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Property auctions fast becoming a new way to sell in South Africa
Prime Auctions and Urban Link have partnered to bring you the best of Property and non – distressed Auctioneering to maximise your Property’s value. Contact us today and “Just Auction It”!
Non Distressed Online Property Auctions are taking the World by Storm.
Not only do Sellers enjoy the Auction benefits of finding the perfect market value that is only revealed by Auctioning, the added benefit of selling for cash with immediate, unconditional sales, appeals to the serious Auction Sellers – no waiting for bond approval nor having to first sell the Buyer’s property.
Buyers love the fact that they can bid from their phones, tablets, and Computers – wherever they are in the world!
Old fashioned Auctions are ‘distressed’ like a ‘Sheriff’s Auction’ where Buyers usually cannot view nor even gain access to the distressed’ Properties that are home to squatters or worse that they have to deal with, they are also exposed to unknown arrear expenses they have to pay – sometimes hundreds of thousands of rands owed for utilities – it’s a nightmare.
Urban Link in association with Prime Auctions Online non – distressed Auctions come with vacant occupation – guaranteed possession for Buyers – and all arrears paid up to date, amongst the many benefits of our unique Auction process with only qualified personal appointments with proven cash buyers.
Contact Us Today via email to: keeganh@urbanlink.co.za to find out all the benefits unique to us and sell your Property effortlessly for the best possible market related price.
Let’s auction it!
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Can we avoid closing our struggling business?
Losing all your investment into a failing business must be soul destroying! Lets see if there are solutions to the predicament.
There are numerous news articles in DUBLIN LIVE and news articles in the Galway Beo that are constantly reporting on the closure of yet another small enterprise, mostly in the food industry, and one would have to wonder why, and can the dreadful losses suffered by the entrepreneur be recouped, if so to what extent?
Sadly, business closures are a reality in the current market conditions, and although numerous factors can contribute to a business failing, we need to look at how to avoid a total loss. “Although key monies are falling in Ireland, it is not impossible to recoup some of your losses” says Raal Nordin CEO of DEAL CHASERS, a specialist business broker dealing with the sale of businesses in Ireland.
Unfortunately, many business operators are great at running their own coffee shop, restaurant or service business, but when faced with severe cash flow problems they tend to find advise that is not always the only {or correct} solution. Company liquidators are of course fast to call for liquidation, and the business owner being stuck for options, and being in a panic, embraces that option all to fast.
A solution is to try and sell the business first. Of course there is no way your initial investment is going to be recouped, but it beats having to file for liquidation. If you come out at the other end with no debts, that’s all that matters and you have a clean slate to go it again when the market conditions return to a more favorable environment. Unlike liquidators charging heavy upfront fees, a business broker earns his/her money based on performance, if the business does not sell, you don’t owe any commissions.
More often than not, a new start-up has put ALL their monies on the table to open a business, after all, they want it to be the best! Its sad to lose all your monies and be defeated. “If I look at all the businesses closing, its sad to think that we could have assisted in rescuing the deal, getting some of the investment back, and retained staff and suppliers. To many economic benefits are wiped out by a closure or liquidation” comments Raal further. “We often deal with Landlords on behalf of the tenant to ensure a smooth lease assignment of the premises, joined to an equipment sale and inclusive of some goodwill money” It all makes for a sane solution.
Advise to any business owner right now is to look at various options before simply shutting shop.
Author: Raal Nordin Managing Director Ireland
Deal Chasers Ireland – “Innovative Business Brokers”
Tel: 0818 183 037
Web: www.dealchasers.ie
Email: sellmybusiness@dealchasers.ie -
Are key monies falling in Ireland?
