Boards.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more x
Post Reply  
 
 
Thread Tools Search this Thread
13-05-2019, 22:22   #16
riclad
Registered User
 
Join Date: Nov 2011
Posts: 6,257
if you want to live in a city ,in a certain area ,
you may have no choice, as a first time buyer .
Buy an apartment or buy nothing, houses are going up in price.
my friend bought a 1 bed apartment,
she was happy to live there .
it went up in value before she sold it.
She could have bought a house ,
she choose to buy an apartment .
the management fee,s are 1000 per year .
I would stay away from buildings with lifts they tend to have high
management fees
.
The trend is young people will find it difficult to buy 3 bed house in dublin if they are on the average wage.We are in a housing crisis ,
the time when there are enough house,s in citys for all potential
buyers is long gone.
IF you live in a rural area you may be better off buying a house
if you can afford to do so, versus buying an apartment.
Apartments tend to be close to bus routes and shops .
everyone is different ,
buying a one or 2 bed apartment is a good investment for some people .
riclad is offline  
Thanks from:
Advertisement
13-05-2019, 22:44   #17
Fiftyfilthy
Registered User
 
Fiftyfilthy's Avatar
 
Join Date: Dec 2018
Posts: 485
Quote:
Originally Posted by riclad View Post
if you want to live in a city ,in a certain area ,
you may have no choice, as a first time buyer .
Buy an apartment or buy nothing, houses are going up in price.
my friend bought a 1 bed apartment,
she was happy to live there .
it went up in value before she sold it.
She could have bought a house ,
she choose to buy an apartment .
the management fee,s are 1000 per year .
I would stay away from buildings with lifts they tend to have high
management fees
.
The trend is young people will find it difficult to buy 3 bed house in dublin if they are on the average wage.We are in a housing crisis ,
the time when there are enough house,s in citys for all potential
buyers is long gone.
IF you live in a rural area you may be better off buying a house
if you can afford to do so, versus buying an apartment.
Apartments tend to be close to bus routes and shops .
everyone is different ,
buying a one or 2 bed apartment is a good investment for some people .

Thanks, with all due respect the question I was asking was in regards to the sink funds (or lack off)

Pros and cons of apartment living isn’t what I’m querying
Fiftyfilthy is offline  
14-05-2019, 11:21   #18
partyguinness
Registered User
 
partyguinness's Avatar
 
Join Date: May 2008
Posts: 6,533
Bottom line OP is that if there is no sinking fund and major repairs are needed then all the leaseholders will have to cough up to pay for it and that's where the fun starts.

You will find some leaseholders will simple not pay or they will query everything and the whole situation becomes intolerable drags out for years and all the while the work is not being done and getting worse.

All assuming the insurance does not cover it which it wouldn't in the case of normal wear & tear.

The biggest most expensive repair will be the roof if not elevator.
partyguinness is online now  
14-05-2019, 11:52   #19
 
Join Date: Jan 2019
Posts: 900
Quote:
Originally Posted by riclad View Post
if you want to live in a city ,in a certain area ,
you may have no choice, as a first time buyer .
Buy an apartment or buy nothing, houses are going up in price.
my friend bought a 1 bed apartment,
she was happy to live there .
it went up in value before she sold it.
She could have bought a house ,
she choose to buy an apartment .
the management fee,s are 1000 per year .
I would stay away from buildings with lifts they tend to have high
management fees
.
The trend is young people will find it difficult to buy 3 bed house in dublin if they are on the average wage.We are in a housing crisis ,
the time when there are enough house,s in citys for all potential
buyers is long gone.
IF you live in a rural area you may be better off buying a house
if you can afford to do so, versus buying an apartment.
Apartments tend to be close to bus routes and shops .
everyone is different ,
buying a one or 2 bed apartment is a good investment for some people .

Was that a poem or a post?
Phileas Frog is offline  
14-05-2019, 12:04   #20
voluntary
Registered User
 
voluntary's Avatar
 
Join Date: Mar 2019
Posts: 866
Get a good surveyor to write down all the issues with the property so you know what expenses can be expected.
Sinking fund value without the context is irrelevant. One place may require a lot of investment, another place will not.

Would you rather buy an aparment with 100k sinking fund, which however require 200k work or would you buy one with no sinking fund in a good condition and no structural issues?

Also, the fund size needs to be divided by the numer of homes to share the pot.

