Houses prices in Northern Ireland

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MichaelDes

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I am trying to sell an investment property in Northern Ireland (Fermanagh holiday home- bought 2003) and it is not shifting.

Is the market in a state of paralysis after the dizzy rises of last year (55%↑) and has yet to settle, or is the paralysis the first stages of a crash with a price drop of 25%+. The house is now listed with 2 agents, it is competitively priced in relation to others in the area has been advertised but has not seen much action. Had a firm offer that got the jitters last minute and pulled out. The property has been reduced £11k already and one estate agent reckons drop another £10k whilst the other agent says I'm mad as the house is well priced as others he has sold at my price but not half as good. Who should I believe? How far London did crash in the late 1980s - was it 25% or more? What should I do? Yield if rented and hard to manage would be less than 3%. Property valued at £260k now £249k. Advice please - on market since mid May and after Halloween market dead til February.?
 
If no one will buy it the value is zero. That's property for you.

With interest rates in the UK at 6% if YOU were buying the property now and wanted to at least break even on an on going basis what price would you pay? That is the inherant value of your property, the rest (>50% in your case judging by the yield) is speculative.
 
In a few short months property in the north has gone from selling in a few days from going on the market to now taking several months. The market is very stagnant but I'm not aware of prices dropping but there is more negogiating on behalf of buyers taking place. The recent hike in UK interets rates seem to have slowed things down considerably. Is the market just taking a breather? its hard to tell at the minute. Locally I'm aware of many investors getting out having made their £50 - £100k in the last few years. There are many more properties now on the market thus greater choice and potential buyers are aware of more possible interest rate rises. I was living on mainland Uk in late 80s early 90s when the 'crash' happened. It creeps up on you. One factor that I believe played a part was the media hype - as people are made feel more nervous etc the market ends up in freefall.
Holiday homes always take longer to shift. If you have made some money on it and are nervous, lower your expectation and get out as I believe that rises property prices will be very moderate over the next few years except maybe in parts of Belfast.
 
MichaelDes said:
I am trying to sell an investment property in Northern Ireland (Fermanagh holiday home- bought 2003) and it is not shifting.

Is the market in a state of paralysis after the dizzy rises of last year (55%↑) and has yet to settle, or is the paralysis the first stages of a crash with a price drop of 25%+. The house is now listed with 2 agents, it is competitively priced in relation to others in the area has been advertised but has not seen much action. Had a firm offer that got the jitters last minute and pulled out. The property has been reduced £11k already and one estate agent reckons drop another £10k whilst the other agent says I'm mad as the house is well priced as others he has sold at my price but not half as good. Who should I believe? How far London did crash in the late 1980s - was it 25% or more? What should I do? Yield if rented and hard to manage would be less than 3%. Property valued at £260k now £249k. Advice please - on market since mid May and after Halloween market dead til February.?
Click to expand...

How much did you pay for the property in 2003 and what could you rent it for now?
 
Howitzer said:
If no one will buy it the value is zero. That's property for you.

With interest rates in the UK at 6% if YOU were buying the property now and wanted to at least break even on an on going basis what price would you pay?
Click to expand...

You are looking at this in the context of an investment only - an owner occupier might buy this property.
 
demoivre said:
How much did you pay for the property in 2003 and what could you rent it for now?
Click to expand...

Paid £98k...so i'm quids in regardless. It could be ideal for owner occupier as its in a mixed development of both holiday home and owner occupiers. Rent would be £600 p.c.m. or as holiday home £450 per week for a short season.
 
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