I have noticed that there have been alot of substantial falls (circa 20%) in the price of 4-5 bed one off houses in the surrounding areas of the towns in west cork where I am looking to purchase lately. Also a sizeable number of decent houses at relatively low prices have come onto the market lately.
I have being waiting for these falls for some time and am close to purchasing now that I can afford the type of house described above.
I have two questions.
What affect has the pending introduction of the property tax had on these type of houses? i.e. Are the owners of these homes getting scared that they will have to pay big property taxes next January and thus want to offload now?
Would pinsters advise taking the plunge now for a good house I can afford using 30% of after tax income to service a 30 year mortgage, or wait till the property tax is introduced to see what effect it has on the market?
I would think most of these one off houses where built on the back of borrowed money from small business people wanting a decent family home,and not knowing what the future truely holds.
So price drops are inevitable in this area and it is hard to deliver market value for the vendor in these times.
Regards the impending property tax.
I think there will be a flat charge regarding one off-housing,and regards an overall tax on an average household i think 240-270 with an extra water charge which could be anything.
So its up in the air,but I cant see mad charges which would only result in massive default.
I’ve noticed the same thing happenning in wicklow and wexford. Price drops have really accelerated on large houses (5/6 bed - >3000 sq ft) in the past 6 months.
Increases in fuel prices (for both heating and transport) must be a big factor here. The prohibitive cost of running a large house miles from town will weigh heavy in the coming years.
Big one off houses are the equivalent of your 3 litre petrol 4x4
When things were bubbling along all was fine
When people see how much the cost to run in the Great Recession, few people wants them and few can afford to run them
This will not change in the coming years so much further to fall with the possible exception of those within 1/2 hr of cities.
Way out the country builders could afford them and build them…then you had de riguer his n her LWB Trooper or Pajero out front and d’electric gates too. Around €20 in petrol to mow the lawn on the drive on nowadays.
His n her are in Australia now and his is out in the mines 4 weeks out of 8 an her in Perth with some family sized bus. They won’t be back in a hurry I am sorry to say.
Met a guy in Australia last year staying in a hostel. He was earning $110k at the mines and he was only working on the admin side of things. When he was on holidays he just crashed in hostels to save money. They could be back sooner than you think if they lived frugally enough. That’s assuming of course that they want to come back.
300,000 is a lot of money. Add another 100,000 to nicely floor, tile, furnish and landscape. That brings you to 400,000. Then anything from 70,000 to 600,000 for a decently located site. Total of 470,000 to 1 million.
It’s still cheaper to buy, although what you buy won’t be your ideal house design.
Alot of interesting ideas raised. I agree that purchasers and EA’s in rural Ireland are waking up and smelling the coffee as was mentioned and prices are becoming more realistic.
I also think that people are looking at the costs of living in a one off house in the countryside. When one considers the cost of transporting adults and children to work and school/activities, the cost of maintaining a large house and gardens etc it starts to look less attractive compared to a smaller house in town at a similar price.
But I think that the upcoming property tax might be the trigger that is pushing some vendors to lower prices aggressively to try to get out before it becomes clear just how much people will have to pay. If it is a sitevalue tax alot of these houses on an acre or more might seem less attractive again compared to a smaller house in town on a smaller house on a small site even though the price per acre in the town might be more than in the county.
Okay fine, but the thing that doesn’t usually get mentioned is that living in an estate with the latest housing densities can be very very difficult because we have not yet developed ‘mature’ social norms/rules about behaviour that need to go with having to live that way.
So, a one-off house has HUGE advantages too (I speak from bitter experience).
Those bitter experiences of housing estates are what made me want to live in a one-off house in the country in the first place and I see the advantages of it for sure, it is just the additional costs I am trying to work out and then their knock on effects on the price of the asset.