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Saturday, 28 June 2008

Down, Down, Get On Down...Irish Property Crash...Daft Property Prices 2008...

Down, Down, Get On Down...

So just how low can it get?


Irish Times Property News:

"Deep price cuts in end-of-season sales.

WITH summer holidays looming and a glut of €1 millon plus homes on the market, and the realisation is finally setting in that a drastic price cut could be required to secure a buyer.

While the property market has seen price "adjustments" across the board, heavy discounts are now offer in some cases.

In the six properties listed here, the average price cut is 33.4 per cent.

The slowdown has been particularly tough on high-end properties, which have a smaller pool of potential buyers. Price drops of over 30 per cent can mean upwards of €1 million being shaved off the asking price.

KILLINEY: -31%

EIRENE ON Marino Avenue East in Killiney, Co Dublin, came on the market in March at €6 million. Now three months later Savills HOK has cut the asking price to €4.15 million for the two acre property which is a stone's throw from the Dart and beach and may have long term development potential. The 1880s house was designed by eminent Victorian architect Thomas Deane and is full of original detail, including striking ingle nook fireplaces.

However, the five-bed house, which extends to 325sq m (3,500sq ft) needs extensive refurbishment. It has two reception rooms overlooking the sea and leading to a long pavilion-style conservatory fronting onto the teraraced grounds.

DALKEY: -30%

It started out at €25 million in April 2007, but now Monte Alverno, high above Sorrento Road in Dalkey is asking €17.5 million. The stunning Gothic style home comes with 1.2 acres of grounds including formal gardens, swimming pool and tennis court. Next door to Van Morrison's home, it has 770sq m (8,298sq ft) of living space, decrorated in a rich traditional style. Sherry Fitz-Gerald is the agent.

SANDYMOUNT: -30%

NUMBER 6 GILFORD Road, Sandymount, Dublin 4, was put on the market at €2 million but Lisney is now asking €1.395 million, representing a 30 per cent drop.

The four-bedroom redbrick family house is a spacious 147sq m (1,580sq ft) and has four bedrooms, a main bedroom en suite shower room, drawingroom, diningroom, kitchen/breakfastroom, bathroom with free standing bath, and separate shower room.

MONKSTOWN: -27.5%

PRICED AT €4 million last year, Alta Vista in Monkstown, a 10-bed semi at 2 Knapton Road is on the market now at €2.9 million. At approx 465sq m (5,000sq ft), it has its original marble fireplaces, ornate ceiling plasterwork, window shutters and architraves.

Rooms include a livingroom, kitchen/diningroom, drawingroom, diningroom, livingroom and a kitchen. It has a large rear garden laid mainly in lawn and a garden level apartment.

DUBLIN 4: -41%

Nutley houses sold like hotcakes in the boom, but this renovated four bedroom semi at 10 Nutley Lane has been on the market for over a year, and has seen its price crop from €2.7 millino to €1.6 million.

The house has 255sq m (2,740sq ft) with a drawingroom, diningroom, study, open-plan kitchen/breakfast room and family room. The main bedroom is en suite and there's also an en suite attic room.

SUTTON: -41%

DOUGLAS NEWMAN Good is now asking €1.65 million for Lois Bridges on Greenfield Road in Sutton, Co Dublin - 41 per cent below the original asking price of €2.8m. The mid-1930s-built four-bedroom house is extended, with open-plan living accommodation which includes a kitchen, dining and living area. It also has a separate livingroom, study, and guestroom. Two of the bedrooms are en suite and the main bedroom also has a walk-in wardrobe."



You gotta love the term "price adjustments" - should be "price corrections".

Property prices in Ireland are totally daft... It's now time to get real folks!

Friday, 6 June 2008

Irish Property - Bursting The Bubble...

On UTV TV..."Bursting the Bubble...

Insight investigates falling housing prices in Northern Ireland...

A year after Insight warned that Northern Ireland was witnessing a bubble in the housing market, the programme returns to the subject.

Reporter Jamie Delargy explores what has been driving prices down. He talks to those in the construction industry, the removal business and estate agency world whose trade has been impacted by a drastic fall in the number of house sales.

One of the big banks here explains why they’ve had to tighten their lending criteria.

A home owner explains reveals how she feels about a thirty thousand pound drop in the value of her new home. And we hear about the developers who overpaid for land, some of how now risk going bust."


"Bursting the Bubble" Part 1:





"Bursting the Bubble" Part 2:






"Bursting the Bubble" Part 3:

Sunday, 1 June 2008

While Irish Economy Sinks Divorce Rises & Solicitors Laughing All The Way To The Bank!