Key money is a typical term described for a monetary benefit to enable an existing operator to exit his/her lease with a bit of a cash token for leaving the opportunity. At times, the commercial premises are equipped and “Ready to trade” – so what is the market doing in the last quarter of 2023, entering 2024
Key monies, first and foremost are not to be confused with the sale of a business. An existing business will typically have a past trading period of some 5, 10 right up to 20 or 30 years, with an existing infrastructure, accounting systems, staff, trading stock and a huge goodwill factor, and a decent asking price which is of course supported by proven turnovers and nett profits. On top of that, often client contracts/data base of suppliers and an asset list also form part of the sale value. Key money or “lease sales” are sometimes peddled by auctioneers, or a more modern word, estate agents. But do they understand the business as much as fully fledged business broker would?
DEAL CHASERS is an International business brokering franchise chain and has been trading in Ireland for 8 years, fast becoming the GO TO place for business sellers. We have seen a severe fall of key monies in Ireland the past 18 months, and shops or businesses are simply closing their doors instead of at least trying the key money route. “I don’t understand why“, says Raal Nordin, the mastermind behind Deal Chasers. “You are far better off selling your lease and infrastructure than simply handing the keys back“. Maybe some of these operators are inexperienced in the Landlord/tenant arena and think that slight arrears may hinder them from that route, which is far from the truth. Most commercial landlords are not interested in the problems, but in solutions, and finding a replacement tenant that satisfies the landlords criteria, and gives the seller a few notes in exchange will go a long way in clearing the burden. After all, no one wants to leave a trail of debts.
It is most unfortunate but factual that the next operator is going to score a bargain, because the defaulter has overspent on infrastructure, compliance, planning approvals, fire certificates etc, and was obviously hoping to recover the expenditure in the long run. But that’s the way the world works and one can only do their best to assist the exiting tenant.
Despite all that is being said, the news is full of “closures” and its sad to see. More often than not, someone has given their life savings to a business that lasted only 2 years or so. That is why it is important to try get something back and at least clear any financial burdens that may arise from a premature closure. Casa Del Toro was on our books at some 150k a few years back but the seller refused a few good offers. I see it has now met its demise. Read here.
Lets get back to the headline of key monies falling, “and key monies are certainly falling” says Nordin. “We have some 45 businesses for sale in Ireland, some of which are key money opportunities only, and what we could achieve for those opportunities pre Covid versus now is simply off the charts“. Post Covid saw a mini rebound, but quickly squashed by the weak excuse of the war in Ukraine pushing up ESB charges. In a very recent article the ESB and the government should be embarrassed about, it is bragged about how profits surged some 30% on the previous year. Hardly a caring government displacing the SMME. Read that article here: Operating profit at ESB Group has seen a 30% increase during the first six months of the year to €676m during a period of high energy prices for Irish customers.
Business brokers who assist with key money sales often achieve a far higher price than a local auctioneer, due to possessing a large data base of buyers that want to open a business and often see the benefit of an existing set up as an easy platform to enable the opening of their new concept. If you are looking at obtaining a free valuation on your business, be it an existing business or just a quick key money sale to exit fast, feel free to reach out to us on VALUE MY BUSINESS and we will be in touch immediately.
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I battled to sell my house, and incurred a huge sum of lost fees
I battled to sell my house, and incurred a huge sum of lost fees
This headline caught my attention! So let us unpack that familiar statement.
Real estate sales can be frustrating, especially if you have found the ideal home to upgrade to, and need to move on the deal fast. The Irish property sales process is very much in line with UK processes, and sadly a sale can go wrong right up until contracts are signed, often two months into the deal. In a recent article in the INEWS UK, a seller had elaborated on the frustrations of no less than 3 crashed sales! As frustrating the process is, the Irish government is looking at ways of paying attention to the tedious, arduous and protracted practice of the conveyance process. An article published recently, highlights the welcome news in the property sector. There is no doubt in my mind that their attempt at fixing the issues at hand will be a step in the right direction, but they remain a fair bit away from ensuring more transparency, especially from the old fashioned and slow solicitors. It will be called the Seller’s Legal Pack for Property Buyers Bill 2021 and has the potential to speed up the buying – or rather, the conveyancing time of the transaction.
