How much do you think these houses are worth. They are a new development in Co Meath just beside Bettystown? Anyone know anything about them? Thanks
Theyare worth whatever level of debt people are willing/able to take on to own them and with the current improving state of the market, this is a lot less than what the developer is asking, and by the end of Summer they will be worth less again.
I understand what you are saying but I was looking for a more specific answer regards that estate. I understand the general feeling but I was looking for some more specific info if people have any? But thanks for yoru prompt answer!!!
I’m not familiar with the area but based on current rent multiples in the area I would be prepared to pay around €160K for the 3 bed semis. If you want to compare prices with other properties in the area or negotiate for a better deal, then price the properties per sq/ft (sq/meter)
Remember the sellers in the area are chasing the market down so assigning a price today is pointless it will be lower tomorrow.
The more important question is does the current asking price represent value to you? If not at what price do you find value?
- In assessing value what is employment in the area like?
- How far are you from your job? what is the commute time?
- What are your long term goals (marriage, kids)?
- For new buyers for the next five years (at least), there will be little or no opportunities to trade up, so would you be better off with the 4 bed? (convert room to office)
- What are schools like in the area?
- Is the area subject to flooding?
- Do you or your partner have relations in the area?
- Is this a high crime area?
- Are there any other benefits to living there?
- Building quality, heating, insulation?
- Does the price include kitchen and white goods?
The best thing to do in the current market is for you and your partner to sit down and list what criteria form value for you and rate them one to ten in order of priority. Find out what annual rent for a similar property in the area is and multiply by 10, if the price comes in around that value then it represents fair value (in my opinion), but you then have to apply your personal subjective valuation criteria to it to decide if it is worth paying a premium over the rental multiple.
If you find the mortgage payments are more than what you would pay for rent in the area, then do not buy.
Factor in household running expenses into your budget (heating, electricity, estate service charges, bin charges, water charges, insurance)
Food, energy and mortgage payments are all going to rise for the foreseeable two years, so allow a minimum of at least 5% for increasing costs per annum, this should give you some safety margin.
PS. I know you may be shocked at the €160K valuation and may dismiss it as unrealistic (as will the sellers), but, you have to remember we’ve been in a credit bubble and house prices are completely out of whack with their typical long term trends.
Cool, thanks very much for that. The catalogue price on these houses are around the 380k mark for a 4 bed house (extended kitchen) so I assume you would not pay that from what I am reading above?
Very impressive GB. Well done.