Second thoughts on the sale agreed price

mr_ak

Hi,

I was bidding on a 4-bed semi-detached house in south Dublin and offer accepted today at 691k. 

Now I'm having second thoughts because I wanted to stop at 680k. Need help understanding if this house sounds like it's worth this amount.

Walk-in condition, South Dublin(around Sandyford and Stepaside), 134 sqm semi-detached 4-bed, 2 bath, 1 WC, under stairs storage and cloakroom

A3-rated, side entry to a good-sized east-facing garden that's not overlooked, open plan kitchen and living area(good size), attic storage, parks and some shops nearby

There's one point to be noted- there's a huge development of 400 apartments planned for an area 100 m from the house but the house won't face the apartments.

Not sure if and how that would impact the resale.

Really confused, help!

Thanks

Summer2020

I’ll send you a pm

Princess Calla

Where's the entrance for the apartments?

I wouldn't fancy having an additional 400 cars drive past the house twice a day.

You're paying for location, there is definitely better value out there in Dublin.

Ask yourself why you're picking that area....I get the close to family/friends/work etc. however if this location has none of those would you consider somewhere else?

A friend of mine bought in an old estate has spent a fortune doing it up etc. Now apartments are planned for close by about a 5 min drive but it's on her commute.....she's saying that traffic management is already a nightmare at peak times and now the extra people the apartments will bring, she's considering moving, within the same general area but on a different route. So I wouldn't be dismissing the apartments too easily.

10k overbudget in the grand scheme of things isn't too bad but I do think it has to be for a house you love.

Decide before you pay deposit.

herbalplants

OK 11k over your budget is not bad at all. To be fair it seems like South Dublin is better value than Dublin North. You can only dream at a derelict or looking OK (but scrape the surface and it is derelict) type of house at that price in Dublin north.

The big issue I would have in your place is the development of 400 apartments, 100m from the house. I would not buy that if I was you.

Similarly, it is happening in Howth, massive apartments building going on, the impact on traffic will definitely be something.

RichardAnd

11k over budget is nothing in the grand scheme of things, especially these days.

400 apartments is a lot though...

mr_ak

https://www.boards.ie/discussion/comment/121675697#Comment_121675697

The house is at such a location from the apartment site that the traffic won't pass from in front of the house. The entrance and parking are on a different lane than what the house is on. So that doesn't seem like an issue. But having 400+ new residents in such a vicinity is also a negative factor to be considered.

I chose the area because one- it's south Dublin and I've always lived here, love the house and the build quality, not a fan of the exterior but love the interiors.It's close to Dundrum and Sandyford and the Luas as well. Parks, schools and shops nearby so the area checks most boxes for me.

One of my major concerns is the impact of these apartments on the resale value in the next 5-6 years since I might consider selling the house then. But then again, the housing demand is too much to have a major impact on that.

mr_ak

https://www.boards.ie/discussion/comment/121675794#Comment_121675794

Right, agree with you and @herbalplants

There are apartments everywhere now, I was considering buying a new 3-bed at the same price in Cherrylane, Cherrywood considering all that was planned for the area but they've been slowly changing the plan to just build more apartments instead. 😕

J_1980

Price sounds cheap and good vfm for the general area if it’s the development/house (B..) I think it is.

Apartments don’t really matter - There isn’t much money to lose for a turn key 4bed from a 700k base.

RichardAnd

https://www.boards.ie/discussion/comment/121675879#Comment_121675879

Realistcally, if there's a scrap of spare land anywhere near you in Dublin, it's a safe wager that there will be apartments built there in the next few years. In that sense, even if you didn't go ahead with the sale here, you could have the same issue elsewhere.

Furze99

https://www.boards.ie/discussion/comment/121675854#Comment_121675854

You 'love the house' but thinking of moving in 5-6 years? Sounds kinda at odds.

With the way the world is these days, who knows what the economy or demand will be like in 2 years, never mind 5.

JVince

If its a 3 story house you may find it will feel small. 400 apartments will see it as a building site for 2-3 years.

assuming you are not availing of gov grants, I'd look in more established areas and at that price bracket I particularly like this

https://www.myhome.ie/residential/brochure/309-hawthorns-road-wedgewood-sandyford-dublin-16/4769529

Very mature estate. Would have had its share of brats over the years, but all grown up and its now a very quiet area and everything is on your doorstep.

Princess Calla

You don't spend that amount of money with the idea of moving in 5 yrs.

Alot of my friends bought during Celtic tiger and it was pretty much "anything will do just get on the ladder" roll on a few years, weddings , babies and then the crash. They were stuck in negative equity houses/apartments that didn't suit their needs.

You've an enviable budget so buy with thinking this is long term. Of course circumstances may change, but don't drop that amount of cash on a "meh"

mr_ak

https://www.boards.ie/discussion/comment/121676113#Comment_121676113

I liked this house as well, was just looking at the ad yesterday but seems like it's going to go way over asking given all the work done on the house.

The max I can go is 690.

JVince

https://www.boards.ie/discussion/comment/121676058#Comment_121676058

I don't see that. I've "loved" most of the houses I've bought and sold over the years especially one I had in the UK and one I had in Rathfarnham. Once I knew I was likely to be in an area for 4/5 years I always bought. (Now in the same house for 19 years and 18 months left of mortgage - always knew it would be the long term one)

Sums might not add up as well as they used to, but on a 700k house the non returnable costs are about €25-30k (stamp duty, legal fees for buying and selling, selling fees). Renting such a house would cost at least 180k-200k for 6 years. Interest costs will be about 120-130k (interest and loss of interest on any non mortgaged amount).

So about 30k-40k advantage if house prices stayed the same. If price dropped 40k, you'd be even. All this is back of envelope figures, but good rough ballpark.

mr_ak

https://www.boards.ie/discussion/comment/121676511#Comment_121676511

Exactly my thoughts and I'm planning on giving an extra downpayment with a lower loan term so would save on the interest as well.

These houses were sold for 450-470k in 2018. So gives me hope given the current situation. It's a risk but I'm willing to take it

JVince

https://www.boards.ie/discussion/comment/121676597#Comment_121676597

if its the one I'm thinking you are looking at (3 story & artificial grass out back), I think its overpriced. I'd wait and see what comes up in February when there are usually a lot more listings. The potential of a large building site across the road for 3 - 4 years would put me off

Summer2020

https://www.boards.ie/discussion/comment/121676597#Comment_121676597

The 470k listed price on the property price register doesn’t include vat at 13.5% which is on new builds . They were 530k - 535k new.

Furze99

https://www.boards.ie/discussion/comment/121676511#Comment_121676511

It's a lot of money, it's Dublin, it's 2024.. who knows. I could see merit in either paying a fine price for a place that the purchaser likes and knows they'll be there for a good many years or a cheaper place that mightn't be hit as bad if things turn sour. Things go in cycles and all that.

JVince

https://www.boards.ie/discussion/comment/121678107#Comment_121678107

I agree, and you'd need to be there minimum 6 years for the figures to work out.

Once you are not overly dependant on mortgage finance price changes make little difference as a subsequent property would have risen/fallen in tandem.