They're still undecided on the doorstep, says ISABEL MORTON
DO PROPERTY purchasers really exist these days or are people still sitting on the fence? Not to be confused with property viewers, who are a different breed entirely, property purchasers do actually
set out with the express intention of buying property.
They’ll either have a few bob tucked away under their mattress or will have sold their souls to the banks in order to secure a mortgage.
Either way, they’ll have sorted out their finances and will have carefully monitored the steady decline in asking price of every property they’ve ever dreamt of owning.
As one woman admitted on her way in to view a substantial period property last Saturday, “to be honest I can hardly believe that houses like this are now within our grasp. We’d never have been able to consider these before, but now it’s a possibility”.
Real property buyers have a quiet intensity about them. They’re on a mission, which invariably becomes an obsession. I know – I’ve observed enough of them over the years.
Last Saturday, on my rounds of properties on open view, I met a few prime examples of that particular breed plus many others who are still watching and waiting.
In an effort to ensure that my small (and entirely unscientific) survey might be considered reasonably balanced, I interviewed people viewing properties with asking prices ranging from €450,000 to €3 million.
In the main, property buyers at the lower end of the price range were ready to buy and were of the belief that prices have now stabilised and are not going to drop any further.
Some even suggested that prices might be creeping up again, as buyers compete for well-located three-bedroom homes.
A couple of first-time buyers giggled as they admitted that they had been viewing property every weekend for nearly three years. “We kept holding back but now we’ve noticed that things have levelled off in our price bracket and stuff is selling, so we’ve decided that this is the year.”
Another couple in their mid-30s have been renting since their first child was born. “It’s coming up to a year since we sold and although the rented place is fine, we now just want to get on with our living our lives.”
One woman looking at the same three- bedroom house told me, “we’re debating whether to downsize or not because larger properties have lost so much of their value. Our son thinks we should hang on, as we don’t actually need to sell but I’m keen to get it over with as I can’t see values going up again for years”.
My next port of call was a well-located large period semi-detached property which has been on the market for some time but has recently had its asking price greatly reduced.
“We’re looking to trade up as we bought about 10 years ago and it looks like everything is coming back into value now so it’s a good time to buy, especially with the lower stamp duty,” said one viewer.
“Obviously, anybody who bought in the last five years won’t be trading up so we’re lucky in that way, as we can afford to look for a bit more space and a good garden.”
Shocked at how much the Universal Social Charge had affected his earnings, he is also concerned about interest rate increases and worries that Nama might suddenly release a number of properties on to the sales market, which might delay economic recovery even further.
“Ideally we’re looking for something which we could live in and do up bit-by-bit, room-by-
room. If it’s a wreck and you can’t live in it, that’s a big consideration because you can’t pay rent and a mortgage at the same time. If the price is right and there’s not too much work to be done, then we’ll consider it.”
By contrast, many of those viewing at the very top end of the market were convinced that prices have a lot further to fall. Some even suggested a drop of a further 50% of today’s valuations.
I spoke to one interesting couple with strong views on Irish property and the economy. “Property is still 50% overpriced. It’s still not a good time to buy. We’ve watched prices drop by 20% over the last six months.
“We’ll wait, as they’ll drop further, although it’ll take 15 years for it all to wash out of the system.”
They went on to issue a warning: “Ireland is worse than a communist society, as everything is now owned by the government . . . hotels, office blocks, retail units, residential homes . . . everything. All the top people will either go bust or leave Ireland. They’ll just pack up and go. Everybody is
working against the banks and the government, looking after their own backsides. How much longer will it be before we fall into anarchy and people will start robbing like in the old days?”
It appears that while some people are now daring to jump over the low fences, another lot is sitting and waiting on the high ones.
ISABEL MORTON
is a property consultant
