Wednesday 26 July 2017

'No electricity, no sewage system... and the house went up €31k in 46 days' - woman (30s) caught in 'price hike loop'

Joanne* first started to look at the property market two years ago Stock image
Joanne* first started to look at the property market two years ago Stock image
Louise Kelly

Louise Kelly

This professional woman (late 30s) has seen the prices of properties in her areas of interest - some not yet even livable - rocket in purchase price over the last few months.

Joanne* first started to look at the property market two years ago - but it was a sizable 15k salary bump last year that really intensified her search.

"Before last year, I had a relatively low salary so that really restricted what I could purchase," she told independent.ie.

"After I got the pay bump, I thought that I would have more options but I'm still looking at the same houses. In fact, the properties that I've been looking at before Christmas have jumped as high as double my increase.

"I feel like I'm constantly stuck in that pay loop; every time I seem to make any headway, the cost of the property seems to rise even more."

But that doesn't apply to the standards of houses on offer, according to Joanne, who recently viewed a property in Drogheda.

"I was looking at a house in Drogheda in November that was advertised for €90,000 and I rang up yesterday to arrange a viewing of the property," she said.

"I was told that the property was not fully complete, it had no electricity in yet, it was not connected to the main sewage system - but the asking price had risen to €121,000. That's a hike of €31,000 in just 46 days."

Joanne has a background in construction and drove up to view the property externally. "There was no gutters on the home, it didn't look like there were any pipe works going into the house. I'm amazed at what could have caused that price hike considering the unfinished standard of the home," she said.

"The estate agent told me that there would be an additional cost of between €5k to €10k to get a sewage line installed after the purchase of the house".

Nonetheless, Joanne is planning to bid on the home but believes it is likely that the additional costs will either price her out of the market or that the bank will refuse to lend based on the condition of the home.

"The agent said that there has been a lot of interest in the home and that they have already received an offer of €121k - but they are opening it up for viewing again next Thursday," she said.

Joanne said she is willing to widen her property search to further out the commuter belt but would rather stay north of Dublin so that she could still "drive to friends and family in around an hour".

She remains upbeat about her search for her home but believes she may have to achieve another salary increase - while the market remains stable - to achieve it.

*Joanne is not the interviewee's real name - she would prefer to remain anonymous

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