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Archive for Property
DNG report significantly improved sales activity at DNG National Conference held last Tuesday in Galway
Network offices of property company Douglas Newman Good Offices reported positive signs of recovery in the property market with an increase in sales and viewing levels across Ireland at its annual National Conference in the Carlton Shearwater Hotel in Ballinasloe, Co Galway. Attendees at the conference also reported that the rate of price decline has sharply decreased over the last quarter of 2009 and that the market appears to be very close to stabilisation. However this was after large price reductions were seen across all sectors of the market for the first three quarters of 2009.
DNG also noted positive signs in the property market with a large drop in the number of customers requesting the return of their booking deposits paid down to 5% from a high of 30% during the height of the property crisis.
According to Keith Lowe CEO, DNG Nationwide “This is very significant and our agency has not experienced a statistic like this since the boom years. Since the property market started to experience a re-alignment in late 2006 the number of buyers who paid our agency booking deposits on homes and then changed their buying decision was as high as 30%. This important statistic indicates that buyer confidence has improved and that prospective purchasers are not finding better value elsewhere in addition to not having problems arranging their mortgage. Many buyers are also advising us that they are keen to purchase now and take advantage of low long term fixed interest rates.”
It was also reported that property prices in the greater Dublin area have dropped by an average of 48% since peak in late 2006 but that the level of drop of 4% in the last quarter of 2009 was much less than the three previous quarters. According to the organisation this indicates that property prices in the greater Dublin area are close to stabilisation and the agency is predicting some level of price growth in certain areas of the market as early as next year if not before.
Attendees also heard that the number of new properties coming to the market for sale throughout the country has also reduced and that this reduced choice for buyers should also assist recovery of the property market.
The conference also reported that it is imperative that the government continue to ensure that there are sufficient levels of finance available through Irish financial institutions for property transactions as a vibrant property market is essential to assist economic recovery.
Keith Lowe also added “Following the very sharp countrywide price falls in property prices over the last three years it is encouraging to see much increased viewing and sales activity in the property market. Sales in our Dublin network have increased by over 30% this year compared to the same period in 2009. There is normally a time lag between market changes in Dublin and the rest of Ireland and it is encouraging to see evidence of improved activity already being experienced throughout the DNG nationwide network”
Speaking at the conference Shane Flanagan of DNG Flanagan Ford commented on the increased level of activity in the Sligo area. “Since December 2009 we have seen a notable increase in not only the quantity of viewings we have, but also the quality of viewings, ie the majority of viewers are genuinely interested in purchasing a property. We feel that prospective purchasers now recognise that there is excellent value to be had at present in Sligo & surrounding villages & towns. We have Sale Agreed numerous properties over the past few months & almost all of these sales are expected to conclude successfully.” Shane added “Some of the lending institutions are now lending funds especially to first time buyers & we have already seen the positive impact this is having on the local property market. Many sellers are now far more realistic about the price they wish their property to be placed on the market at & this has been a massive factor in attracting increased viewing numbers. This is a trend we expect to continue over the coming months.”
About Douglas Newman Good & DNG Nationwide.
Douglas Newman Good (DNG) are the largest seller of residential property in the greater Dublin area and operate a network of 67 real estate offices throughout the Ireland.
SLIGO WINNER OF IAVI ACADEMIC EXCELLENCE MEDAL
On Friday 22nd January at the Irish Auctioneers and Valuers Institute (IAVI) Annual Conference in the Burlington Hotel, Marie McDonald from Carraroe was presented with the Owen O’Riordan Memorial Medal for academic excellence in the Institute’s Higher Certificate course by IAVI President Ms Aine Myler.
The IAVI has supported, and insisted upon, high academic standards in the property profession for many years. In partnership with the Dublin Institute of Technology it runs two property courses – an Honours Degree and a Higher Certificate in property studies.
To recognise the achievements of two students who achieve academic excellence in these programmes, the IAVI awards a medal to the student who achieves first place in each course. For the Higher Certificate course, the Institute awards the Owen O’Riordan Memorial Medal, the 2009 winner is Marie McDonald who works with DNG Flanagan Ford in Sligo.
For the Higher Certificate course, the Institute awards the Owen O’Riordan Memorial Medal. Owen was a student on the IAVI Residential and Land Agency course, (the forerunner of the Higher Certificate). Whilst on the course, Owen was diagnosed with a serious illness. Despite this, he battled on and continued his studies until he died aged 21, still attending lectures on the course, in 2005. The winner of this for 2009 is Marie McDonald who works with DNG Flanagan Ford in Sligo.