According to the Sunday Independent Report..."Divorce to soar as economy plummets...

LAWYERS are reporting a "massive upsurge" in the number of couples seeking advice on separation and divorce since the beginning of the year, a development which may be linked to the current economic crisis.

Some family law solicitors are anticipating that even greater numbers of wealthy people will break up, as the reality of the economic downturn sinks in over the next six to 10 months.

Conversely, less well-off couples who want to separate or divorce, are finding they are unable to do so because of the extra expense involved in maintaining separate lives.

While the reasons for marriage breakdown inevitably vary, several solicitors working in this area have confirmed to the Sunday Independent that the current economic situation is impinging, in various ways, on couples who have decided to split.


As the economy worsens over the months and years ahead, there will almost certainly be significant long-term social repercussions.


...As London law firm somewhat cynically put it last week: "When money looks like flying out of the window, love walks out of the door."

Ann O'Neill, a solicitor practising in family law with McKeever Rowan solicitors in Dublin, says there is a "massive upsurge" in the numbers of people seeking separation and divorce.
Ms O'Neill is a member of the Dublin Solicitor's Bar Association Family Law Committee, which held a meeting last week. Ms O'Neill says all of her colleagues are reporting a similar increase which, she says, is clearly evident over the past 18 months -- and even more so since the beginning of the year.


She said: "At our meeting last week, many of my colleagues who work exclusively in this area were saying they are unable to leave the office until nine or ten at night these days, so busy are they."

While she agrees the noticeable increase mirrors the economic downturn Ireland, she says it is too early at this stage to definitively state that it is "recession related." But she says she is "swamped" with inquiries.

"I have had a huge surge in business. I cannot say at this stage if it is all related to a change in the economic climate, but I can say that a lot of high net-worth individuals are finding their marriages going down the tubes," she says.

"I can certainly say that when the extent of the downturn in the economy filters through -- and the Davy report last week was an eye-opener -- I expect it will alert women who want to get out of their marriage to secure the family home when assets are unencumbered."

Ms O'Neill's assessment appears to be supported by Karen Hickey-Dwyer, a partner with Ivor Fitzpatrick solicitors. She said: "A factor in marriage breakdown is, certainly, that people are not as liquid as they used to be. Issues related to this, for example, are that bonuses are no longer being paid, and, I suppose, that house prices are falling. But that brings its own difficulties to couples intent on separating.

"Women are concerned about securing their futures, securing their lifestyles as they have developed over the boom times. I imagine there will be a lot of movement on this over the next six to ten months. We will see a lot more of it. I expect we could be inundated towards the end of the year."

Muriel Walls, a partner in McCann FitzGerald solicitors, points out that the economic downturn is in some ways preventing couples from separating. "The house is worth less, the job is at risk, they are asking -- even if they want to -- is this the time to separate?"

Hugh Hannigan, a partner at Simon McAleese solicitors says an impact of the meltdown of the economy on family disputes means divorce and separation proceedings will be more bitterly fought and more difficult to settle. This is primarily due to the fact that there is "less money in the family pot".


"This will be particularly so for married couples with young children who require substantial and regular income. It will also mean a reduced standard of living for separated couples," he says.
He also adds that recent high-profile "Hollywood-style" divorces may have led to a "false security" for some Irish couples embarking on separation and divorce. "The financial gain for some spouses who separate and divorce is no longer guaranteed," he warns.


All solicitors acting in this area agree that the economic downturn is having a significant impact on existing cases.

John Costello of Eugene F Collins solicitors, says: "The downturn is putting a lot of pressure on couples in the throes on separation to prove the correct value of their assets -- be that their home or company, which by now could have a minus value. There is a huge element of discovery, to try to prove how valuable a company is, particularly a property company.
"The other big issue is that the family home is proving impossible to sell -- and if it must be sold, it's being sold under value. It's probably better not to sell at all."


Ms Walls concurred: "Because of the good times, people's expectations have become great. Some women never really had to budget. They spent, maybe, €10,000 a month in BTs or on three shopping trips a year to New York with the girls. But that's just not there anymore.

"The other thing is that some children have expectations of an allowance of several hundred euro a month, a car, their insurance paid...


"They don't seem to think anymore, like we had to when we were their age, that maybe they should get a job."


One thing for sure - the Solicitors will be laughing all the way to the bank. The Irish Economy may be gone bust but it's turning into a boom time for these guys!