Large structural issues and/or fire safety issues in apartments usually cost no more than 5-10k per aparement to rectify. Compare that to structural issues in houses, where rectifying may go up to 70-100k and no funds/gov willing to assist.
voluntary is offline  
Thanks from:
Advertisement
14-05-2019, 12:47   #21
Fiftyfilthy
Registered User
 
Fiftyfilthy's Avatar
 
Join Date: Dec 2018
Posts: 485
Quote:
Originally Posted by voluntary View Post
Get a good surveyor to write down all the issues with the property so you know what expenses can be expected.
Sinking fund value without the context is irrelevant. One place may require a lot of investment, another place will not.

Would you rather buy an aparment with 100k sinking fund, which however require 200k work or would you buy one with no sinking fund in a good condition and no structural issues?

Also, the fund size needs to be divided by the numer of homes to share the pot.

Large structural issues and/or fire safety issues in apartments usually cost no more than 5-10k per aparement to rectify. Compare that to structural issues in houses, where rectifying may go up to 70-100k and no funds/gov willing to assist.

I am thinking of leaning towards this train of thought. Pay for a surveyor to check the roof and structure and see if ok for next amount of years and take gamble that nothing happens in between

Could be foolish but if I don’t buy my mortgage approval runs out next month, I’m over 40 and have no where for us to live
Fiftyfilthy is offline  
14-05-2019, 14:13   #22
Jaster Rogue
Registered User
 
Jaster Rogue's Avatar
 
Join Date: Mar 2019
Posts: 175
Quote:
Originally Posted by Fiftyfilthy View Post
I am thinking of leaning towards this train of thought. Pay for a surveyor to check the roof and structure and see if ok for next amount of years and take gamble that nothing happens in between

Could be foolish but if I don’t buy my mortgage approval runs out next month, I’m over 40 and have no where for us to live

It's easy enough to re-apply for mortgage approval, have your circumstances changed that much since last approval? It's best not to rush into decisions like this when buying property if you're not 100% sure.
Jaster Rogue is offline  
14-05-2019, 14:19   #23
Jaster Rogue
Registered User
 
Jaster Rogue's Avatar
 
Join Date: Mar 2019
Posts: 175
Quote:
Originally Posted by voluntary View Post
Large structural issues and/or fire safety issues in apartments usually cost no more than 5-10k per aparement to rectify.

You can multiply that €5k by 10 if it's related to fire safety:


https://dublingazette.com/news/news-...ch-fire-53839/


Quote:
The 274 homeowners in the apartment and duplex complex were initially told that the estimated cost for remedial work would be around €50,000 each.

Quote:
Compare that to structural issues in houses, where rectifying may go up to 70-100k and no funds/gov willing to assist.

Apart from homebond? Also fire safety issues are far less important in houses, worst case scenario you can get out an upstairs window without much effort, the same jump could kill you from a 3rd floor apartment.
Jaster Rogue is offline  
14-05-2019, 14:57   #24
voluntary
Registered User
 
voluntary's Avatar
 
Join Date: Mar 2019
Posts: 866
50k is bad all right. I remember few previous cases where apartment owners were told to pay just above 5k to remediate fire safety issues. This development must be in need of a lot of work.

Homebonds are for new houses, right? And in force 5-10 years depending on the defect type. New apartments would also be insured.


EDIT: here's another example, 5k per apartment
https://www.irishtimes.com/news/irel...ects-1.3812750
Quote:
Residents have been told that a fire would not be contained within any compartment for more than 30 minutes. They should be able to contain a fire for 60 minutes in order to give residents time to get out safely.

Minutes from the management company’s meetings show that this work – which was due to begin in February 2019 and take four months to complete – will result in a charge of between €4,246 and €6,676 per apartment, or €826,000 in total.

Last edited by voluntary; 14-05-2019 at 15:05.
voluntary is offline  
Thanks from:
Advertisement
14-05-2019, 15:11   #25
Jaster Rogue
Registered User
 
Jaster Rogue's Avatar
 
Join Date: Mar 2019
Posts: 175
Those numbers also assume 100% compliance rate of payment for remedial works. Some owners would have trouble coming up with the money, others would flat out refuse to pay, etc. What happens then - legal route? How much does that cost? This is why I would encourage OP not to rush into something like this just because of an expiring mortgage approval. Caveat Emptor.

