"I'm Panicking over slow property sales"

Writes someone in Galway to the Galway Advertiser business advice guru.

Its the banner headline on Page 2 of the business section corresponding to about page 88 of the Digital Edition available here .

He built 10 semis and sold none yet it seems. That will cheer the local specuvestors up no end.

The guru suggests a few things like dropping the price for example !!

Mods: you know this “no glee” policy - is it applicable in all circumstances?

Oh definitely. These guys have families you know.

This is very ‘undiplomatic’ language for a newspaper that is very very heavily reliant on property advertising , more so than the Times even !!!

Were it in the Tribune it would be less surprising, to me anyway .

hope this isn’t too big.

https://img391.imageshack.us/img391/6498/050208wl1.jpg

Seems to me like the advice they are offering is to sit tight/renegotiate/refinance unless he has to offload 1 or 2 units to stay afloat until things pick up again :stuck_out_tongue: .

Pretty bullish (bullish = shit) advice if you ask me (yeah I know no one did)

Now that is a lesson in leverage. If I was the bank, I’d force this guy into liquidation and line up someone with deeper pockets to purchase the lot. This guy is way too high risk to be negotiating with.

Thats a sad story the small guys will really be suckered the most.

Its such a pity that pervading attitude and accepted wisdom would have led people into a misplaced state of security. The “sure thing” that it wasn’t.

Its like when you hear about those at the top being surrounded by yes men as there career collapses. We know the stereotype, well when it comes to property the nation was a “yes-men” state.

This is alaso a perfet example of why we have the non-glee po9licy and it was predicted that such cases would arise as this was a mindless mania.

We must be respectful of those who walked into this surrounded by a highly uninformed society as outlined above, as opposed to the big players who will only compound the smaller outfits in the scale- stakes. These players are so elevated by capital & access to resources that its their primary business to always know the market, in many cases they have been the market for so long. So we cannot be expected to feel entirely sorry but more so the innocent casualties.

Its a hard line to hold and a fine one at the best to times. I hope this clarify our ongoing need for humility and are grateful to all posters for respecting this and moderating their comments with some good old fashion home cooked common sense.

*Also to note , the Credit Crunch is not the catalyst for the Irish Property Market collapse or difficulties of those in the property market, the market began to collapse in 2006 we before the real effect of the global credit crunch began. I am starting to see these two logically drawn together when they are no in of themselves directly linked. *

You cannot trust the media at the end of the day, the format is biased by its very nautre. Think about it…

The Advertiser (rag) suggests that the current stock of unsold houses is 60.000. There are 66,4000 properties for sale on Daft.ie alone. Granted some of these are for sites. But then many properties do not appear in Daft at all, and many daft entries are for multiple unit develoments, often for 10 or 20 or more houses/apartments.

He’s fucked.

Anyone figure out the true stock figure? I saw a thread on it some time back.

“Don’t lower the price as when the good times come back other buyer swill wnat the lower price too”

Jesus H! Unbelieveable- that is why houses in Galway are not coming down in price.

I give up.

oh come on, maybe not glee but i certainly don’t feel sorry for this guy! This guy got greedy, and tried to make like he was one of the big boys and was way out of his depth.

He gambled and is about to lose, he does not deserve the sympathy vote IMO.

:unamused:

I wonder how much profit he stands to make? Is it only an Irish thing to worry about people making money after you sold them i.e just sell them now and accept a decent profit (Im assuming the developmwnt could still get a profit back) rather than some supernormal (greed) profit.

Just my view, but then I’m not the one with an unsold development.

Given the kind of profit margins the developers have been trousering in recent years, he can probably afford to cut 100K off each house, sell them all quick, and still come out with enough for a new Ferrari, cash :unamused:

But the longer he sits in looney-tunes Greedville, the more he’s racking up in interest payments, and he could lose the lot and be paying off the bank for the rest of his life.

But developer Wallace did say on primetime that developers that bought expensive land late in the game are feeling the squeeze now, but maybe these are the guys that haven’t yet completed their projects.

Did some proposed sketch schemes for a few developers for some schemes in early 2006 (so that they could work out how many units they might be able to fit on a given site to find out what the site would be worth to them). There was a real ramp up in land prices in early 2006 that actually shocked them. Even based on 2006 prices there was no way the land could be viable.

What kind of person gets into the development of 10 (count them TEN) houses. And then turns to The Galway Advertiser for financial advice when things go wrong?

What is a 3 month intense selling period?
Did he sit by the phone staring really hard at it?

If you haven’t sold even one then you have not been involved in an “Intense” selling period. You haven’t been involved in a selling period of any kind. You’ve been involved in an Intense wishing period. Grow Up.

I didn’t read past the first 2 paragraphs. I’m sure the reply was about what the question deserved.

The question should have been answered in 4 lines.

  1. Stop wasting your time looking for free financial advice, talk to an
    expert. You get what you pay for.
  2. Drop your price.
  3. See 2.
  4. Stick to the day job (if you can get it back).

-Rd

Question:

*I was a salaried employee up until 18 months ago. I took voluntary redundancy and used the money along with some other
funds to fund the deposit on a residential site with planning permission
for ten semi detached houses. I funded 90 percentage of the purchase price with a bank loan.

The units all complete, are not selling despite a three month selling period and I am
Becoming very concerned that the bank will foreclose the loan if I don’t get some sales.*

**The question was written up by someone from within the paper itself.
**

I don’t see a question mark so I assume you have information. Please tell us more…

**The question was written up by someone from within the paper itself?
**

Ok???