The catalogue for the next Allsop Space auction, taking place on 6th July, finally issued earlier this evening at 10pm. Regular watchers of the Irish auction scene will be surprised to see that Castleforbes does not feature at all. In fact, there are a few surprises in the line-up…
At first glance, we can see that the pricing model has changed once again. The flat 10 per cent yield calculation is no longer in use. For example, we can see a yield of 9 per cent return on a two bed apartment in Dublin, while a house in Newbridge shows a 25 per cent yield (based upon the stated max reserve prices). I don’t disagree with the variance, I am merely noting the apparent change in the reserve pricing structure.
The quality of properties on offer has definitely increased overall, however, there are a few duds in there and once again buyers and investors are advised to learn the difference between a cheap property and a cheap price!
The following properties, which failed to sell at earlier auctions, are re-offered at lower reserve prices (not including units at The Tannery, Dublin 8):
Lot 23 – Shortts Bar & Crystal Nightclub, Waterford €410,000 (down from €495,000)
Lot 60 – 11 Tullfarris Village, Blessington, Co. Wicklow €47,500 (down from €75,000)
Lot 61 – 10 Tullfarris Village, Blessington, Co. Wicklow €47,500 (down from 75,000)
Interestingly, there are a number of lots re-offered that sold in recent Allsop Space auctions, most notably:
Lot 52 The Mill House and Mill Mews, in Schull, Co. Cork sold in July 2011 for €560,000, now has a reserve price of €270,000
Lot 63 – 41 Seville Place, Dublin 1 sold in March for €90,000, now has a reserve price of €35,000
Several conclusions might be drawn when this happens, there are many reasons why a sale can fall through; however, it is worth noting that when purchasing at auction, a legally binding contract is entered into by both parties (the buyer and the sellers) when the hammer falls.
Also curious, Lot 67 – Fuchsia Cottage, ChurchCross, Skibbereen in County Cork was offered for a max reserve of €150,000 in November 2011 only to be withdrawn in the day. It is now offered with a max reserve price of €75,000
There are many houses in this auction line-up that will suit first-time buyers and indeed, any home buyers thinking of trading-up. Houses nationwide start from €20,000. Commercial investors will have a tougher time spotting a bargain here (unless unlicensed pubs are the next big thing!).
Of particular interest are the following lots:
Lot 12 – 14 houses on 3 acres at Castlemaine,County Kerry (12 km from Kerry airport), with lapsed planning permission for 9 apartments, 2 retail units and a 12 bed hotel – reserve price €50,000 (yes, €50,000, not a misprint)
Lot 16 – An unlicensed public house and 5 bedsits in Waterford City for €50,000
Lot 24 – 3.36 acres at Easkey, Co. Sligo for €5,000
The castle, which consists of three floors, is located in heart of Athy and dates back to the early 15th Century. As per the property description, the castle was previously owned by the Earl of Kildare. I am genuinely looking forward to hearing what auctioneer, Gary Murphy,will have to say about this unique lot!
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