Builders mothballing properties

I heard at the weekend from someone who works for McNamara’s that they were mothballing a large amount of finished properties rather than put them on the market and sell at a loss after all costs. In some cases these are completely finished developments, in others they are 90% complete where they’ve let the contractors go and just boarded up the site.

I wonder how many more of the big builders will (or can afford) take this approach? And how long can they really adopt this strategy before it starts to bite?

This plan won’t work either. Nature, vandals and the homeless amoungst other things will start to depreciate these properties.

It also means that at the first hint of an upturn there will be a stash of property ready to go so there will be no repeat of the panic building we saw in this boom.

I’ve seen this first hand - large(ish) development near where I live has been ready to go for at least 8\10 months. 1st phase was sold out in 1 day almost 3 years ago. Curiousity calls to the agents don’t reveal much " in discussions with the developer about pricing " Apparantly the small retail section will be let out before the rest of the residential stuff is released.

We shall see how long the banks let them do this if borrowings attach to this property.
It strikes me as stupid really because the market will not achieve anything going forward as the prices achieved up to 2006, that dog is dead and common sense would tell you to cut and run as there are no more mugs.

Put it this way lets say you’re an investor and made a huge return on an investment for a decade or so, then market goes against you or falls, you might say okay we’ll get out of this and look at other options as we have taken a hit at the end but done very well for a long time so its time to cut our losses and drop the price and move on to fresh fields.

But not these guys, why not I ask my self? Are they too greedy, probably but maybe they are too heavily invested in land banks or committed to deals they cant get out of. Hmmmm smells like possible trouble brewing to me. :open_mouth:

Probably a good idea for pin members to go in and change the locks on these developments - might as well get adverse possession running, and hope the builders won’t notice in the next 12 years.

And if somebody squats in a property long enough don’t they gain legal possession of the property? I can see it now - the market finally starts to come back and developers think “great - I can finally shift those units I’ve been sitting on” only to find an army of well-informed squatters who lost their houses in the bust now own the houses by virtue of squatting there for long enough. That would be pretty heavy on the irony.

EDIT: I just looked up “adverse possession” from the previous post and thats exactly what I’m talking about. Be warned - its pretty dense prose in here: islr.ie/Reviews/2004/adverse-possession.php

You need to be squatting for along-time to have any rights, 10 years or so!

There was a homeless Irish guy in London who had built himself a shack on a small plot of land in North London and had been living there ubdisturbed since 1987. He claimed squatters rights and won. Apparantely he turned down bids of £2m for the plot at the time as his advisors told him it was worth more!

If a sufficient number of members of th same trade organisation (CIF) are seen to be acting in concert to attempt to radically distort the market, could that not be considered a cartel in operation?

Stiff penalties for that from what I remember.

Good point!

Sorry I have to apologise for that last post, forgot what country I was living in :frowning:

Now THAT is a Canny property speculator.

And I’ll bet many of the Irish Smart and Ballsy types in London for a weekend with a wedge of equity released from ther semi-D would have passed this guy on the street and looked down their noses at him.

-Rd

I thought there was no such thing as squatters rights in Ireland.

I remember that, I saw it on the news.

GOOD ON HIM :smiley:

From what I saw of his case he wasn’t interested in money. He just wanted to be left alone in peace in his £2M+ shack.

Those wankers in that Clontarf golf club could learn a lot from that homeless man.

It does seem slight naieve to be holding property that wil continue to drop for a long time to come but that’s what I was told - maybe it’s as spqr64 says - they’re not doing it out of choice?

Yes there is - look up adverse possession above.

Note it takes 12 years.

A recent case where squatters’ rights were upheld…

Link

Don’t now how the banks will view this

Fagin (Bank Manager) In this life, one thing counts, in the bank, large amounts, I’m afraid these don’t grow on trees…

Oliver (Developer) Where is love?

heard today, a friend’s builder buddy has 200 houses nearly ready to go outside of cork. Won’t finish a house until somebody is going to pay full whack for one. Is quite happy, gone back to the day job of 7 years ago before the “professional developer” disease got him, says banks are putting no pressure on him & are quite happy as he has 70 acres sitting in his back yard. Seems to be blissfully unaware of any trouble brewing with the banks and refuses to part with a house at less than the asking price!. For how long -one wonders- can the banks let people like him keep going?. Interesting times!. :confused: