Hi …has anyone bought a residential property at one of the allsops auctions?
I’m aware of some of the pitfalls of buying at auction vs traditional sale …just like to hear from anyone who actually bought a place …did you spend upfront to get a survey done , title checked etc? any tips welcome
Hi …has anyone bought a residential property at one of the allsops auctions?
One of my clients bought.
Just do your homework beforehand.
When you buy at auction there’s no backing out (without losing 10% deposit), so yes, you do ALL necessary work i.e. survey & title etc.
You really need to get the pre title documents beforehand you could be buying a white elephant with wierd titles attached to the property like rights of way etc. Not worth the risk seriously. I have bought at auction and it really is peace of mind.
I can download a legal pack from the allsops site …im familiar with title …what’s “pre title”?
I was advised here not to purchase at Allsop (the first ever)
Bought anyway… no issues, clear title, own the gaff… and bringing a 13.5% return (and rising) (gross)… glad I went with my gut.
When? If you don’t mind me asking?
Did you buy it in turnkey or did it require much done?
Agreed. Bigger risk, bigger reward. I’d fear for Irishblogger’s confirmation bias now though.
Are a lot of Allsop properties not open for internal inspection ?
I dunno something fishy with this crowd, came for a viewing (twice) apparently owner told renter not to give keys, bank selling from under him.
Seems like a complete and utter mess that one definitely doesn’t want to get involved in. Also I looked over their past auctions trying to do homework, no pattern I can see for selling prices anything from no sale to slightly over to double over the reserve prices.
Its a case of risk and reward.
The cons of buying at auction versus the prospect of getting a property below the market value.
Given the steady rise in property prices over the last 24 months its a question of how longer will this rise continue for.
There is no doubt that when Allsops first started their auctions there was some exceptional value available , for example you could buy a 2 bedroom apartment with a car parking space and fantastic rental return in the Dublin Docklands for 140k - these same apartments are now for sale at 300k.
If there is a solid tenant you can take a 9% yield as a good guide of what it will go for.
Current tenant is not there long term, the legal documents seem a complete mess, owner is a property company it seems with bank finally having enough of them and selling
at current rent (seems rather low) and current reserve price the yield is 8.7%
assuming rent is increased to something resembling rents in the area and it sell for lets say 50% above reserve price, looking at 8 to 9% yield still
I was enthusiastic about the alsop offer, but now hell with them, I already found something better yielding and larger in a better area and currently waiting on solicitors to get ball rolling and close the sale
Bank draft only no cash allowed either
Tho bitcoin m-n transaction would be perfect for escrow situation that is present in house sales, also one could store copy of deeds deeds in block chain for all to see, there are startups working in this space
Apols for late reply, in my experience the documents provided by Allsops sometimes have gaps in them, the Solicitor is best advised to interpret these, especially if the building is very old, the title deeds could go back a long way with all sorts of new evolutions etc.
A solicitor usually will do the pre-title checks for you. They go through everything and make sure it is all above board, i.e. you are not buying something that is going to give you a surprise. I got mine done through Dillon’s Solicitors in Rathfarnham, they were doing them for most of the auction properties in the early Allsop days and selling them on mass to potential bidders. It just seemed to make sense to me that I wasn’t buying into some mad lease where Aunty betty had the right of abode until death or or that the back garden was leased as a car park to the local mechanic, or that there is a right of way across your property so you can’t extend because you might be cutting off this access etc. These things can happen especially where investors are involved, where they will accept more complex titles because they are renting and don’t care as it is not a family home or where banks take over and the history of the property is lost and you don’t want Aunty Betty coming out of the nursing home and demanding to live in the attic. I don’t know if Dillons are still doing them but I imagine they are. Really if you are taking a punt on a family home it is not worth the risk. If you are an investor maybe you can live with Aunty Betty but I couldn’t. I personally don’t think that Allsop’s is offering value anymore, I think the prices are pretty much market prices for the times in which they sold.It just so happens to be so much easier than faffing around bidding with auctioneers, technically the sale goes through quickly and no one can back out.
This property propertypriceregisterireland.com … and-40275/
was sold in auction for €82K, I had put an offer in writing on this same property less than 12 months prior for €220K and the EA laughed me out of the town. In high insight the place I am told has plenty of social problems and the property looks onto social housing which from what I am told is looking pretty delipidated now even though they are relatively new builds. Former ex-Fatima mansions rehomed into houses and duplexes some with gardens. And the transition into minding the gardens is taking some effort, with the fences caving in, and gardens being used as dumping zones and rather large Alsatians running in circles barking the whole time. But despite this that is what I call value and I was pretty pissed at finding out.