Last edited by Jaster Rogue; 14-05-2019 at 15:15.
Jaster Rogue is offline  
Thanks from:
14-05-2019, 19:28   #26
caviardreams
Registered User
 
caviardreams's Avatar
 
Join Date: Jun 2015
Posts: 4,138
Quote:
Originally Posted by Jaster Rogue View Post
Those numbers also assume 100% compliance rate of payment for remedial works. Some owners would have trouble coming up with the money, others would flat out refuse to pay, etc. What happens then - legal route? How much does that cost? This is why I would encourage OP not to rush into something like this just because of an expiring mortgage approval. Caveat Emptor.
If owners don't pay management fees or fees for remedial works etc. they won't be able to sell the property, so ultimately it castches up with them.

Re a sinking find of 300k being achievable (somebody above mentioned it) if there are 100 apartments in a developments, that's 3k per apartment - very achievable over 5-7 years.

OP if it is quite a new development (the last 2 or 3 years) I would not be worried about a sinking find not being set up yet as these things can take time. As an owner you can always table it at the next AGM
caviardreams is offline  
14-05-2019, 20:36   #27
antoinolachtnai
Registered User
 
Join Date: Jan 2003
Posts: 8,682
Send a message via AIM to antoinolachtnai Send a message via Yahoo to antoinolachtnai
Quote:
Originally Posted by caviardreams View Post
If owners don't pay management fees or fees for remedial works etc. they won't be able to sell the property, so ultimately it castches up with them.

Re a sinking find of 300k being achievable (somebody above mentioned it) if there are 100 apartments in a developments, that's 3k per apartment - very achievable over 5-7 years.

OP if it is quite a new development (the last 2 or 3 years) I would not be worried about a sinking find not being set up yet as these things can take time. As an owner you can always table it at the next AGM
A development may have a lot of debtors. If it does, when these debts are finally collected, there may be a surplus of cash.

Then again there may not! But you have to look at the balance sheet in its totality, not just at the sinking fund line.
antoinolachtnai is offline  
14-05-2019, 21:06   #28
Fiftyfilthy
Registered User
 
Fiftyfilthy's Avatar
 
Join Date: Dec 2018
Posts: 485
Quote:
Originally Posted by caviardreams View Post
If owners don't pay management fees or fees for remedial works etc. they won't be able to sell the property, so ultimately it castches up with them.

Re a sinking find of 300k being achievable (somebody above mentioned it) if there are 100 apartments in a developments, that's 3k per apartment - very achievable over 5-7 years.

OP if it is quite a new development (the last 2 or 3 years) I would not be worried about a sinking find not being set up yet as these things can take time. As an owner you can always table it at the next AGM

New mgt company in place this summer

They have already reduced insurance and bins charges going forward and started a sink fund from June 2019

There are 218 properties in the estate

Estate was built 2002 so would be expecting wear and tear

Still thinking it over
Fiftyfilthy is offline  
14-05-2019, 21:12   #29
listermint
Registered User
 
listermint's Avatar
 
Join Date: Aug 2007
Posts: 25,487
Who in their right mind would buy any apartment with no sink fund in place.

With the level of issues with builds in this country over the last two decades. From roofs peeling off in storms, to owners having to patrol halls at night in rotation for fire watch protection. Then there's basements and all that lovely water related issues.

You'd want to be off your rocker to do it. Biggest single transaction in your life and you'd listen to someone on the internet giving you odds of how alright it can turn out ...
listermint is online now  
14-05-2019, 21:21   #30
antoinolachtnai
Registered User
 
Join Date: Jan 2003
Posts: 8,682
Send a message via AIM to antoinolachtnai Send a message via Yahoo to antoinolachtnai
Quote:
Originally Posted by listermint View Post
Who in their right mind would buy any apartment with no sink fund in place.

With the level of issues with builds in this country over the last two decades. From roofs peeling off in storms, to owners having to patrol halls at night in rotation for fire watch protection. Then there's basements and all that lovely water related issues.

You'd want to be off your rocker to do it. Biggest single transaction in your life and you'd listen to someone on the internet giving you odds of how alright it can turn out ...
If there is significant wear and tear on the roof of the building or there is a lot of work to do on fire or mech elec systems, the existence of a sinking fund won’t necessarily save you. By way of example, a thirty unit purpose built flat roofed development built in late 60s without lift which has 250 euros per year per unit committed to the sinking fund since the Act will only have 45000 euros in the fund. Doing the roof and upgrading the fire doors and fitting a fire alarm will cost at least twice that.

You need to look at the overall picture.
antoinolachtnai is offline  
Post Reply

Quick Reply
Message:
Remove Text Formatting
Bold
Italic
Underline

Insert Image
Wrap [QUOTE] tags around selected text
 
Decrease Size
Increase Size
Please sign up or log in to join the discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Share Tweet