans perhaps 18 months-2years ago, sometime in 2011. Must be one of those rare developments that actually completed in the present climate!

ted1

Family homes close to Dublin will genreally sell. There hasn't been too many developments where houses didn't sell.

Also maybe the 5k is going into escrow so the money would be safe

omahaid

I dunno, with Fianna Fail riding high in the polls maybe rent is dead money?

Greenmachine

... heads examined...yadda yadda...


Nothing that has not been said already.

Lyn256

100 out of how many thousand that sold in Dublin last year. 2000/3000??

Hardly merits a story

Indo hype again!

Victor

You don't honestly expect the builders to be building before they have buyers, do you?

The €5,000 deposit is held by the estate agent or solicitor - the builder doesn't get their hands on it until the sale goes through.

A house can be built in three months, depending on weather and time of year (digging foundations or doing a roof in November isn't easy). the 2 year delays during the boom were down to lack of construction capacity. Plenty of over-capacity now.

riclad

You cant judge the market, by one estate or 50 houses sold.
IF a builder can find a site in a middle class area of dublin,he could probably sell 100 new house s ,if the price is realistic.