As great as the news is, often a seller needs to sell fast and legislation alone wont always speed up the old hands at the game. URBAN LINK has embarked on a sure fire way to sell your property, called SURE SELL which is an auction product tied to traditional property sales, which is why the term Modern Hybrid Auctioneers is the new buzzword in the sales process.
Raal Nordin from Urban Link explains that their auction process is NOT just a glorified bidding platform used by many agents – or auctioneers, but a top of the range, transparent product with an easy to use interface and registration process……… and when the hammer falls, SOLD MEANS SOLD! There will be no renegotiating and no conditional sales.
In conclusion, if you are looking to SELL your property, feel free to give us a call or email and lets us assist you on a trouble free way to conclude a fast sale!! Find us on admin@urbanlink.ie or 0818 524 444
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Private Landlords in Ireland – why are they selling up….
Rental demand is strong and rents are peaking, so why the exodus?
Looking at recent news articles its all to easy to see that there is a buzzword around Irish property investors who are leaving the residential letting market and searching for other avenues to generate rental returns.
These avenues are often outside of Ireland and some Landlords are even looking at NI – Northern Ireland, as it is simply a hop skip and a jump away, it is not oversees per say and from Dublin, their property is a mere 1 hour and 30m away, easy to facilitate re-letting, spot inspections and maintenance.
The city of Belfast seems to offer the best returns at the moment and rental yields of up to 9.5% can be earned. In a early 2023 news article, the facts seem to stack up well. An astute landlord may want to talk to their accounts about the benefits of setting up a company in UK in which to hold the investment which assists with tax benefits on rental properties.
Savills did a survey recently and it seems that Belfast remains a strong buy to let market, albeit at lower returns of Coventry in UK which is yielding some 12.5% Obviously Coventry is far away, but then again, the services of local estate agents can be utilized and their fees are a direct cost so less tax to pay on the rental income.
This article is written by Raal Nordin of URBAN LINK who has no financial benefit of any of the information, it is merely for interests to the Irish property Landlords who are looking at avenues the lucrative buy to let market.
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Property prices in Ireland on the rise!
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Urban Link Ireland Property Report 3rd quarter 2023
House prices are rising amidst a shortage of available properties, Raal Nordin, MD of Urban Link Ireland noted that in a recent report by daft that there are 20% less properties available on the market today than the same time last year, attributing to the rise in prices. As much as those figures are accurate, we have to ask, are the market values of residential properties increasing in the short term because of the stock shortages, and will they decline when the building activity picks up? Lets see what the professionals at daft have to say:
“Housing prices in the third quarter of 2023 were 1.1% higher than a year ago, according to the latest House Price Report released today by Ireland’s largest property website, Daft.ie. The typical listed price nationwide in the third quarter of the year was €322,602, 3.7% higher than a year ago and roughly 13% below the Celtic Tiger peak. Prices in Dublin in the third quarter of the year were just 1.4% higher than a year ago, the lowest rate of inflation since prices started to rebound in late 2020. Looking at the second quarter compared to the first, prices rise – and by an average of 2.4% nationally. Prices in Cork city were just 1.7% higher, year-on-year, while in Galway, Limerick and Waterford cities, the rate of annual increase was higher – at between 3.9% and 4.7%.Outside the main cities, inflation was typically greater, with year-on-year increases of 4% in Leinster, almost 6% in Munster and just over 8% in Connacht-Ulster. The number of homes available to buy nationwide on September 1st stood at just under 12,200. This is down over 20% year-on-year, compared to the almost 15,500 available to buy on the same date a year previously. Housing prices in the third quarter of 2023 rose by 1.1% compared to the second quarter of the year, according to the latest House Price Report released today by Ireland’s largest property website, Daft.ie. The typical listed price nationwide in the third quarter of the year was €322,602, 3.7% higher than a year ago and roughly 13% below the Celtic Tiger peak.
