Irish Property Market chat II - *read mod note post #1 before posting*

Villa05

https://www.boards.ie/discussion/comment/122032363#Comment_122032363

Yet 20% plus of new housing output is one off homes in rural areas, while nimbys carry far too much power in central areas in the planning process. Pandering to local populism

Failure built into the system

Fitz*

A house has come up for sale, with no internal pictures so I said I'd have a look at Google maps to see the layout etc. There was a sale agreed sign outside the house, in 2019, so delved deeper.

Sold for €260,000 in 2019

Sold for €285,000 in 2023

Sold again for €319,000 in 2023

on the market now for €400,000 in 2024.

Is this a case of bad neighbours / long term tennants or classic house flipping? Seems a bit weird to be on the market so much.

Dav010

https://www.boards.ie/discussion/comment/122035177#Comment_122035177

If it needs a lot of work, buyers possibly struggling to get builders, or renovations are costing more than expected. Whatever it is, there is some very nice short term profits being made by owners.

Why not link the ad?

Hawkeye123

Everyday I am seeing news reports of a probable ECB rate cut in June, but I don`t believe that will happen. I think Philip Lane and others will continue to hint it will probably happen but come June, I reckon they will postpone it until August and in August, they will postpone it again. Basically, they have no intention of cutting rates until the stock market and proprty market crash first. They don`t want the markets to crash so they promise rate cuts to encourage those with debts not to give up and continue making payments but come June, there will be no rate cut. Quote me in June, if I am wrong.

combat14

https://www.boards.ie/discussion/comment/122035819#Comment_122035819

also concerns about all out war in Middle east region potentially driving oil and other commodity prices higher so looks like ECB nervous to act just yet

Fitz*

https://www.boards.ie/discussion/comment/122035451#Comment_122035451

Here it is. They've attached no inside images, but they do have plan drawings attached. Maybe there is structural issues. If there is, that price is a disgrace. Good area tbf, but of it needs work it is greedy.

https://www.daft.ie/for-sale/semi-detached-house-90-renmore-park-renmore-renmore-co-galway/5662709

Dav010

https://www.boards.ie/discussion/comment/122036007#Comment_122036007

Those are building drawings dated 2021 if you look at both sets of plans, the extended house is very different from the current one. As I said in my earlier post, the likely cause of the property changing hands is the availability/cost to construction. The ad actually says it comes with existing planning permission which would increase it to 3k ft2 house in a desirable location , that would justify the price.

I’ve never understood why people think selling your property for its highest value is greedy, I wonder would people who say that sell their own house for less than someone is willing to pay it and willingly give up tens of thousands of Euro.

Fitz*

https://www.boards.ie/discussion/comment/122036031#Comment_122036031

It's moreso just trying to take advantage of the current market and exploit the price.

They bought the house 5 months ago and have put an extra 80k onto the asking price, without doing any extra work to the house. It's BER exempt. The planning plans were from 2 owners previous. That is greed.

Dav010

https://www.boards.ie/discussion/comment/122036160#Comment_122036160

You decide to sell your house, do you accept the highest bid, or a lower one because you think that’s all your house is worth and forego the difference?

You can call it greed, but unless you are a complete idiot who likes giving away money, you sell for the price the market will pay.

herbalplants

https://www.boards.ie/discussion/comment/122036160#Comment_122036160

Pure madness and greed absolutely!

Dav010

https://www.boards.ie/discussion/comment/122036356#Comment_122036356

The PPR shows a much smaller old house listed for €365k in Renmore which sold for €430k in February, the buyers will undoubtedly have to spend to modernise it. If this property sells for asking or above, then the seller is a lot smarter than some here, and the buyers will have one hell of a house when it’s finished.
We’ll just have to wait and see.

timmyntc

It is bad value - the cost to modernize will bring it into a price bracket that would never be justified unless you get some very good value construction.

Similar houses in arguably more desirable areas in Galway:

440 and 470k for 5 beds in similar (nicer) area. And those houses are kept, unlike that one with no pictures and very dated looking house, windows and door. Usually EAs don't put up pictures for a reason.

https://www.daft.ie/for-sale/detached-house-46-glenina-heights-dublin-road-renmore-co-galway/4593852

https://www.daft.ie/for-sale/detached-house-18-glenina-heights-dublin-road-renmore-co-galway/5370652

Dav010

https://www.boards.ie/discussion/comment/122037000#Comment_122037000

Did you look into the first of those before you posted? It changed hands last June and is now on the market with an €34 k mark up, the ad actually mentions extension/development so the buyer may still have to go through planning to get to a size similar to the earlier linked house. Existing planning does add value.

The second is also very dated, and at E1 rating, will need some money spent on it, also, much smaller than the proposed home in the earlier linked house and no planning. It might be better value if the buyer wants an old house, poor Ber and doesn’t plan upgrades/more living space , for anyone that does, again they run the risk with planning, delays, costs etc which may not make it a better prospect.

SharkMX

https://www.boards.ie/discussion/comment/122036031#Comment_122036031

A elderly neighbor of ours years ago was selling his house. He had bids on it about 25k above the price he then agreed to sell it to another neighbors son. My Dad had a word with the mans family and told them he was being taken advantage of.

It turned out that the guy buying the house had called in to talk about (read give the sob story) the price and they had agreed that a young couple starting out should get the house cheaper. What my Dad said to the family was that that elderly man might as well sell the house for market price and then pile up 25k in the front garden and put a match to it so it all goes up in flames. Same result.