Pictured left to right are: IAVI President Ms Aine Myler, Chairman of Sunderland AFC Mr Niall Quinn, medal winner Marie Mc Donald and Shane Flanagan, Director DNG Flanagan Ford.
Marie joined DNG Flanagan Ford in 2001, initially working in the financial services side of the business for the first 3 years & during this time studied with the Institute of Bankers & received her QFA qualification along with a Certificate in Investment Advice. However in 2004 Marie took a keen interest in the auctioneering side of the business. DNG Flanagan Ford have always placed strong emphasis on all members of staff attaining the highest standards of qualifications relevant to their work. “We at DNG Flanagan Ford are absolutely thrilled for Marie. We saw at first hand the effort she was putting in & we knew that with her dedication & excellent work ethic she was always going to do well in this course. To come Number 1 in the country when so many are attending was an absolutely massive achievement & we are all so proud of her” said Shane Flanagan of DNG Flanagan Ford. “Marie brings this level of enthusiasm & dedication to work everyday of the week & this award will serve as not only a huge confidence boost for Marie, but will also I think, give her great satisfaction for the huge effort she put in while attending this course which included many weekends & mid week journeys to Dublin to attend long lectures.”
The Hawthorns, Carraroe, Sligo – Reduced Property Prices
New Houses in Carraroe only €199,750!
It will be hard to beat this for value, 3 Bed Semi Detached Homes in Carraroe, Sligo for only €199,750. The remaining 3 bed semi detached houses in The Hawthorns are now on release at this rockbottom price & with just 10 properties remaining demand is already high. Buyers in the current climate are seeking value for money, affordable prices, excellent locations & high standard of finish. Recent purchasers of homes in The Hawthorns quite clearly had all of these expectations met, are delighted with their new homes & will be well settled in in time for Christmas. Denise Church purchased a property in The Hawthorns & moved into her new home recently. “I felt that this was the right time to take the first step onto the property ladder. With mortgage interest rates at their lowest ever & prices also reduced to such an affordable level it made absolute sense to take advantage of this & purchase my own place. I have rented for a number of years & I got to the stage where it felt like money down the drain every month. But I thought that the only way I could afford my own home was to buy outside of Sligo & that’s not where I want to be. So when I noticed the reduced prices of the properties in The Hawthorns I had no hesitation in booking a property there. The standard of finish in the house is second to none & the development itself is always so well kept & tidy. I would definitely recommend anyone thinking of buying to go for it now, with just a few houses left in The Hawthorns we’re not going to see value like this again in Sligo town.”
Laura Mannion, pictured here at her new home, had spent the last year or so viewing properties, new & second-hand, and like all of us was waiting for the market to ‘bottom out’ before making the decision to buy her first home. “When I first starting seriously looking for my first home The Hawthorns ticked every box, but unfortunately the price was over my budget, which led me to consider buying in new developments outside Sligo in commuter towns. But living in Sligo has always been my preference for convenience & less of a commute so I found it difficult to commit to purchasing in a development so far out from town, even though the prices were at a level which I could afford. I noticed recently that the prices in The Hawthorns had been reduced & just couldn’t believe my luck! I booked my house with DNG Flanagan Ford & I have never looked back. My house will be ready to move into in a matter of days & the builders have been fantastic to deal with & so accommodating with any requests I have made. I am thrilled to have my own house in Sligo town without having to blow the budget & can’t even comprehend having to commute a long distance into town every day!!”
Viewings & further information on Phase 3 can be obtained by contacting joint selling agents:
DNG Flanagan Ford 071 9159222, 087 2721367, marie@dngflanaganford.ie, www.dngflanaganford.ie
John Leyden & Sons Auctioneers 071 9167655, 086 2538254, info@leydenauctioneers.com, www.leydenauctioneers.com
LOCAL GOVERNMENT (CHARGES) ACT 2009 – NON PRINCIPAL PRIVATE RESIDENCE CHARGE
The Local Government (Charges) Act 2009 gives effect to the Government’s decision to introduce a €200 charge for non principal private residences. The liability for the charge arises mainly in respect of rental, holiday and vacant properties, and the revenue stream will flow to city and county councils. Liability will arise for owners of the property concerned at a point in time, being one day in each calendar year to be known as the “liability date”. 31 July will be the liability date in 2009 and 31 march in subsequent years. Failure to pay the charge within one month of the date it falls due will result in a liability for a late payment fee calculated at the rate of €20 for each month or part of a month that the charge remains unpaid.