Trends in prices differ considerably across the country. Prices in Dublin in the third quarter of the year were just 1.4% higher than a year ago, the lowest rate of inflation since prices started to rebound in late 2020. Similarly, prices in Cork city were just 1.7% higher, year-on-year, while in Galway, Limerick and Waterford cities, the rate of annual increase was higher – at between 3.9% and 4.7%. Outside the main cities, inflation was typically greater, with year-on-year increases of 4% in Leinster, almost 6% in Munster and just over 8% in Connacht-Ulster.
The number of homes available to buy nationwide on September 1st stood at just under 12,200. This is down over 20% year-on-year, compared to the almost 15,500 available to buy on the same date a year previously, and remains well below the 2019 average of 24,200. The fall in availability, which started in the middle of the year, can be seen in all major regions of the country” – quoted by daft.ie
Average list price and year-on-year change – major cities, Q3 2023
Dublin City: €433,101 – up 1.4%
Cork City: €337,345 – up 1.7%
Limerick City: €262,499 – up 4.2%
Galway City: €367,283 – up 3.9%
Waterford City: €238,595 – up 4.7%
Rest of the country: €275,442 – up 5.4%
Article by Raal Nordin – Urban Link International
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Are estate agents hiding best offers from sellers?
It seems the practice is rife in the UK, are we to assume its no different in Ireland?
In a recent article in the Telegraph it was highlighted that estate agents (or the old fashioned name in Ireland, Auctioneers) has been accused of hiding the best offers from sellers. The question then arises whether that practice is alive and well in Ireland.
One would never know, says Raal Nordin of URBAN LINK and a good guess is why would it not? There certainly in no control over the discussions between potential buyers and the agency. Although Estate agents in Ireland are regulated through the PSRA (Property Services Regulatory Authority) and a “record” of all bids must be in the property file for whenever the PSRA does an inspection once every two years per agency, there certainly seems ample room for total manipulation of any of these records.
So, lets assume the practise of not submitting all offers is happening in Ireland, what can a seller do to prevent this? I don’t think anything can be done to prevent this says Nordin, other than to stick to larger estate agencies or sell your property through auction. Now when we say “through auction” the only honest and transparent auction will be through a company that has a fully fledged audit trail auction system. Our company does have that very system and all our auctions are 100% transparent, ethical and void of any possible price manipulation. The Daft auction platform, amongst many others are mere bidding platforms and can be open to manipulation.
In closing, it is best to avoid one man band estate agencies in smaller towns, see article in recent media regarding pretty common tricks of these guys. “read here” so remain vigilant. Raal Nordin www.urbanlink.ie
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Why should I use a business broker in Ireland to sell my business
Selling your business in Ireland is a big decision and best practice is to use an agency that seems to be the go to place for this service.
Using a business broker in Ireland to sell your business can offer several advantages and benefits. Business brokers are professionals who specialize in facilitating the sale of businesses, and they can play a crucial role in the process. Here are some reasons why you might consider using a business broker in Ireland to sell your business:
- Expertise and Experience: Business brokers have extensive experience and expertise in selling businesses. They understand the complexities of the process, including valuation, negotiations, and legal requirements, which can be challenging for a business owner to navigate alone.
- Valuation Guidance: Business brokers can help you determine the fair market value of your business, taking into account various factors such as financial performance, industry trends, and market conditions. Accurate valuation is critical to attracting potential buyers and getting the best possible price for your business.
- Marketing and Exposure: Brokers have established networks and marketing strategies to promote your business to a wide range of potential buyers. They can advertise your business discreetly and professionally, which can be essential to maintaining confidentiality during the sales process.
- Qualified Buyer Screening: Business brokers can pre-screen potential buyers to ensure they are financially qualified and serious about the purchase. This can save you time and prevent you from disclosing sensitive information to unqualified or non-serious buyers.
- Negotiation Skills: Brokers are skilled negotiators who can represent your interests during price negotiations and deal structuring. They aim to get you the best possible terms and conditions for the sale.
