Matt Dunne & Associates RICS, Portarlington is selling property for the last 28 years in Laois/Offaly and he acknowledges that property prices are now at a level that prevailed in the market place in the late 1990’s.
In 2002 for example when we switched from the pound to the euro a 3 bed semi in Kilnacourt Woods Portarlington was £97,000 which equated to circa €120,000.
That same three bed semi is now available at €85,000.
Furthermore the value of once off property in the countryside has also decreased dramatically for example when a prudent valuer is ascertaining the value of a property on behalf of the bank he immediately discounts the initial value/cost of the site and estimates that the current capital value of the property equates to the current cost of construction of the building. In other words the open market value of a typical 1500 sq ft bungalow plus garage on 0.5 acre is circa €160,000 /€170,000 ie the cost of constructing it.
At the moment a lot of people are renting and are afraid to buy. In most cases they are paying more in rent than they would in their monthly mortgage repayments. This is madness!
The experts estimate that approximately 70% of the excess houses that were built in the boom are now sold/rented and the closer we move to an equilibrium of supply and demand the quicker we will see an increase in house prices.
This equilibrium has now been reached in Dublin and consequently prices are increasing.
Some new developments are being launched with tremendous success.
My advice is that “if you are lucky enough to have a stable job and have at least 10% of the purchase price in savings” you should buy a house.
The banks appear to be open for mortgage business but you have to be determined and have all your paper work in order.
If you are interested in buying or selling property in Laois/Offaly then contact the experts today! 0578623349 or email@example.com