Abbey Close (aka Abbey Court), Rathfarnham (-825k, -66%)


#41

Eh, Newsflash for Sharper: our banking system collapsed. Anglo and NIB are insolvent and being wound down, the other banks have been nationalised and re-capitalised by the taxpayer. If NAMA was supposed to save the banking system it has failed spectacularly.

It’s managed to save the property development system from collapse, and given jobs to bankers and estate agent valuers. But it’s done nothing to save the banking system.


#42

I think there’s definitely some confusion between the bank guarantee and The Only Game In Town - NAMA going on here.


#43

Banks failing are the essence of capitalism - creative destruction… maybe even the essence of life, nature, evolution…etc.

You cannot have the creativity part without the destruction. You must first destroy the failed institution, to rebuild it.
But this theoritically can be done overnite - bank closes at 5pm, bankrupted, and reopens at 9am with new owners.
(Think to a degree eircom, which is effectivly bankrupt but is still operating; and will eventually be bought by new owners - but is still working to some shape or form)

It would not be painless, the difference is who takes the pain. The shareholders and bondholders would have taken the pain automatically without any(much) need for Government involvement. If necessary the Government could have stepped in with some interim measure to keep the banks open,
maybe an examiner, but without guaranteeing old liabilities except deposits upto an/all amounts and also working capital.

It’s not laizee faire, but deciding that the natural and well understood way of capitalism is best, as opposed to some unknown wacky untried quasi comunist/solicialising debt system, already disowned by its architect Peter Bacon.

And Greece is not an example. They have plenty of time. It’s like a slow motion car-crash.
Nothing is happening ovenight, and nothing would/should have happened overnight with Ireland if it had have been managed properly


#44

Was deposit insurance in Ireland not limited to somewhere around the €20,000 figure?


#45

We’ve wandered off topic here. Can we stick to price drops, and if necessary start a new thread elsewhere for discussing other issues. Thanks! :smiley:


#46

Interesting pricing on the Terrace itself …
€197k myhome.ie/residential/brochu … 14/1772442
and a mind boggling €470k
myhome.ie/residential/brochu … -14/111482

so the smaller house, albeit (new) end of terrace is amost 2.5times the price.

I live in a 4 bed in the burbs in a mixed development with a small back garden, tiny “lawn” at the front but at least it has a decent sized green space. I’d be happy to get 300k for it. There is a lot better out there at over 400k, especially for families.


#47

I think the prices of these are not bad value for the present market or compared internationally, as the huge level of interest proves. New build, high spec, underfloor heating etc. Should be economical to own in the long run.

That they were asking 1.25 million though shows just how nuts our bubble was. Imagine you’d bought one and were now looking at €800,000 of negative equity.


#48

Not quite true.

AIB/BKIR were and are systemically important (the run the ATMS and the deposit accounts).

Anglo itself wasnt. It could have gone to the wall. The government didnt need to bail it out.

Some form of NAMA would still have been needed; but not the massive debt load that we have taken on.

Bear in mind that Irish govts reluctance to sell at current market prices is directly related to its having taken on property assets at considerably higher prices, and the corresponding debt obligation which the govt has taken on relating to those assets. It neednt have done that if Anglo had been let go to the wall.


#49

Thats an interesting point.

However the Irish govt also owns AIB and Irish permanent and a major stake in BKIR.

The govt has a clear policy of non-repossession within those institutions also. And in that case I’d say the number is more like 100,000 homes (or in other words, 10x last years transactions).

You are right of course that, given the position we are in, the govt is better off not flooding the market.

We would be better off if the govt had never made the banks guarantee, and properties were flooding on to the market.

But now that it has made the guarantee, the strategy they are pursuing is (presumably) in the best interest of the state.


#50

People may buy due to the lack of choice - currently, but I can’t see how these are value. Over half a million dollars in real money!

The Irish houyse buyer can dictate the market either way - wait it out for real value, or buy now; both cases become self fulfilling prophecies.
If people accept this standard at this price then that is what they shall get.

My only hope is that the banks shall not give out enough money to allow it, for history suggests that the individual Irish buyer is fairly accepting, and cannot resist the concerted efforts of the EA’s, VI’s property press and pundits.


#51

Its a good point.

I’d wonder how much thinking people do before they buy a house.

Not about the house itself; I’m sure plenty of thought goes into what colour the kitchen will be and what bathroom units will be bought.

But about the finances of it; I would wonder how many people buying a house have sat down and looked at how an amortised mortgage works, the interest schedule associated with it, the front end loaded nature of interest scheduling, the massive impact that even a small interest rate increase can have, the difference in interest scheduling between 15 year and 30 year mortgages and so on, and really thought about the personal commitment you are making when you take out a mortgage.

In continental Europe, my understanding is that its a lot more normal to take out a 15 or ten year mortgage, and to have a 40% or 50% deposit. From a financial point of view, this is a much better model for the consumer, and it keeps prices lower.

I’m fairly convinced that if people really thought about this, then prices here would be a lot lower also.


#52

that 2nd one for 470k has’nt been updated in 3 years but even at 470k 3years ago, it was nuts


#53

Did anyone go last Saturday to another open viewing?
Is it me or did Number 1 just change to a higher price of €450k?

I thought they were all 425? Unusual considering Number 4 is larger in sq ft…


#54

Nope, there was 1 at 450k from the start.
Have’nt heard anything about the latest viewing either


#55

Only one of these houses left according to the agent, the last house is number 2 and currently has an offer of €380k, it has not been accepted yet.

Makes me wonder what a half decent semi d is worth in the are if detached houses are selling for sub €400K.


#56

thanks for the info…I was wondering where things were with these.
I thought they’d fetch more than the 425k/45ok asking prices so I was’nt interested.
But going less than asking is interesting, given the demand that seems to be in this area at present…perhaps the lack of gardens is putting families off


#57

myhome.ie/residential/brochu … 14/1773935

sale agreed today


#58

Any ideas how much?!


#59

none…I have no friends in the EA world!!!


#60

I was keeping an eye on these as they have been on and off market for years and i know the area locally well.

They are all sale agreed now & I found out from someone in the loop that all went for over 400,000 and as high as 450,000 depending on the size.

WAY to expensive imo as they need new everything as the whole inside is just concrete… No thanks!!!