- Confidentiality: Maintaining confidentiality is crucial when selling a business. Brokers can help protect your sensitive information and ensure that only qualified buyers have access to it.
- Time Savings: Selling a business can be a time-consuming process. Business brokers can handle many of the time-consuming tasks, allowing you to focus on running your business during the sale process.
- Legal and Administrative Support: Brokers can assist with the legal and administrative aspects of the transaction, including preparing the necessary documents and contracts. They can also help ensure that the sale complies with Irish business laws and regulations.
- Smooth Transition: Brokers can facilitate a smoother transition of ownership by coordinating with accountants, attorneys, and other professionals involved in the sale. This can help minimize disruptions to the business operations.
- Maximizing Sale Price: Ultimately, business brokers aim to help you maximize the sale price of your business. They have the experience and knowledge to create a competitive bidding environment, which can lead to better offers from buyers.
While using a business broker can come with a cost in terms of commissions or fees, many business owners find that the benefits outweigh the expenses, especially when it comes to achieving a successful and profitable sale. However, it’s essential to choose a reputable and experienced business broker with a track record of successful transactions in your specific industry and region.
Article written and sponsored by Raal Nordin who is the founder of DEAL CHASERS
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Derelict housing grant unwrapped
Tips on obtaining the derelict housing grant in Ireland
No doubt, most of us by now have heard about the vacant or derelict property grant, but what do you need to know is the question on everyone’s minds!
Let us unpack that for you. Lets assume that you are on www.daft.ie or www.myhome.ie and stumble across a well priced fixer upper. Buy to let is still very popular and despite the numerous pitfalls and headaches, remains attractive for the brave, but clever person. So what to do?
The grant is €50,000 to renovate a vacant property, and €70,000 if it is a derelict property, and you can also get the grant twice, once for a property in which you live, once for a property to let out.
The Vacant Property Refurbishment grant allows you to refurbish vacant and derelict residential properties. You can live in the property or rent it out.
And don’t forget……one can also obtain an additional €7,500 towards expert conservation advice in respect of a traditional farmhouse.
In understanding all this a bit better, feel free to bid on a property subject to grant, and then you apply for the grant to the relevant local authority and there should be a vacant homes officer in each local authority in Ireland.
To qualify for the vacant property refurbishment grant you need to fulfil the following criteria:
- Property must have been built before 2008
- It must have been vacant for 2 years or more
- You must own it or be in the process of buying it
- You must not be a registered company or developer
- You must live in the property when it has been refurbished or make it available for renting
- Your tax affairs must be in order
- You must have paid LPT, if applicable
What amount is the grant?
From 1st May 2023, the grant is €50,000 to renovate a vacant property, and €70,000 for a derelict property, respectively. The grant amount is inclusive of the vat cost of the works.
So let us discuss what is covered on the construction side.
The amount of grant is based on a cost assessment by your local authority of the different types of work which includes:
-demolition work and site clearance
-substructure work including foundations, floor slabs, rising walls, damp proofing
-superstructure work including works to chimneys, walls, floors, stairs, roof, structural timbers
-external finishes including door, windows and windowsills
-internal completions including doors, frames, architraves, ironmongery
-skirtings
-fascias, soffits, rainwater goods
-roof completions including downpipes, gutters, fascias, soffits
-painting and decorating
-tilling
-roof finishes
-plumbing, heating, ventilation, power, lighting
-kitchen units
-sanitary ware
-work on the land around the property
-extensions
-professional services for the work eg surveys
The grant does not cover demolishing a property and rebuilding a new one.
Applying for the grant…..
You must send the completed application form and supporting documents to your local authority and you require the following:
- Proof that the property is vacant
- Proof that you own it or are in the process of buying it
- A quote for the work
- Planning permission, if needed
- If you are applying for the top up grant proof that the property is derelict
- Sign that you agree to repay the local authority if you sell the property within 10 years, or if you rent it out having agreed to live in the property
- Meet minimum standards for rental accommodation if you are renting it
- Sign an affidavit that you have not obtained a previous grant in the same scheme
The application form has a list of supporting documents you will need for the application to the local authority.
