How to guarantee a property in a new development?

ManUnited123

Hi Guys -

Are there any tips/tricks on how one can guarantee or increase their chances of getting a property in a new development? The reason I ask is that there was a new development which I was really interested in and kept chasing up with the property agent multiple times before the development was launched and then got a call last week to say that the show houses are now available for viewing. I viewed the show house and was ready to put down the deposit to book the property but the agent told me it's all sold out and now I'm on the cancellation list.

How does this happen? Not sure what I could do differently to guarantee a property in a new development? What's worse is that these properties were not even HTB properties! so how can they be sold out so quickly?

Busi_Girl08

Low supply and high demand unfortunately!

Don't think there's any magical way to get through the door, just keep in touch with agents about when the next release will be and keep an eye on your emails/phone and be ready to jump when the announcement was made.

We were on the cancellation list for a dev, delayed by 10 minutes ringing the estate agent about a release of a handful of houses, all but 2 of the houses were gone in the 10 minutes.

GerardKeating

ManUnited123 wrote: »

How does this happen? Not sure what I could do differently to guarantee a property in a new development?

I assume they were bought by people whom "decided" with out a need to view the showhouse.

ManUnited123

GerardKeating wrote: »

I assume they were bought by people whom "decided" with out a need to view the showhouse.

I actually asked this with the developer and they said you cant buy these off plans so i couldnt do that so im guessing this wasnt it.

awec

ManUnited123 wrote: »

I actually asked this with the developer and they said you cant buy these off plans so i couldnt do that so im guessing this wasnt it.

Probably people who got there before you and / or friends and family of the developer / foreman / whatever.

HannahR31

ManUnited123 wrote: »

Hi Guys -

Are there any tips/tricks on how one can guarantee or increase their chances of getting a property in a new development? The reason I ask is that there was a new development which I was really interested in and kept chasing up with the property agent multiple times before the development was launched and then got a call last week to say that the show houses are now available for viewing. I viewed the show house and was ready to put down the deposit to book the property but the agent told me it's all sold out and now I'm on the cancellation list.

How does this happen? Not sure what I could do differently to guarantee a property in a new development? What's worse is that these properties were not even HTB properties! so how can they be sold out so quickly?

When you say you were ready to put deposit down did you try to while at the show house or did you go home and then call?

I made a booking to see a show house but there wasn't one for the particular house I wanted in the development (the show house had been sold for some reason) so I emailed them late the night before the booking and asked to reserve the one I wanted. They confirmed it in the morning and when we went to the viewing they told us that 3 other people that morning had asked to reserve ours. So waiting for the viewing would have been too late.

spaceHopper

ManUnited123 wrote: »

How does this happen? Not sure what I could do differently to guarantee a property in a new development? What's worse is that these properties were not even HTB properties! so how can they be sold out so quickly?

Massive red flag, some probably have been sold to normal buyers but it's likely that a lot were sold for rental to the council as social housing. As the EA straight up how many been bought by an investment fund, housing association or council.

ManUnited123

HannahR31 wrote: »

When you say you were ready to put deposit down did you try to while at the show house or did you go home and then call?

I made a booking to see a show house but there wasn't one for the particular house I wanted in the development (the show house had been sold for some reason) so I emailed them late the night before the booking and asked to reserve the one I wanted. They confirmed it in the morning and when we went to the viewing they told us that 3 other people that morning had asked to reserve ours. So waiting for the viewing would have been too late.

So the showhouse itself wasn't even complete! It was just a work in progress and not a proper showhouse. I was ready to put down a deposit there as well but the lady who was there said she didn't know about the availability and to call the estate agent. I called them up and they were sold out.

I think the best way is to just pay a deposit without even going for a viewing but it's crazy to pay half a million euros without even seeing the property!!!

spaceHopper wrote: »

Massive red flag, some probably have been sold to normal buyers but it's likely that a lot were sold for rental to the council as social housing. As the EA straight up how many been bought by an investment fund, housing association or council.

Yeah - Didn't think about that! You're probably right.

