tried my hand at a low offer today

apartment for sale 2 bed reduced from 340K to 280K
i know they were selling of the plans end 2005 255K
plenty of them for sale choice is endless so offered 120k for quick sale
laughed down saying the developer will not except such an offer
so replied thats is whats on the table when the developer wants to reduce
the price you have my details you can contact me.

so has anyone one else tried any low offers?

Not yet but I like your style. I’d say give it a year and the developer will be in contact.

That was a bit cheeky alright, i’d not be suprised if they come back with 199,000 as the price though

Yes I’d say 1 year is about right.
Of course that is assuming we stop Gormley bailing out the builder.

I’ve been thinking about this one myself - maybe it’s time to start some “outrageous” lowballing in order to soften up the expectations a bit. I don’t mean that in a mischievous way, I’d be prepared to follow up on my lowball offer.

What I’d be asking the EA there is

  • What would the developer accept?
  • Who has offered that amount? Nobody? Aw shucks!
  • Remind him of the off-plans price, weren’t they the heady days? What’s the outlook now? Sorry Mr. Developer, you won’t see those heady days for another decade or two, that’s for sure!

And of course - sure isn’t 1% commission on 120k better than 1% on nothing - do yourself a favour Mr.EA, get on the blower to the developer and start delivering the bad news, otherwise you’ll shift next to nothing for the next 2 years.

If you said you were paying in cash they may listen. I.e, no mortgage worries.

Good for you nolai. You are very shrewd. Play hardball, you are playing from a position of great strength with all the bargaining power and all the time to exert it. But like other posters said, wait just a little, and continue to build up the deposit.

10% down on €120k over 25yrs at 8.5% is €870/mth. Which is about the absolute best after-expenses cash-flow you could expect from a well located, well built 500-600sqft in Dublin today, and for the forseeable. And before anyone says 8.5% is too high, I’m deliberately using that as a low figure. Besides, 25yr mortgages will be the absolute max and only for some people.

Historically 8% has been used as a yield figure for calculating the Value of Freehold Investments in the UK for many years.

This was because the cost of Capital was more accurately reflected by this figure than a lesser figure.

Cheap money is not likely to be around for ever.

The next decade will belong to the saver

I have to say I don’t think the banks are going to get as stringent with the lending criteria as walktothewater suggests…

It will become tighter, however, I would place a floor price of say, average industrial wage 38k x 5 for any well located, 60 sqm plus (probably more like 70), so about 190k…

You can discount for crap area, bad finishing, smaller apartment size, no designated car parking, etc., as you will.

I can’t see a 58% discount offer being accepted in this climate nolai and tbh, I think it will play out much as my theory above.

I think lending will settle at between 4-5 times income and apartments in Dublin, well-located commuterland will be for singletons and the ubiquitous 3 bed semi will be the destination of choice for couples and those who have managed to amass very large desposits.

I’d probably throw terraced houses and apartments together, tbh.

Ten years ago apartments in Dublin sold for under £40K

Allowing for 4% compound inflation would relate to an equivilent price of €75,000

Construction wages can fall back to the minimum wage.

We need to get used to the concept that houses are an expense, an item that deteriorates with age, not an asset which you can expect to rise in price. Looked at from that perspective, Japan seems entirely rational.

What planet are you on? :open_mouth: Also, your maths is completely wrong.

In 1998 my parents paid £125,000 for a standard three bedroomed semi-d in Lucan. From what I can remember, that was considered a good deal at the time.

£40k in 1993 maybe?
In 1998 the horse was already galloping with regard to price rises.
Also interests rates were higher back then, so this has to be factored in too.

Agreed.

People seem to forget that the cost of living in many regards are actually fallen in the last twenty years. Utilities such as electricity and telecoms have not kept pace with inflation. Also, food is cheap. I can still buy the staples like veg, dairy, meat for not a whole lot more than I did 10 years ago. The same thing goes for electrics and consumer goods. That along with women coming into the work place had the effect of killing the old 2.5x of one income multiple that house prices used to be.

Get out of it :frowning:

12 years ago, 1996 , you may have picked one up in a peripheral , sorry :nin that’s an “Up And Coming” part of Dublin for around £50k .

The average wage back then was much lower of course and taxes were much higher as were interest rates .

Stick to the facts McA willya . I can see peripheral parts of Dublin go towards the €100k mark but only where they are apartments AND are shoddily built AND with dysfunctional or insolvent management companies .

I’d agree with you on everything except this point. Certainly in Dublin there’s a big difference between a 1 bed shoebox and a decent-sized 3 bed terraced house with a front and back garden. Plenty of former council terraces have become popular middle-class family areas - I’m thinking of parts of Milltown, Marino, Drumcondra, Raheny, Ringsend etc. These houses are much closer to the aspirational semi-d than anything in the Grange, and many of them are in far better locations than the semi-ds in Stocking Wood or Stepaside.

Obviously there’ll always be a demand for period terraced houses too - Ranelagh, Rathgar, Drumcondra etc. But I can’t imagine we still see anything remotely like the kind of the premiums paid during the boom for < 1000sqft redbricks with no off-street parking and no garden to speak of.

On the other hand, I cannot fathom the thinking behind some of the terraced houses I’ve seen in rural areas. These are areas where locals traditionally baulked at the idea of living in a semi-d, let alone a mid-terrace. The market was basically aimed at urban investors. I presume some of these are destined to become council estates, although others are already entirely abandoned.

I’m not talking about quality terraced houses, council or otherwise.

I’m talking about any new development terraced stuff, say last ten years or so. Absolutely tragic stuff with worse sound insulation than an apartment. North Dublin is full of this kind of stuff…

Nice try! :smiley:

So is South Dublin unfortunatly.

Sorry misunderstood you. Definitely agree about the newly built stuff. Really it applies everywhere - north/south Dublin and beyond. The line “shoddy, shoddy workmanship” comes to mind.