A patch of Cavan for €129,500

Did anyone who bought property during the 'celtic tiger' boom years think that as Christmas 2009 approaches you would now get a stylish three-bedroom semi-detached home in a top quality development on the outskirts of Cavan town for €129,500? Evidently not, the way properties sold for inflating prices up until the end of 2007 or early 2008. Nonetheless, this week brings more good news for those currently thinking of buying a property in Cavan, and more frustrating news for those who bought when credit was plentiful. Four remaining properties in The Beeches, Drumgola Wood, Cavan Town are now on the market for €129,500. Similar properties in that section of this upmarket housing development sold for €195,000 as recently as early 2008, according to selling agent Declan Woods of Padraig Smith Auctioneers in Cavan. They were also on offer at €149,000 during the intervening period, before reaching this new low, which Mr. Woods believes genuinely does signify rock bottom. "This marks incredible value in a market place where purchasers seem to still fear being the last person to pay over the top for a house," said Mr. Woods. "Prices like this leave no room for debate as to whether or not we have reached the bottom." The selling agent was at pains to point out that while prices have been reduced dramatically the quality has been in no way compromised. With total dimensions of circa 1,300 square feet, it is safe to voice the opinion that these are large three-bedroom semi-detached homes. Newly constructed, they are being sold with what the selling agents describe as "a semi-turnkey finish". Simply meaning that while the kitchens are fully fitted, appliances aren't provided, and that solid wooden flooring is provided on the first floor only, the phrases itself is even an indicator of how much more house-buyers are getting for their money now. The houses are built by Gowna company NOR construction, and have feature fireplaces and are sold painted throughout. Located about 1km out the old Butlersbridge Road from Cavan town, the development is convenient to the Cavan bypass and N3, Cavan General Hospital, schools and the county town with all its amenities. Mr. Woods is sensitive to the frustration of those who bought property during the boom years, noting that there are a lot of post-2002/2003 buyers who are in a situation of negative equity. His words of encouragement focus on the fact that what goes up will come down - but possibly bounce back up again. "Unfortunately the reality of the property market is that it is cyclical," said Mr. Woods. "We can assure you that people working in the industry were not immune from this condition," he added. The news, however, remains good for buyers who can now own a property for prices almost comparable with rents. Mr. Woods gives the following example, for a first-time buyer: Based on an interest rate of 2.35% (APR 2.4%), a mortgage of 92% of the purchase price of €129,500 over a term of 35 years will currently require repayments of €417.00 a month before tax relief and €357.00 after. • Contact Padraig Smith Auctioneers Limited, Connolly Street, Cavan at 049-4362244 or cavan@padraigsmith.com. See their website at padraigsmith.com.