GerardKeating

spaceHopper wrote: »

As the EA straight up how many been bought by an investment fund, housing association or council.

Are they even obliged to answer ?

Naos

GerardKeating wrote: »

Are they even obliged to answer ?

I'd imagine you could infer from a non-answer - if the majority of buyers were private it would be in the EA's interest to tell a potential buyer as they know it's a positive selling point.

drogon.

Sorry but slightly off topic - I see a lot of the new builds are listed as POA on the likes of myhome.ie, is there a bidding process for new builds too or is it fixed ?

Always wondered if people buying similar units, pay the same amount or not!

awec

drogon. wrote: »

Sorry but slightly off topic - I see a lot of the new builds are listed as POA on the likes of myhome.ie, is there a bidding process for new builds too or is it fixed ?

Always wondered if people buying similar units, pay the same amount or not!

Price is fixed but they change the price from phase to phase and it's usually decided late in the day for each phase.

Houses within a phase will vary slightly depending on house type, aspect, size of garden etc etc but usually are all in the same ballpark.

listermint

What makes you think the are not just being snapped up by REIT while they can swoop in and take anything that's going.

Elessar

listermint wrote: »

What makes you think the are not just being snapped up by REIT while they can swoop in and take anything that's going.

This. Billions in global investment money is pouring into Irish property for the guaranteed 30yr+ steady returns. And not just in Ireland either, same thing is happening in the US and much of Europe. The latest legislation from government is just window dressing, REITs, housing trusts and councils are snapping up everything they can get their hands on. On new builds I can only assume the deals are done behind the scenes to ensure they get their pound of flesh and f*ck over first time buyers.

On the second hand market they are outbidding almost everyone, and I have anecdotally heard of people working for the investors going around full time to viewings and outbidding everyone else to secure the property. Which is then packaged up with others and rented to the local county council or housing trust on 30 year leases. No matter the cost, they will pay it, because they know the return over that timeframe completely outstrips it. It's guaranteed money, why wouldn't they? And they still have the asset at the end of it.

Darc19

spaceHopper wrote: »

Massive red flag, some probably have been sold to normal buyers but it's likely that a lot were sold for rental to the council as social housing. As the EA straight up how many been bought by an investment fund, housing association or council.

Unlikely.

Many people will have a relationship with an estate agent especially if the homes are not aimed at 1st time buyers.

I used the same agent for two sale sand one purchase. I know that if I did want to move and he was representing a seller, I'd probably get a bit of priority as he would expect that I'd use him for the sale of my current property.

If its a small development, you'd find initial phases would be sold out quickly. You will also have the current trend of putting a booking deposit down immediately knowing that you will get it back in full if you don't proceed.

awec

I would not be convinced at all hat it's REIT's / funds. Buying some houses in the first phase of a development is not their style. Developers also do not waste time or money engaging estate agents, maintaining cancellation lists etc in such a scenario, it makes no sense.

It is infinitely more likely that there are private buyers ahead of you in the pecking order.

ManUnited123

I actually got a call back from the estate agent as there was a cancellation ! WOHO! So it wasn't all for nothing after all.

I didn't get the ideal property I wanted, it's a mid terrace (I wanted end of terrace) but i guess that's what happens when there's so much demand! Now lets hope everything works out fine in terms of the rest of the process.

One thing I wanted to ask was is that the Estate Agent is asking me to get the contracts signed and she mentioned it takes a few weeks for that to get done. Once the contracts are done I can't change my house (i.e. move from mid terrace to end of terrace if it becomes available). Is that usually how it works? I thought you could change up till you draw down your mortgage? Also what happens if i sign the contracts and then find a house in a better development and want to take that one instead. Could i cancel my contract and get my deposit back or am I bound once the contract is signed?

awec

ManUnited123 wrote: »

I actually got a call back from the estate agent as there was a cancellation ! WOHO! So it wasn't all for nothing after all.

I didn't get the ideal property I wanted, it's a mid terrace (I wanted end of terrace) but i guess that's what happens when there's so much demand! Now lets hope everything works out fine in terms of the rest of the process.