Once you have made your application the local authority will send a qualified person out to review the work to be done and assess the proposed cost. If you are successful you will receive a letter of approval from the local authority.
Once your application has been approved you have 13 months to complete the works.
You will then have to send information about your contractor, including their tax number, to the local authority along with your bank details.
When the work has been completed the local authority will check the work and will, if satisfied with the work, get you to sign a charge over the property. This is security for the grant and to ensure you live in the property or rent it out for at least 5 years.
The charge will be registered with the Property Registration Authority and will last for 10 years.
It is only after a satisfactory inspection by the local authority and after you have signed the charge document that you will receive the grant.
There is an appeals process available should your grant not be successful.
Do I pay back the grant?
If you live in it for less than 5 years you will have to repay the full grant amount.
If you live in it for more than 5 years but less than 10 you repay 75%.
If you live in it for more than 10 years there will be no payback.
Application form and frequently asked questions
Visit this page of the Government website-Department of Housing, Local Government and Heritage-for more information about this scheme.
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Beware of the Estate agent in small towns in Ireland
Should I use a local estate agency in smaller towns in Ireland to sell my property or rather employ the services of a franchised business in a nearby larger town?
My opinion is rather blunt unfortunately, especially in smaller towns. Its an old boys club in smaller towns and there is a definitive cloak and dagger way of doing business in a small town, and it is only the real astute knowledgeable younger seller that will be wise to rather use a more prominent larger agency in a nearby bigger town to sell your property. Otherwise, your property may sit on the market for months.
And there is a reason for that……
Let us use the example of Templemore (Example only, not based on facts) A local estate agent has typically been trading for the past 40 years, 99% under their own surname. They will historically be an older male and well in with the local councillor, the town who’s who, and other business owners. These are all friends with the estate agent because he is first to know who is selling, or going to be selling due to death, divorce, or dread disease, which is the top 3 motivators for “must sell urgently” properties. His office is the magnet for their wealth.If you look at the average sales value in smaller towns, you could be anywhere between €80,000 and €250,000 as a rough guide. The fee for estate agents is typically around 1% to 2% of the sales value, meaning on a sale of €150,000 the local agent earns around €2,000 or €2,500 plus adverts/brochures and so forth.
Now the estate agents’ mate is always on the hunt for below market properties and wants to increase his/her portfolio……and here the game begins. Estate agent gets the mandate and hardly works it….and the listed price of €150,000 is not advertised. POA (Price on asking) is the red flag normally because most buyers ignore those adverts. Any incoming offers won’t be transparent and you often see a few holes punched into the ceilings of older homes that are vacant or where the seller is now at the old age home. Ceilings are cheap to fix, but a first-time buyer is fearful of anything to do with ceilings and roofs.
The marketing is slow, and the agent keeps the seller abreast of his version of why the market is slow……gently nudging the seller towards reducing the price. So, let’s say the real value is €150,000, and every €10,000 LESS the asking price that an investor picks that up for, goes toward the value equity of his portfolio. Let’s say the agent gets a little kick back of €1,000 for each €10,000 he reduces the price for. On reducing for €20,000 he has just doubled his income. And I will hazard a guess, €2,000 is chump change in my assumption. All of this is of course just a hunch, but it would be possible, don’t you think?
The argument on the other hand is that the seller is of the opinion that the “local estate agent” knows the market, been part of the towns history, attends his church and the wife bakes lovely scones…..and he is now perceived to be your safe bet to look after your interests because he knows all the prices/values. Maybe, maybe not? But so does the bigger agency in the next bigger town, and more so, they have the tools of technology at their fingertips to be able to do an even better job at doing a fair market assessment of your property. This agent also often has no or little connection to a smaller town and most often have younger generations in the sales team.
I cant tell a seller what to do with a property, other than be vigilant.
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Raal Nordin 