awec wrote: » I think you need to re-check your facts here. If all the money he pays goes against the property price, then the developer has essentially given your mate a mortgage with a 0% interest rate, and is losing a lot of money. There is no way this is happening. A developer builds a house, and is willing to wait an indefinite period of time before seeing any return whatsoever. Your mate is spoofing you.
neutral guy wrote: » The property prices started falling and lets see what gonna be next.There will be various options in future I am sure .
neutral guy wrote: » Win-Win from all sides.
Cyrus wrote: » its bland and uninspiring and id suspect relatively cheaply done, it wouldnt impress me at all.
The_Conductor wrote: » Nope. Developers do not get the same types of terms on their loans from lenders- as do people who buy houses to live in them. A typical mortgage might be for say 3% (give or take). The developer meanwhile is paying 10-11% on their working capital- with strict covenants including a timetable on selling the underlying asset and a repayment schedule for the loan. Back in 2016-2017- the cost of this finance could be as high as 15-16% - mitigated from the developer's perspective by the fast turnover that he/she has for completed units. Property developers are not setup (financially) to leave assets hanging around gathering dust- esp. when a 300k value property could be costing them 30k in interest- whereas it would only generate 10k of interest for a purchaser. And further- why allow a prospective buyer get any upside of an increase in value of a property- but none of the downside of potential falls in the value of the property- enabling them to simply walk away- handing the property back to the developer- who now can't sell it as 'new' any longer- and all the tax benefits for a prospective purchaser are extinguished- aka the developer would have to sell it at perhaps a 40-50k discount on the new purchase price (ignoring any changes that may have happened in the property market in the intervening period of time). The only possible way of making this work- is to set the 'rent' on the property at a level at very least commensurate to 1) the developer's cost of servicing the debt associated with the asset and 2) the expected 'discount' that the prospective buyer would receive from the developer. This sort of scheme- is so incredibly one sided- and stacks considerable costs and risks on a developer- I'd argue that any developer would have to be clinically insane to consider such an arrangement- it just doesn't stack up. If a prospective buyer cannot afford to buy a property- they have not right to expect the sort of bribery that you're describing- and further- they would drive the developer bankrupt before they knew what was happening.
Mic 1972 wrote: » Every house can be relativity cheaply done if you only look at MyHome pictures. The picture are also showing that the house was lived in and that it hasn't just been done up for selling, which might be evidence that renovations weren't cheaply done. As for the style, anything can be said about it except it's bland. It's very definitively done with style. Bland is any newly built 4-bed showroom house.
neutral guy wrote: » Developers does not work with banks as they did before They simply make IPO and getting money from market Or simply getting investors Classic bank lending does not work anymore and banks avoid invest into builders business. The builders does not getting loans from banks same easy as they did before. Today REIT invest to Glenveagh property not the banks And Glenveagh getting money from investors not from banks Due with this buyer does not have to go to bank anymore,he dealing with private investment structure which take own risk working with property and bank play his role only if they would like to step in.
schmittel wrote: » It also tends to be the segment that sees price drops first when the market corrects. Hence seeing much bigger drops in DLR since 2018, those houses in Sandymount I posted a few weeks ago, developers cutting prices at top end etc etc. This is exactly what happened last time.
Hubertj wrote: » I think the quality of some of these high end developments Has been a problem So people who can afford them won’t pay the silly money for an average product. Remember these places in Blackrockhttps://www.myhome.ie/residential/brochure/30-temple-park-avenue-blackrock-co-dublin/4427504
The_Conductor wrote: » Statistics from the Central Bank here:https://www.centralbank.ie/docs/default-source/statistics/_ie_financial_statistics_summary_chart_pack.pdf As of Q1 2020 - 48% of all finance advanced by Irish financial institutions is to the property sector- including financial intermediation this accounts for 49 billion Euro. Consumer debt meanwhile accounted for 28 billion Euro. Irish Financial Institutions are most certainly funding property development in the country- albeit under a tough regulatory regime. Meanwhile the REITs have been cashing out, to different extents and for different stated reasons- for over 2 years- with their shares almost across the board, trading at less than the book values of their holdings (looks like shareholders are a better gauge of the Irish property market than REITs are). Your suggestion that REITs (and others) are simply tapping the stock markets- does not make sense- when the stock markets are insisting on discounting the book value of the assets underpinning the offerings- most REITs and property developers- are finding it cheaper to borrow from financial institutions- than to book the discounts that shareholders have been insisting on (for quite some time). No good deed goes unpunished.
neutral guy wrote: » Day before yesterday we was talking about when recession will come and will property prices will fall or not Yesterday we found that recession came Today we see prices falling I dont try be right there or over there because I am neutral Lets seat and look what gonna be next Yesterday tax payers had pay for government help to the banks Today we can watch investors who government will not help Lets look how investors will help them self
Tim Kenny, Group Finance Director of Cairn, commented: “We are delighted to have put this substantial and flexible new debt facility in place and continue our strong relationship with AIB and Ulster Bank, as well as building on our banking partners with the addition of Barclays and Pricoa. The new facilities will support the continued growth of our business as well as reducing our finance costs and extending the maturity profile of our debt.”
Pat Crean’s Marlet Property Group has secured €65 million in development finance from AIB to fund the construction of One Lime Street, a new scheme of 216 apartments it is delivering in Dublin’s south docklands
Mic 1972 wrote: » Have property prices started falling tho or is it the usual speculation? I did a viewing today for a 1bed in Smithfield. By the time i got there there was already an offer "almost finalized" at asking price. Needless to say the place was bits and in need of complete renovation
fliball123 wrote: » Where are you seeing prices falling?
The_Conductor wrote: » Asking prices are falling- I'm not clear whether achieved prices are though. On average asking prices in the greater Dublin have seen reductions of 6%, year to-date. However, thats asking prices.
Pat Crean’s Marlet Property Group has secured €65 million in development finance from AIB to fund the construction of One Lime Street, a new scheme of 216 apartments it is delivering in Dublin’s south docklands .
fliball123 wrote: » That argument again thats asking price as you state the CSO and Property price register (which are of actual selling prices) are showing no decrease in price up until the end of August? Look at the last 200 price changes in myhome 1/4 are showing a price increase and how many properties are not showing a price change at all when it comes to asking price. As you say we are in a recession but as of yet there is no proof of prices actually dropping YET
PropQueries wrote: » You do have a point. But the banks appear to have being getting greedy again over the past couple of years and wanted their slice of the action. As always, the old Irish banks are late to the party. They entered the market late last time as well after letting Anglo etc. take an increasing share of the market.
cubatahavana wrote: » https://www.daft.ie/12690251 Am I missing something?
awec wrote: » Half an acre site.
awec wrote: » Almost half an acre site.
cubatahavana wrote: » Being used to life in an apartment when I grew up and buying my first house now, this doesn’t make much sense to me. Unless you’re planning to expand the **** out of that house, in which case you’d still need planning permission. Location doesn’t seem to be the best with all the cherrywood development right there. Maybe I’m wrong