One thing I wanted to ask was is that the Estate Agent is asking me to get the contracts signed and she mentioned it takes a few weeks for that to get done. Once the contracts are done I can't change my house (i.e. move from mid terrace to end of terrace if it becomes available). Is that usually how it works? I thought you could change up till you draw down your mortgage? Also what happens if i sign the contracts and then find a house in a better development and want to take that one instead. Could i cancel my contract and get my deposit back or am I bound once the contract is signed?

Once you sign the contract you're committed.

Darc19

ManUnited123 wrote: »

I actually got a call back from the estate agent as there was a cancellation ! WOHO! So it wasn't all for nothing after all.

I didn't get the ideal property I wanted, it's a mid terrace (I wanted end of terrace) but i guess that's what happens when there's so much demand! Now lets hope everything works out fine in terms of the rest of the process.

One thing I wanted to ask was is that the Estate Agent is asking me to get the contracts signed and she mentioned it takes a few weeks for that to get done. Once the contracts are done I can't change my house (i.e. move from mid terrace to end of terrace if it becomes available). Is that usually how it works? I thought you could change up till you draw down your mortgage? Also what happens if i sign the contracts and then find a house in a better development and want to take that one instead. Could i cancel my contract and get my deposit back or am I bound once the contract is signed?

I'd be talking to a solicitor immediately to make sure you don't make mistakes. I'd recommend [solicitor recommendations by PM only]

You will pay a booking deposit first. This is refundable.

Contracts are sent out, solicitor reads through them, might suggest a couple of changes, will make sure you have the mortgage approval and will then request you sign the contract.

At time of signing you pay the "contract deposit" (usually 10% less the booking deposit) - note the word "contract". You have entered into a legally binding contract at that point.


If the agent has sold you a mid terrace they will probably not revert back to you if an end terrace comes up.

So the choice is either go for the mid terrace or decline and hope an end terrace comes up

ManUnited123

Thanks! So I was talking to a solicitor today and I asked them if for instance for whatever reason I'm not able to draw down the mortgage after signing the contract, what happens then? He mentioned that there's a clause in the contract which will allow me to rescind the contract and get my deposit back.

On that note, are there any other instances where I can get my deposit back after I sign the contract?

C14N

listermint wrote: »

What makes you think the are not just being snapped up by REIT while they can swoop in and take anything that's going.

Because there is no evidence specifically indicating that is what happened? When a REIT went and bought out most of a new development of houses for sale in Maynooth, it was a huge story. The biggest talk of the country for the best part of a week. If they do it again you'd expect to at least see an article covering the story.

It's not at all hard to believe that a new development in Ireland in 2021 has a lot more people looking for the houses than there are houses to sell. Most people will inevitably end up disappointed. I was on a waiting list for apartments in Leopardstown and it finally went up to book viewings a few weeks back. My proof of funds was already submitted and approved, and I think there was maybe a 6 minute gap between getting the email to book a slot and me putting in a request, and I still didn't make the cut. Doesn't mean that a REIT stepped in in those 6 minutes and closed a deal to buy the whole block.

jrosen

I would be cautious with buying in the early stages of a new build development. Typically bulk buying happens in the second /subsequent phases.
However for them all to be sold out just when the showhouse was available to view would be a red flag to me. Unless your way down the list of interested parties or the developer released a small number of houses to gauge interest.

Either way I would be speaking to your solicitor about contracts and how and when you can pull out of the sale if needs be.

awec

jrosen wrote: »

I would be cautious with buying in the early stages of a new build development. Typically bulk buying happens in the second /subsequent phases.
However for them all to be sold out just when the showhouse was available to view would be a red flag to me. Unless your way down the list of interested parties or the developer released a small number of houses to gauge interest.

Either way I would be speaking to your solicitor about contracts and how and when you can pull out of the sale if needs be.

This has been completely normal for 4 or 5 years now.

Sometimes lots of the houses are sold before a sod is turned or a brick laid.