Provision is also made for ancillary provisions such as: agreements between local authorities or between local authorities and the either or both the Local Government Computer Services Board and the Local Government Management Services Board; data sharing; and offences and penalties.
The Act represents a significant broadening of the revenue base for local authorities. Certain residential property will now provide a revenue stream to local authorities for the first time in over thirty years since the abolition of domestic rates in 1977. Longer term, the taxation of domestic property is likely to be guided by the report of the Commission on Taxation which is due later this year.
Main features of Act
· The Act provides for the introduction of a charge of €200 per annum on non principal private residences.
· The Act is relatively short and straightforward. The charge arises at a point in time each year called the ‘liability date’. It applies to residential property with certain exceptions, the most important being principal private residences. Owners (not occupiers) are liable to pay it, and the funds will be paid to local authorities (county and city councils). It can be said to be a form of self-assessment in that it is for the owners of residential property to assess whether they are liable to pay the charge, and local authorities are not required to issue bills. Failure to pay within one month of the due date incurs a late payment fee of €20 a month.
· The interpretation sections (1 and 2) are the most complex and substantive in the Act. These define “building”, “dwelling” and “residential property”. Together, these definitions represent the cornerstone of the Act: “building” defines structures; “dwelling” defines use; and together these form the core of the definition of “residential property” which is what the charge will apply to.
· Liability will arise at a point in time each year, and this day is called the ‘liability date’. 31 July has been prescribed as the liability date for 2009 and 31 March will be the liability date in subsequent years. Payment falls due two months after the liability date.
· The Act exempts certain types of property and owners from the charge. The most important exemption relates to principal private residences. Other types of buildings exempted are those: newly constructed but unsold; with heritage merit; let directly or indirectly by local authorities for social housing; let by voluntary housing bodies; the subject of a shared ownership arrangement with local authorities.
· Other exemptions apply where: a person purchases a property for use as a principal private residence provided they dispose of their existing property within 6 months; a charity owns the property; and where a spouse or ex spouse has an interest in a property after a divorce or separation agreement but does not reside there. The Act also provides that mobile homes are exempt, and that certain ‘granny flats’ and principal private residences vacated due to illness resulting in incapacitation are exempt
· The Act provides that payment of the charge shall be made to county and city councils. The Budget estimated the annual yield from the charge at €40 million but it is estimated from census and other data that there may be 400,000 properties in the state liable for the charge. The full potential yield would, therefore, be closer to €80 million. It is likely that collection levels from rental properties (200,000) will be higher than holiday homes and vacant homes because PRTB data will assist local authorities to identify rental properties.
· In the event of non payment of a charge for which a person is liable by the due date, a late payment fee of €20 will apply for each month or part of a month for which the charge remains unpaid. An unpaid charge and late payment fee will be a charge against the property in respect of which the liability arose.
· Local authorities can delegate functions to the Local Government Computer Services Board and/or the Local Government Management Services Board. In practice the LGCSB will design and operate a web-site facilitating electronic payment of the charge.
· Provision is made for data exchange between local authorities and the PRTB, ESB and the Revenue Commissioners. This data should assist local authorities to identify properties liable for the charge but there is no comprehensive database of residential property within the State that is liable for this €200 charge. The PRTB hold data in relation to rental properties, the ESB’s systems can generate data in relation to residential properties where a relatively low quantum of electricity is used (indicating the possibility of a holiday or a vacant property) and the Revenue Commissioners hold data in relation to certain property transactions (stamp duty, VAT and capital gains taxes).
Dark clouds hang over the property market, however there is a silver lining
The property market continues to endure a difficult time at present, with the slides in values which commenced in 2007 yielding between 20% & 30% falls in property across the country. This has lead to property in many areas becoming far more affordable & within more buyers reach. This more difficult property market is causing buyers to be far more discerning & choosy about the particular properties they wish to acquire.
The old adage of the three most important things to consider when buying a property are location, location and location has never been more relevant than it is today. What we are finding here at DNG Flanagan Ford is that appropriately priced property in good locations can still find buyers. We do have some properties on our books that have been there for quite a considerable length of time with very few viewings being attracted even when prices are moderately reduced. However in the more popular locations when prices are reduced to reflect the current levels in the market, viewers are forthcoming & we are making successful sales. It is important, I think, for people to realise that all that is happening in the market place is a correction in property prices. Vendors wishing to make sales need to reposition themselves in the current market to reflect prices which the market is prepared to pay. Luckily we have many of those vendors on our books who are prepared to be both realistic & honest about the value of their property.