Anyway the house got sold at full market price in the end, but some people are just too cute.

ingo1984

https://www.boards.ie/discussion/comment/122037051#Comment_122037051

I know of two couples in the past 18 months who were fed up of being outbid and bidding going above their budget. So they approached the relevant owners/vendors, offered the asking price, explained they were from the area born and reared and working in the area. In both instances the vendor accepted their offer there and then. Some people aren't motivated by money or greed.

lordleitrim

If someone is selling up to buy elsewhere, they will also be having to pay top dollar. Accusing them of greed for trying to get the best price for their own property to enable them to have sufficient funds to buy elsewhere is a bit bleeding hearts.

Why should a house worth 400K only be sold for 200k because that's all sob story strangers Johnny and Fiona can afford? Also, you realise that if you "gift" a discount to a buyer at below the market rate, the buyers are liable for Capital Acquisition tax. That's why the PPR denotes below market rate sales. Unless someone is a family member or there are unique circumstances for doing so, selling at below market rate is just foolish.

SharkMX

https://www.boards.ie/discussion/comment/122037528#Comment_122037528

i guess there is one born every minute :)

herbalplants

https://www.boards.ie/discussion/comment/122037856#Comment_122037856

I don't know this particular house but "They bought the house 5 months ago and have put an extra 80k onto the asking price, without doing any extra work to the house". 80k increase in 5 months for no real work done.

I am glad you are flush with cash.

Dav010

https://www.boards.ie/discussion/comment/122038378#Comment_122038378

How do you know they haven’t done any extra work?

herbalplants

https://www.boards.ie/discussion/comment/122038385#Comment_122038385

I don't. I was only going by what was posted initially. Also the fact that they are no pictures posted indicated that no work has been done.

timmyntc

https://www.boards.ie/discussion/comment/122038385#Comment_122038385

Surely first thing they'd do is replace those windows and doors. House is tired looking, if they were spending anything doing works surely you'd give it a paint to make it look fresher for sale.

DataDude

https://www.boards.ie/discussion/comment/122037528#Comment_122037528

It’s a nice sentiment, but the bit I don’t get is - if you were to decide you were sufficiently wealthy to essentially donate 20/30/40k+ of your own money - would you not do it to an actual charity, maybe a struggling family member or whatever. Can’t see justification for giving the money to some random stranger you’ll likely never meet who just happens to be buying your house.

Dav010

https://www.boards.ie/discussion/comment/122038441#Comment_122038441

They would be replaced during/after construction works, not before.

timmyntc

https://www.boards.ie/discussion/comment/122038598#Comment_122038598

The claim is that they have done some work to the house to add value, and now are selling. If they were doing works they would have upgraded the windows and doors, as a job like that would greatly increase the value of house and also the BER.

It doesn't make sense that they would do some works but not doors and windows which are quite easy and relatively non invasive.

Dav010

https://www.boards.ie/discussion/comment/122038653#Comment_122038653

Replacing windows/doors before construction works which would add a major, ~900ft2 extension and change the profile of the house, would seem a unique way of going about things, but hey, if you don’t mind paying again for new windows after construction, go for it.

Roberto_gas

Jaysus..what about other keeps going way above asking…i say ppl buying them are fools rather than sellers being greedy

combat14

Residential property transactions fall 18% in first quarter as higher borrowing costs bite

Report by property start-up Geowox highlights steep decline in transactions on back of 10 straight ECB interest rate hikes

The fall-off in new home sales was even steeper, declining by 26.1 per cent — from 2,157 last year to 1,595 in 2024 — while existing home sales fell by 16.8 per cent to 8,618.

The slide in transaction volumes did not translate into a decline in prices, however.

“The decline [in transactions] could be due to various factors such as economic uncertainty, changes in mortgage rates or other regulatory impacts on the housing market,” said Geowox’s Marco Giardina.

https://www.irishtimes.com/business/2024/04/20/residential-property-transactions-fall-18-in-first-quarter-as-higher-borrowing-costs-bite/

LJ12345

https://www.boards.ie/discussion/comment/122041877#Comment_122041877

Terrible article. Theres several thousand less properties available for sale now v’s then so clearly transactions will be down. ’Residential’ buyers are locked out by lack of properties coming to the open market. Does anyone have insight into yoy stats of % new builds going to councils and funds?

Bass Reeves

Most auctioneers will advise you to do nothing you house you are selling. I think I saw figures years ago if you replaced the windows in a house you woukd only recover 50% of the cost at sale. It was only 20% if a new kitchen.

https://www.boards.ie/discussion/comment/122036007#Comment_122036007

TThe House has really old Aluminium windows, probably replaced 50+ years ago. There probably been very little done in the house in 50 years therefore let the punter decide. Did the last buyers live in the house the two year vacant house grant may be in play.

https://www.boards.ie/discussion/comment/122037000#Comment_122037000

Both Those houses need modernising as well. The planning in the Renmore park house is would take a year in lead in time compared to the Glenina houses. For instance if buying the RP house you could be tendering during the sale process, you could not do anything in the line of tge planning process in case the sale fell through

combat14

how the government have effectively brought back 100% (97.5%) mortgages to drive up house prices and artificially prop up the market

https://m.independent.ie/storyplus/looking-to-buy-your-first-home-heres-what-your-monthly-repayments-could-look-like/a919395758.html