Your property questions answered
What’s the story on the house auction?
Q I heard an item on the radio about an auction of houses being sold by the receiver, at rock-bottom prices, in a hotel in Dublin in April. Do you have any information about it? Is there any difference between buying from the receiver and buying in the normal way?
AThe forthcoming auction of properties by UK agent Allsop (for catalogue see allsop.co.uk) working with Irish agent Space did create a great deal of publicity, and not just because the reserve prices are low but because if the various lots sell, the prices they achieve will be there for all to see.
At the moment when properties sell – and they are selling – there is no way of finding out how far from the asking price the buyer actually paid. In other words, the auction could provide a real snapshot of the state of the market, which is good thing.
From a buyers’ point of view, buying from the receiver is the same, in terms of the legal requirements, as buying from anyone else. Receivership properties are coming on the market all the time, most large estate agents have properties from receivers on their books for sale by private treaty, so it’s not unusual, what is, is the auction format. What you must realise is that buying at auction is not for the faint hearted – and never was. Auctions, whether they are for distressed properties or not, are the same in terms of the process. The key thing is that your financing must be in place – you cannot bid “subject to mortgage approval”.
On the day, if your bid is the highest, you will be expected to hand over a 10 per cent deposit and you are then legally obliged to complete the sale within five weeks. Before the auction you will have to do the usual groundwork. Your lenders will want to value the property before they decide how much to loan you. For example, several of the properties in this auction are one-bedroom apartments and borrowers are likely to have difficulty getting finance to buy them. You should also get a surveyor to look at the property in advance and your solicitor will also have to go through the normal title checks to make sure there are no problems.
You should also research the market (search myhome.ie). Find out what other similar properties are selling for – people can get carried away at auction and bid more than they mean to.
Are aliens liable for tax on holiday home?
Q As aliens having a holiday home in Ireland are we liable for Non Principal Private Residence Levy?
A Yes. The NPPR levy goes to the local authority where the property is located to pay for essential services. If an Irish person owns a holiday home in, say, France, they do not pay the NPPR here, rather they will have to pay property taxes (and significantly more than €200 per annum) in France. You should see nppr.ie or contact your local authority to ensure you are not in arrears as these can mount up significantly.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