If the EA had done his job properly at the time, he should have come back to me and followed up my interest. Having said that I didn’t have the €220K at the time, but I had a massive deposit with just a short mortgage to make up. The approval for the balance had expired but I reckon I would have got it with just a bit of faffing around.
With cash and small to reasonable asking prices, an auction purchase makes sense otherwise it is fraught with difficulties. My property came with tenants who had to be given notice to which my solicitor instructed the receiver to give. However I ended up having to pay the tenants back their deposit even though it wasn’t in the contract and the contract stated that it was the receivers job.
I just didn’t want a brick coming through my window as the tenants had moved around the corner and turned up on mass on key handover day expecting me to give them back the deposit which Allsop seemed to have instructed them was going to be the case. I decided I had got a bargain, this could have ended up a nightmare for me, they could have trashed the place, they could have squatted but thankfully they didn’t. The sale was delayed because the receiver faffed around completing the sale due to some legal loop hole that was being tied up about reposessions in the high court. As a result, I ended up getting two months rent free one of which I gave back to the tenants, I then declared the tax on the other month because I wasn’t going to be done on that count either. So it didn’t work out that I skipped all the way to the bank but I got a property that has probably doubled in value now albeit I had months of stress in the run up to receiving my keys. The place wasn’t trashed and the former tenants told all the other polish people in the estate that I wasn’t a bollix and not to put bricks through my windows. So all in all good result.
Good luck Yall!
Many of the points in this thread are unrelated to the question of whether or not Allsops is a good means through which one can acquire a property. Some replies focus on the financial success of buying at Allsops, as a result of extraordinary price rises in the interim. The fact of the matter is, whether you bought through Allsops, private treaty or any other auction, you would have achieved the same results - Allsops didn’t give you a property at 50% off that doubled in value overnight for you while everyone else’s property values stagnated. Having been interested in several properties in Allsops over the years, we didn’t buy any of them - often it was the case that lunatics overbid on properties and paid more than they would have through private treaty sale, hence we stuck to buying private treaty, however we bought at a non-allsops auction also. It was slightly reminiscent of the luxury Merlin car auctions that came with the start of the recession - people seemingly cluelessly paying more at auction for 7-series, S-Class, etc. than they would have in garages with warranties offered and plenty of time to test and inspect - so we stuck to buying in garages then too. When the Allsops auctions first came around, one/two bed apartments were lying on the market for long periods - some for years, with price reduction after price reduction and often you might be the sole bidder - there wasn’t any real need to resort to battling it out at auction. Auctions aren’t necessarily quick either- the last auction we bought from a receiver it was 6 months after the auction date that we received the keys. Especially nowadays, I wouldn’t waste my money with any more Allsops auctions personally - there’s rarely any relative value, or at least enough to warrant the bother of handing out money for legals/surveys with no guarantee of securing your chosen property.
Many of the points in this thread are unrelated to the question of whether or not Allsops is a good means through which one can acquire a property. If this were the UK then auctions be they Allsops or others would have their place in the market. They don’t seem to function here like they do in the UK. In the UK in any market there are bargains to be got at auction, whereas here the country had to be on its knees for there to be value and now there isn’t and the added risk and hoo ha isn’t worth it. I agree with you that private treaty in some cases makes more sense. I hope if I were to ever sell at auction that some bidders would fall in love with my house and bid up a storm, pay over the odds with the prospect of having a quick transaction (ideal world - sigh).
Interesting story, I lived in the area (the new apartments) for a few years and although I never felt “unsafe” (am from Dublin and familar with most parts of the city inner and outer), those streets around there aren’t easy on the eye by any means and renting it might have been hassle for you.
The first one, so there was still a lot of fear and scaremongering in the air… “The bubble has yet to burst, you’d be a fool to buy at this auction”, I was told
Each unit was gutted and completely renovated, although could have been rented as was. However, I like to be proud when showing off a property, not embarrassed.
Just being clear, I considered it an investment, not a ‘win win’, like some people think they deserve. With investment, you have to be willing to lose aswell as win. Work on that basis, and anything positive is a bonus.