An example of this is a development called The Hawthorns which is located behind the Carraroe Retail Park here in Sligo city. This scheme saw property prices reduced from a high of €320,000 for a 3 bedroom semi detached down to €200,000 in February of this year. Since that date in February we have successfully sold no fewer than 20 new homes in this scheme. There are many other examples similar to this, such as Dorrins Strand in Strandhill etc. The second hand market continues to endure a tough time, however again at realistic levels sales continue to happen. In the past two weeks our office has sold – 6 second hand properties in the Sligo area. It has also been reported in the DNG offices based in the Greater Dublin area that sales for the month of June of this year were at a record high for the past 2 years. This can be put down to the dramatic correction in prices allowing properties to be far more affordable.
A brief example to explain how much more affordable property has become is to consider The Hawthorns. When we were selling 3 bedroom semi detached houses in this scheme for €320,000 interest rates were running at approximately 5.3%, now that prices have been reduced to €200,000 interest rates are also down to a record all time low of 2.4%. The difference in monthly mortgage repayments as a result of the price reduction & the interest rate reduction is almost €900 per month. The old repayment would have been in excess of €1,542 per month & the new repayments are less than €650 per month.
In relation to market sentiment overall, none of us are living in a cocoon or are immune to the constant barrage of bad news being reported in all sectors of the media. Some of this reporting is pure honest reporting & some if it may be described as sensationalising. However, there is no way of avoiding the fact that we are going through one of the most difficult economic times that the country has ever experienced. Like the constant rise with property, it is important for all of us to realise that falls in property cannot continue either. The difficulty - from a buyers prospective is that we will not know when property prices have bottomed out until they start rising again. Buyers who wish to put off their decision until they know that the property market has bottomed out will surely miss that point in the market by continuing to wait. The only way we will know that the property market has bottomed out is if property prices start to rise. In my opinion the cost of buying a home in the current market has never been more affordable & there are excellent opportunities out there for those buyers prepared to put time & effort in to seek out a suitable property to suit their requirements. My advise would be to start looking and look carefully …………
Successful Property Sales in Strandhill!
During these days of doom and gloom, and the constant negative reports in the media of the property market, sellers in Strandhill and surrouding areas eventually have something to smile about. Over the past few weeks DNG Flanagan Ford have sale agreed three properties in Strandhill Village and another property in Aylesbury Park on the Strandhill Road. “We are lucky to have such good quality homes on our books at present, and as is the case with any type of selling, good quality products coupled with an excellent sales team will always produce the best results. Another important factor is the correct pricing of houses in line with the current market” commented Marie McDonald of DNG Flanagan Ford.
She continued “The properties which we have recently sale agreed in these areas were 4 bedroom detached and semi detached houses, three of which were owner occupied and one was an investment property. All houses were in excellent condition throughout, allowing viewers an opportunity to get a good feel for the properties while viewing them. As a result of these recent sales we now require more properties of this nature in the Strandhill and Strandhill Road areas, we have dissapointed under-bidders on our database with whom we can make immediate contact.”
DNG Flanagan Ford would love the opportunity to discuss their selling and marketing process with potential sellers and can be contacted in their new offices at Shell House, Wine Street, Sligo; telephone 071 9159222 or contact negotiators directly on 087 2721367 – Marie McDonald; 087 2461062 – Shane Flanagan.
Prospective homeowners advised to buy soon
Prospective homeowners hoping for further price drops before entering the property market in Sligo have been warned not to wait too long.
Since the collapse of the property market, house prices in many areas of Sligo have fallen by 30 to 40%. With interest rates at an all time low, it’s unsurprising that local estate agents have reported an upsurge in business in recent months.
Shane Flanagan, of DNG Flanagan Ford, noted that post-Celtic Tiger house buyers are extremely cautious. “The difficulty is giving people confidence that they are getting good value. A lot of people are very wary of the market & unless they feel that they’re getting good value then they’re not moving, but we’re getting a very good response.”
For those young couples waiting until the market bottoms out before buying their dream home, Mr Flanagan has a word of warning. “It’s impossible to know. We’ll only know when the market has bottomed out when the market starts to rise again. The people who are waiting for it to bottom out are unlikely to get it when it bottoms out. It will have already started to rise again.”
