Death of the flipper

handlemaster

The property flipper was very popular during the boom. If the prices are so high in Dublin as claimed by many with high demand where are the flippers ? The property price register would show that this activity has all but died.

L1011

Firstly I don't think it was as common as people thought. Second issue is that anyone doing it likely got seriously burnt last time and may not have the cash or borrowing potential to try again. Third issue is that prices aren't rising fast enough if at all in Dublin.

handlemaster

L1011 wrote: »

Firstly I don't think it was as common as people thought. Second issue is that anyone doing it likely got seriously burnt last time and may not have the cash or borrowing potential to try again. Third issue is that prices aren't rising fast enough if at all in Dublin.

It wasnt totally based on rising prices but that did help.

L1011

handlemaster wrote: »

It wasnt totally based on rising prices but that did help.

People price in renovations and likely improvements now though. House with 20k work needed won't be much more than 20k below the same house with that work done

borderlinemeath

And they also have to factor in that CGT was 20% back then but up to 33% now.

pobber1

Still plenty of this going on -> http://www.thepropertypin.com/viewtopic.php?f=10&t=58988&start=300

L1011

pobber1 wrote: »

Still plenty of this going on -> http://www.thepropertypin.com/viewtopic.php?f=10&t=58988&start=300

At the high end, mostly, though.

The UK flipping system is the kind you see the (sanitised and selected) kind of on Homes Under The Hammer, buying a £70k house, doing £10k of work and selling for £110k.

That doesn't work over here as much due to higher labour costs, higher input costs even if doing it yourself, no ability to self-conveyance which an experienced flipper could easily do, and so on.

3DataModem

Not as much during boom because of stamp duty... Ie high transaction costs.

Desmonddoyle

There will always be flippers until such a time as we have a properly functioning market. I think a lot of people still see it as easy money, and it's only when they go through the process that they actually realise both the risk and cost involved. Having said that, it can work if you can find someone who doesn't mind being flipped, and there are people out there.

People seem to have bought period houses in the city centre cheap in the bust and now trying to sell them on as diamonds in the rough.

16 whitworth road, bought in june 2013 for 220
sold to some bright spark recently for 410 (in fairness, there was quite a bit of work done on this one)

Even down the country, bargains were being picked up where some value could be squeezed
39 the pines portlaoise bought for 91.1 july 2014 and
sold following year for 116k, in exactly the same condition. that's a 27% increase in value that can't be explained by anything.

newacc2015

The capital gains tax is the main killer. Why risk all that time, money and effort when you will be taxed at 33% on your profit? Plus I think most Irish people arent generic any more. Every house you go into feels unique now. Where as 10/15 years everyone had the same kitchen, same generic colour scheme. No one wants a house done to someone elses tastes

I personally hate when I see a "recently renovated house" on myhome.ie. Just because the owner decided to put in horrific cheap kitchen and bathroom straight out of 2002. Doesnt mean that I will pay a premium for it. The trend with most houses, is people are buying them and then completely gutting them. I know when I buy a house I want something straight out of 1958. I want the entire house done to my taste. Not by a person who thinks magnolia in every room in 2015 is still acceptable

newacc2015

The capital gains tax is the main killer. Why risk all that time, money and effort when you will be taxed at 33% on your profit? Plus I think most Irish people arent generic any more. Every house you go into feels unique now. Where as 10/15 years everyone had the same kitchen, same generic colour scheme. No one wants a house done to someone elses tastes

I personally hate when I see a "recently renovated house" on myhome.ie. Just because the owner decided to put in horrific cheap kitchen and bathroom straight out of 2002. Doesnt mean that I will pay a premium for it. The trend with most houses, is people are buying them and then completely gutting them. I know when I buy a house I want something straight out of 1958. I want the entire house done to my taste. Not by a person who thinks magnolia in every room in 2015 is still acceptable

Tarzana2

newacc2015 wrote: »

The capital gains tax is the main killer. Why risk all that time, money and effort when you will be taxed at 33% on your profit? Plus I think most Irish people arent generic any more. Every house you go into feels unique now. Where as 10/15 years everyone had the same kitchen, same generic colour scheme. No one wants a house done to someone elses tastes

I personally hate when I see a "recently renovated house" on myhome.ie. Just because the owner decided to put in horrific cheap kitchen and bathroom straight out of 2002. Doesnt mean that I will pay a premium for it. The trend with most houses, is people are buying them and then completely gutting them. I know when I buy a house I want something straight out of 1958. I want the entire house done to my taste. Not by a person who thinks magnolia in every room in 2015 is still acceptable

Which do you want?

MarkAnthony

There are people still at it. They're generally a quite savvy on the area and pick somewhere that is improving, get a wreck (but fine structurally) do a good job of cheaply renovating it and sell it on. I have to disagree that people price in renovations. People will pay a premium for houses in walk in condition for any number of reasons.

DublinDilbert

MarkAnthony wrote: »

There are people still at it. They're generally a quite savvy on the area and pick somewhere that is improving, get a wreck (but fine structurally) do a good job of cheaply renovating it and sell it on. I have to disagree that people price in renovations. People will pay a premium for houses in walk in condition for any number of reasons.

The flips are still coming, from the lower 2013 prices.

This house (http://www.myhome.ie/residential/brochure/61-glenville-drive-blanchardstown-dublin-15/3160468) sold in 2013 for €162, rented for a year, they then lashed cheap white paint over every wall in the place + new cheap carpets. Just sold for €242k a few weeks back.

It went on the market round may and took 4 months to shift, price started off around €305k, but dropped every month till it sold. The daft price had actually dropped to €250k, but that wasn't shown on my home.

Interestingly they managed to hide the 2013 price from the property price register, it must of been on the register at some point as the 2013 price is displayed on the myhome price register map view.

April 73

Another example of a "typo" obscuring info from the PPR? Amazing how often it happens.

DublinDilbert

April 73 wrote: »

Another example of a "typo" obscuring info from the PPR? Amazing how often it happens.

It's a funny one, cause it's brief appearance (via myhome) seems to only have happened this June.