Advise on how much to offer- Castleknock and Stepaside

Just visited a duplex in Annfield in Castleknock and I’m considering making an offer.

As rule of thumb, what % should you reduce the asking price by? The property is advertised as €215k, my budget is €200k (obviously do not want to buy at that price). I expect a rejection of first offer, but I do not want to offer too little that they practically laugh in my face, you know? I do not want to wait for ‘this time next year’- I’m ready to move into my own place in the next couple of months.

I’ve also an option to buy a 2 bed apartment in Belarmine, Stepaside for €200k, reduced from €235k. Do you think this is a fair price and should I push for them to include flooring and tiling (as brand new) at this price? Do you think it can go lower?

I’ve definately made my mind up about buying, but what too are your thoughts on duplexes? I’m thinking that I’m not going to live there forever, so thinking about appeal to possible purchasers in a few years time…

Thanks a mil for any advise

Are there management charges? If there are then its not going to be appealing in the future.

You want your own place, so rent. You’ll join the ranks of those in negative equity immediately if you buy now. You said you dont want to live there forever but in Negative Equity you cant move so why would you buy before the market has stabilised?

Daft is showing 4 properties for sale in Annfield, and 1 for rent. How many units in total are in the development?

Daft is also showing 53 properties for sale in all of Stepaside (most in new developments like Belarmine), and 23 for rent. Of these, 13 sales and 5 rentals are in Belarmine. Note that 3 of those sales listings are for multiple units, suggesting the developer is still selling as well as OO’s and BTLers. So there is almost certainly north of 20 properties for sale in Belarmine and conceivably very considerably more than that. My guess would be 30+, based on the 10 we know are for sale by OO’s/BTLers and given the developer’s 3 ads for multiple units are bound to add up to 20.

On management fees, it’s most odd. Only 2 of the 10 properties for sale mention a MF. The developer’s 3 “multi unit” ads have no mention of MF. Of the two citing a MF, this one says €1300pa:
daft.ie/1325402

…while this one says €450pa:
daft.ie/1443880

Huh? Different management companies within Belarmine? Or perhaps some parts are on council land rather than private development land? Different fees for different property types? No idea.

The developer also indicates that each property does not yet have a BER:

daft.ie/1450974

All in all, I couldn’t recommend a barge pole long enough on either location. There is just way, way, way too much noise in amongst all that lot to allow you come to a reasonable decision on whether you’re getting a good deal or not. I should also say that a quick look at yields suggests to me that €200k for a Belarmine 2-bed is too much. 2-beds are *asking *€1000 at the moment. That’s not good if you’re buying at €200k. All just IMO as an amateur.

I know it’s not what you want to hear but if you buy with a mortgage now you will have no choice whatsoever about how long you will stay there. If it’s in negative equity and you can not pay the difference you can not sell.

If you were looking at a property that you would want to live in for the rest of your life, or at least until you desired to downsize in old age, buying now would not be completely ridiculous. But when it’s a property you only want to be in a for a few years, you will be quite frankly destroying one rather important aspect of your life.

IMO your mad, drive around stepaside/sandyford/carrickmines at night & see how many lights you see on in new apartments, feck all, there is 1000’s upon 1000’s of empty apts all over the place out that direction.

EDIT: Is this what your looking at? affordablehome.ie/My-Local-A … rmine.aspx I wouldn’t entertain those bullshit prices, MASSIVE oversupply in the area…

What about 200 times monthly rent here?

Or 12k p.a. giving a 6% gross yield. Okay assume 11 months actual occupancy, becomes 5.5% gross. Stick it in a bank you won’t get 5-6% gross.

My first offer would be a bag of beans. I’d remind them there were 350,000 spare houses sitting idle.

I think the problem is that €1000 is only the asking rent not the clearing rent, and the 5.5% yield figure is gross on a depreciating asset. I think for an investor that would be too tight.

But I see your point and think this would make sense though: €9000 pa (€880*11) for a 6% gross yield at €150,000. That reduced annual income allows wiggle room for costs of ownership and voids.

Meh, there’s still a 25% difference between those two scenarios. I think when an investor thinks about this they’d be far more likely to hold back till it gets closer to that €150k figure.

^^^ This is all entirely speculative based on pulling numbers out of my ass BTW. I wouldn’t want OP to think I have some special insight.