For those lucky enough to have secured mortgage approval in these difficult times, Mr Flanagan, who has decades of experience in the local property market, advises that now could be the perfect time to buy. “We did a little exercise recently where we took a house that was priced at €320,000 two years ago. The exact same house is €200,000 today. A 92% mortgage on that house two years ago was over €1,500 per month. The exact same 92% on €200,000 is less than €600 per month today. That’s not only due to a reduced price, but the fall in interest rates. There have been massive cuts in interest rates. That’s why people are moving on property, when the prices are perceived to be good they are prepared to invest.”
Successful Property Lettings
Since launching their residential rentals division in January of this year, DNG Flanagan Ford have been overwhelmed by the level of success recorded in such a short space of time. Tess Monaghan is heading up this division and to date has secured tenants for the majority of properties on her books. Landlords are obviously delighted with this success rate and high standard of service provided.
“In an ever changing property market we had to think on our feet as how best to enhance our already successful property business due to the slow-down in residential property sales”, commented Tess Monaghan. She continued “This up turn in peoples preference to rent has been caused by the increased difficulties in obtaining mortgages and also due to the fact that renters can now live in a large, luxurious property for a fraction of what the cost if they would have to pay if were paying a mortgage for the house. Gone are the days of grotty bed-sits and coin-operated electricity meters; renters can now enjoy comfortable living without the committment of large mortgages over a very long period of time. This along with the coming into force over the next few months of new standards will only serve to continue the improvement in the quality of existing rental accommodation.”
“I am delighted with the number of properties which I have sourced tenants for to date and I am sure that I will continue to be successful in this area. However, I now require residential properties in all areas of Sligo to service our expanding database of prospective tenants who are actively sourcing rental properties. I can assure landlords of a service which is second to none, along with rates which are very competitive. Landlords who are interested in discussing the services which I provide can contact me at any stage on 086 3999062, 071 9159222 or tess@dngflanaganford.ie.”
Commercial Property – First Letting Following Redevelopment – 6 Months Rent Free!
Located seconds from O’Connell Street, Sligo, this 3 storey commercial property would provide an excellent stand for a variety of businesses, existing or new. 12 Market Street was purchased by its present owner approx 4 years ago & has been redeveloped from a residential property to a commercial property. All modern features which you would expect from such a redevelopment are included such as hollow-core flooring, 3 phase eletricity, ect. The ground & first floor have retail/commercial designation, while the top floor is for use as storage. There is also a small yard to the rear of the property, along with an impressive out-door terrace off the first floor.
Market Street, as its name suggests, has traditionally been a hub of retail activity in Sligo & this is true today also. There are many high profile retails positioned on this street including David Martin Hair Dressers, Argento Jewellers, Taheny Electrical, Paddy Power Bookmakers & Michael Kennedy Ceramics. Aswell as being a busy retail location, it is also an area which proves very successful for office based companies. Such companies operating in premises close by include TN Lynch & Co Engineers, David Gallagher Solicitor, Allianz Insurance, etc.
12 Market Street is available immediately & DNG Flanagan Ford are inviting interested parties to contact their office to discuss this opportunity further & to arrange viewings.
Sligo Property – A site full of potential from DNG Flanagan Ford
DNG Flanagan Ford are delighted to bring this rare opportunity to the market. This spectacular half acre site enjoys wonderful views across Lough Gill. Situated only 4.5 miles ( less than 8 kms) from Sligo city centre in a very picturesque part of Sligo, this site offers an excellent unrivalled opportunity to a suitable applicant to achieve planning permission for their dream home.
The site is being sold subject to planning permission & we are recommending that those wishing to tender for this site consult with the planners prior to submitting their sealed bid. The owners have not applied for planning permission themselves on this site & there are other one off houses in the area. Clogherevagh is home to the world-renowned St Angelas College & is one of Sligos most popular locations for one off houses due to both its convenience to Sligo city centre & also the spectacular south facing views which many of the properties enjoy.
We are seeking sealed bids to be submitted to our offices no later than 5pm on Friday 24th April 2009. The winning bidder will be required to sign contracts subject to receiving full planning permission on this site within 4 weeks of their sealed bid being accepted. Contact Sole Selling Agent Shane Flanagan of DNG Flanagan Ford on 071 9159222, 087 2461062, shane@dngflanaganford.ie for further details.