Ah but Dunshaughlin is different.

I have been watching this market closely over the last 18 months. Prices are slooow in coming down, in recent weeks however I thought I noticed a little more reality in this small market. Until today that is.
I’m not interested in buying this - but I am interested in your views to assure me that I am not insane in thinking that this house, marketed today, is overpriced.
Thanks

daft.ie/1451039

Half A Mill, Give or take. ??? :open_mouth:

You are not insane. Trust yourself.

Trying to decipher the EA waffle on this one, does “…with front reception rooms overlooking a large green area” just mean the house is across the road from a field?

For 140sqm in Dunshaughlin I’d be prepared to offer €136,800. I would then rent it out for €740 a month on a 6.5% gross yield.

If you could get someone to rent it, Dunshaughlin is only a crossroads and a fork in the road with horrendous traffic morning and evening for anybody commuting. I think the EA had drink taken when doing up this ad. :unamused:

They could of at least cut the back lawn!

Looks very similar to some houses near me, if they are the same plans then the third bedroom upstairs is no more than a box room suitable only as storage or a baby’s cot.

The house is well presented but that is nothing more than essential to make a sale these days and adds only to the saleability and not to the price.

€200,000 - €250,000 over priced IMO.

In a bidding war I might be prepared to go as high as €138,000.

This and the high asking price… two extremes me thinks. Some people on this site seem to think the time will come when houses will be given away free with packets of cornflakes. There is realism required on both sides.

My offer is based on 15 times annual rent as an investment property. I don’t think that’s extreme at all. What’s the €450k based on?

Agreed - 138 would be 2.5 times salary for someone on 55K?
Or if you take a 2.5 x primary earner plus 1 x secondary owner, that would be a couple where one earns 45K and the other 25K?

Sounds about right to me for a good-sized family home in the outer suburbs?

Bring in a property tax and properties in certain areas would be so undesirable that people would refuse to buy Cornflakes.

If you had told people a few years ago that you could get perfectly running cars for free they’d have laughed at you. But it happens. Indeed in many cases you can’t give them away.

-Rd

Thanks for the replies - thought I was losing it for a while there. I’m going to rename it Dundalkey, or Dunkilliney…Or even Dunshocklin - which is what the house prices are - shocking!!

Not reality, that’s for sure. However, I think it’s a mistake to always value property based on investment yields. Large scale investment in Irish property is a relatively recent phenomenon. Owner occupiers make decisions to buy for many reasons, rarely investment yield.

The problem is that we don’t value on investment yields. We have “current market value” - very acceptable when prices are on the way up - less acceptable on the way down.
A lot of the property on the market in Dunshaughlin for example, is languishing for over 12 months. So the “current market value” is lower then what they are marketed at, that’s how I see it anyway.

I’m happy with €138k using my 15 x rent or Tbears salary multiple valuation method. Its a fair valuation based on reasonable IP or OO criteria. It is not extreme.

€450k, on the other hand…