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Ni Houses At Or Below Rateable Value


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A colleague told me the other week she was buying a semi detached house in Belfast. Paying 30K above RV. Part funded by bank of you know who. No other bidders in for the house....crazy..

Sold our semi this year for a good bit over RV and asking price to co-ownership people with everyone happy to pay over the odds, surprised me and I'd was expecting less but then I wear brown tinted HPC glasses.

Larger houses we've been looking at are going sale agreed over RV shortly after they come on and our offers just under RV are getting instantly turned down with one seller telling the EA she was offended by an RV-12% offer and is now complaining about tyre kickers, of course the EA then asks for a better offer now I've been told off...

Fun and games!

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Any thoughts on what it would cost to build (not including site) and finish a property like this ie. kitchen, tiling etc. It looks fairly similar to the thousands of others that appeared on almost every country road in the last 10 years - the dream self-build perhaps. It seems to me that it is the prices in this sector that are the most sticky. Given than these houses represent a huge section of the middle market their price will have to fall eventually if upgraders are to be able to buy them. I would have thought that their actual build cost (+ agricultural land price on which they sit) would be a useful baseline to at least have in mind.

Why value the site at Agricultural Value. Land with planning Permission is worth more than land without.

I am a buyer of land and the cheaper I can get it the better.

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Why value the site at Agricultural Value. Land with planning Permission is worth more than land without.

[Ag. value is theoretically the floor value for a field, even if it has pp, so a fair enough statement. What's a site worth these days well away from town? In my home townland, not much more than ag value.

[/b][/b]

I am a buyer of land and the cheaper I can get it the better.

I'm not sure I see the relevance of this statement. The cheaper I (or you) can get anything the better.

Edited by yadayada
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Sold our semi this year for a good bit over RV and asking price to co-ownership people with everyone happy to pay over the odds, surprised me and I'd was expecting less but then I wear brown tinted HPC glasses.

Larger houses we've been looking at are going sale agreed over RV shortly after they come on and our offers just under RV are getting instantly turned down with one seller telling the EA she was offended by an RV-12% offer and is now complaining about tyre kickers, of course the EA then asks for a better offer now I've been told off...

Fun and games!

My former neighbour's house in BT4 Holywood Road area sold for 240,000 in May, with an RV of 220. Estate Agent, the much derided TempR. So, yes, it happens.

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Why value the site at Agricultural Value. Land with planning Permission is worth more than land without.

I am a buyer of land and the cheaper I can get it the better.

I suppose I'm trying to guesstimate the intrinsic value of a 3/4 bed, 2 reception, fully kitted MacMansion. When would it's price equal it's value? Could you build for the RV?

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I suppose I'm trying to guesstimate the intrinsic value of a 3/4 bed, 2 reception, fully kitted MacMansion. When would it's price equal it's value? Could you build for the RV?

The RV were values Estate Agents places on houses 2004/2005 which were to be the OMV of that house in Jan 2003 (I think). First of all we have to accept that Estate Agents can value houses correctly and secondly are able to nett it back to a value on a date a year or two earlier. Also their wasn't enough agents to do it. They recruited like mad. The lady who visited my house had no idea about property.

At best RV is very crude. I am not saying it is too low a value or too high, its just not accurate. In many cases it could be 20% lower than the true value would have been and in other cases it could be 20% too high. It was just crude.

Its price equals its value when someone buys it on the open market. At the moment I would imagine that price to be below its construction cost on a site (at todays market value).

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It could also be that the site value is down at agricultural levels?

No. I wish it was. Agri values range from £5k per acre to as high as £15k in the oil rich counties.

Land with planning permission is selling for more than that. One off plots, with live planning on 1/4 or 1/2 acre would still sell at £25k to £50k depending on location.

There are apartment sites in fermanagh, requiring underground carparking, where the overall construction cost is more than the sales value of the completed units, therefore one could argue for a 'negative land value', which is impossible.

If the house and planning is in a location where people want houses, then the site value will be more than agri.

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The RV were values Estate Agents places on houses 2004/2005 which were to be the OMV of that house in Jan 2003 (I think). First of all we have to accept that Estate Agents can value houses correctly and secondly are able to nett it back to a value on a date a year or two earlier. Also their wasn't enough agents to do it. They recruited like mad. The lady who visited my house had no idea about property.

At best RV is very crude. I am not saying it is too low a value or too high, its just not accurate. In many cases it could be 20% lower than the true value would have been and in other cases it could be 20% too high. It was just crude.

Its price equals its value when someone buys it on the open market. At the moment I would imagine that price to be below its construction cost on a site (at todays market value).

You could always go by the RPPI index which shows prices at 13% below 2005 levels if you question the broad accuracy of RV - which is, in any event, open to appeal and challenge on an individual basis by anyone.

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To be honest I have more sympathy for business users when it comes to rates. At least residential users can see some of the services they receive. Besides rates are small scale (1.5 billion) compared to the 10 billion we get given from London every year.

ROI water rates - the equity v utility conundrum - not forgetting ability (and inclination) to pay - or not.

Water charges plan is 'unfair' to families

Disagreement over how much will be supplied free of charge

http://www.independent.ie/irish-news/water-charges-plan-is-unfair-to-families-29503293.html

Edited by Shotoflight
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Just thought I'd share my experience with you all on this thread. Ive had a few posts on the forum (mainly the renting section) but I have recently just bought the house I rented - from the bank - as the LL was in diffs with the bank. The estate agent acting for the bank came round and sucked through his teeth at prices in this 'highly sought after location' and 'quiet neighbourhood within the city' (BT8 area) and said that I would be paying a premimum to buy it off him before it went to market. Long story short (4 months it took from start to finish) I just completed at 30% less than RV AND under the stamp duty threshold! Interestingly when we moved in 5 years ago we saw an old estate agent for sale brouchure in one of the kitchen cupboards - the house was listed at £295k in 2007 :-)!! SO dont listen to estate agents and offer what you are happy to pay to live in a home and you will get good value out there. Our mortgage is £300 a month less than what we paid in rent and as we have a young family we thought this was the right time to buy.

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Just thought I'd share my experience with you all on this thread. Ive had a few posts on the forum (mainly the renting section) but I have recently just bought the house I rented - from the bank - as the LL was in diffs with the bank. The estate agent acting for the bank came round and sucked through his teeth at prices in this 'highly sought after location' and 'quiet neighbourhood within the city' (BT8 area) and said that I would be paying a premimum to buy it off him before it went to market. Long story short (4 months it took from start to finish) I just completed at 30% less than RV AND under the stamp duty threshold! Interestingly when we moved in 5 years ago we saw an old estate agent for sale brouchure in one of the kitchen cupboards - the house was listed at £295k in 2007 :-)!! SO dont listen to estate agents and offer what you are happy to pay to live in a home and you will get good value out there. Our mortgage is £300 a month less than what we paid in rent and as we have a young family we thought this was the right time to buy.

Sounds like a bargain. Fair play to you.

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  • 429 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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