Apartment Blocks Selling As One Lot to Big Investors Only

Pabilito

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There’s a recent trend for newly built apartment blocks being offered for sale as a single Lot instead of conventional selling of individual units to individual buyers.

Today I passed a newly erected sale sign in Northwood, Santry for 216 apartments:

“To be Sold as one lot”:

https://www.irishtimes.com/business/commercial-property/80m-sought-for-development-of-216-apartments-at-santry-demesne-1.3534758

This has the effect of depriving those mainly young people who would like to purchase a small starter home of their own. Instead they are being forced more and more into renting a home instead of being afforded the opportunity to buy and those rents are substantially higher than the equivalent mortgage.

“Savings for a first-time buyer can be considerable if they buy instead of rent. Daft.ie's most recent report shows it would cost a first-time buyer only €976 per month in mortgage repayments to buy a one-bedroom apartment in Dublin 14. That compares with a rent of €1,483 for the same unit - a 52pc cost difference.”


https://www.independent.ie/business/commercial-property/big-investors-dominating-the-market-for-new-homes-37006994.html

While building new homes is desirable, this new trend effectively reduces supply of affordable homes to willing buyers and thereby maintains artificially high prices while benefitting big investors.

Given that homes are a necessity for citizens to live in and not primarily a luxury\investment vehicle, should our government be enacting laws to limit such activity?
 


Lumpy Talbot

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No
our government like many previous governments were the first things sold to international investors as a job-lot.
 

Lumpy Talbot

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No
Government advice last year was to young buyers to borrow from their parents. 'Da, me and Mary want to buy 216 apartments in Santry and we were wondering...'
 

sic transit

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our government like many previous governments were the first things sold to international investors as a job-lot.
More likely to be a REIT, preferable to 216 owners renting out to AirBnB!
 

PBP voter

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It should be part of the market.

We need funds to build apartment blocks and offer short/medium/long term apartments for rent instead of Jack with his 1 apartment for rent.

But apartments blocks that are already built-probably better to sell them individually because the cry baby mentality seems to think they disappear when sold to a fund.
 

Lumpy Talbot

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No
I'm sure they'll be stout dwellings capable of raising many a family for the greater glory of the nation...
 

Lumpy Talbot

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No
I suspect the only reason places like this are being built is purely for the investor market and that is because interest rates are low and the yield on the overheated market for property actually delivers more than cash in the bank for the investors.

When the market blows as it inevitably will or interest rates rise then it will be realised that many of these places are built only as second thoughts and will turn out to be fast-decaying properties which will deteriorate faster than a Japanese paper house in a strong wind.
 

GDPR

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I suspect the only reason places like this are being built is purely for the investor market and that is because interest rates are low and the yield on the overheated market for property actually delivers more than cash in the bank for the investors.

When the market blows as it inevitably will or interest rates rise then it will be realised that many of these places are built only as second thoughts and will turn out to be decaying white elephants which will deteriorate faster than a Japanese paper house in a strong wind.
Its just another way big fish rip off smaller fish.

Buy-to-let. Lol
 

Hitchcock

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Buchaill Dana

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It should be part of the market.

We need funds to build apartment blocks and offer short/medium/long term apartments for rent instead of Jack with his 1 apartment for rent.

But apartments blocks that are already built-probably better to sell them individually because the cry baby mentality seems to think they disappear when sold to a fund.
Jack with his one apartment still spends his rental income and is much more likely to be a human landlord. This is foreign banks selling to foreign funds.
 

Lumpy Talbot

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No
wonder how much tax is derived for the nation as well seeing as REITs are essentially a way of sheltering an investment from tax depending how they are structured.
 

GabhaDubh

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With the constant drone from RTÉ and the print media of Dublin’s buoyant rental market, no wonder we have a feeding frenzy of investors.
 

Lumpy Talbot

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No
It is a contrived market though. There will be civil servants at the Dept of Finance piling up the warnings in the old cupboard in the hope no one will ask about them. OECD, ECB and so on...
 

sic transit

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Preferable for who and are they the only two options?
The rental market and second one is pretty obvious. What other options do you imagine exist? Most Irish buyers would rather commute from their 4 bed in North Meath than buy an apartment in Santry.
 

GDPR

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The rental market and second one is pretty obvious. What other options do you imagine exist? Most Irish buyers would rather commute from their 4 bed in North Meath than buy an apartment in Santry.
Ireland as you know it. Very small pool you swim in. :D
 

Lumpy Talbot

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No
Green jersey... don't be talking down the market... should commit suicide... the ballsy people... flip it... get on the ladder...
 

Watcher2

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More likely to be a REIT, preferable to 216 owners renting out to AirBnB!
Thats if they rent. Listening to a property expert on the radio last week or the week before and it was claimed that many of these corporate apartment blocks are lying empty. The companies that own them are not interested in rent rolls. They are happy to sit on the empty blocks while the prices increase.
 


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