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Quotes of the Week

"Building a basic house should be no more complex or expensive than this. Unfortunately, a lot of vested interests ensure that it is. Governments, banks and employers all benefit from having a society yoked under mortgages – it ensures control, compliance and vast profits through taxes and interest payments. Now might be a time to reconsider all this. A house should, and can, cost the price of a car – something you repay over a year or two, instead of your life." (Manchan Magan, in the Irish Times)

“This is a first and important step in the overdue process of bringing the buying and selling of properties here into the 21st century,” says Kevin O’Higgins, the president of the Dublin Solicitors Bar Association. (Irish Times.)

Commenting on the permanet tsb/ESRI House Price Index results for February, Niall O’Grady, General Manager Business Strategy, permanent tsb said “while affordability is improving for customers due to the series of rate reductions and two consecutive years of reductions in house prices, customers seem unconvinced that the market has bottomed out yet.”

"Auctions are the best way of gauging the market and when a property like this sells at €1.6m, it indicates we are at or close to the bottom of the market." (Yvonne Hogan, Property Editor at Independent)

Marking Bergins 25 years in business: CONGRATULATIONS

Name: Denis Bergin, FIAVI, Geraldine Bergin, Sara Bergin and Nicola Williams

Company: Bergins Valuers and Estate Agents Ltd

A bit about your career to date:
Denis Bergin began his career 49 years ago, in what was then known as Smith Griffin. Here he met Geraldine Hilson, and after they had married, he became a founding partner of Fitzgerald and Partners with Alexis Fitzgerald. Denis helped to merge Fitzgerald and Partners with Sherry’s and then in 1984 he and Geraldine started Bergins.

A small but discrete clientele moved with Denis in 1984 and this client list has grown through the years, working with Bergins on the basis that a very personal and private service is attained.

In the last 8 years Denis and Geraldine have been joined by two of their three daughters – first the youngest, Sara, and latterly, Nicola, the eldest who moved from the IFSC to help take the company in to the next generation.

Denis is a Fellow of the IAVI, Secretary to the Irish Timber Growers Association and has various ancillary memberships with industry groups and bodies.

Sara has completed her BA in Property studies in Bolton Street, and Nicola has a Degree in Economics from Trinity College in Dublin.

Most of their business is built up by word of mouth, and all of their clients know that they can be assured of privacy and discretion at all times.

Any big news/breakthroughs in your company/career to mark/celebrate?
Apart from celebrating our 25th Anniversary this March, a fine achievement in its own right, we have also been lucky to overcome a few hurdles in the last few years, which lead us to believe that the current Recession is just another bump in the road!

In 2001 Denis was hit with serious viral heart failure, but made an amazingly speedy and 100% recovery. In 2005 Nicola was diagnosed with Cancer, while pregnant, but has also made a full recovery. In 2006 the offices at 17 Upper Baggot Street, were destroyed by fire, the week before Christmas. Following a lengthy refurbishment, the building was finally restored to its former condition, and we are back in our bright and airy offices, delighted to be where we have been based for the last 15 years.

Denis and Geraldine remember well what it was like to work through previous recessions, but although this is on a scale never seen before, their experience allows us to view the situation in a very practical manner. Having faced a number of hurdles in the last few years, challenges are very easy to handle and we relish working hard to be well placed for the recovery of the economy, when that eventually happens.

What do you like most about working in property?
The reason we are in this business is because of our clients.

We meet some amazing people, hear some wonderful life stories, and get to be part of some life changing decisions for families, businesses and even charities.

We approach this business with a very different attitude, and are mindful of the fact that we are there to help people. We have a huge sense of achievement when a deal is closed and our clients can say that the process has been handled in a way that made them, and perhaps their buyer or tenant, feel very comfortable indeed. This, and only this, helps our reputation to grow by word of mouth.

How did you get into the property business?
By accident and by birth! For Nicola and Sara, it was there from the moment they were born, so it was inevitable really.

What do you need a lot of to succeed in your speciality?
Patience

What do you dislike about working in property?
Some of the greed and impatience we witnessed over the boom years. It did not help then. It will not help now. Moderation is key.

What’s your view of the market at the moment?
There are plenty of people actually looking, as we have seen with properties that we have just put on the market.

They are hindered, in many cases by the banks, but there is money out there to spend, and people, when they see value, are actually buying.

At the moment, with liquidity in the market being so low, another phenomenon we are seeing gain popularity, is the onset of “Swapping”.

It has worked in some notable high profile sales in the last year, and is translating down the market. Examples that work particularly well are larger houses, where families have flown the nest. Where the house just wont sell in this market, it might be traded up to by a younger couple, with a smaller more manageable house to offer. Many of these deals are being conducted quietly, but we think that with the advent of “swapyourhome.ie” that this will become more widespread.

What do you think the Irish property business needs most?
Incentives – Unfortunately, buyers and investors with cash need to have their confidence restored, and in a significant way.

We see a number of our clients, waiting for something to happen in the market, before they will commit to buying on a recovered scale.

Having said that, we have a number of excellent acquisition instructions under way, which indicate that some of our more skilled investor clients are of the opinion that there is definite value out there.

On the residential side, we are seeing some movement, again with large numbers of people, who sold in the last year, now coming out of the woodwork to pursue properties of value. We think that these are taking their time, just in the short term, until any reductions in Stamp Duty are officially ruled out on April 7th A temporary reduction, or abolition of this rate, where it is adding nothing to revenue coffers at the present time, would make a significant difference to the market, and help with those last confidence issues!

Where in the world would your favourite properties be found and WHY?
Any European city. They know how to do Apartment living, with great amenities, storage and space. Our urban sprawl and the issues we now see with empty estates, across the “Suburbs” of Dublin, i.e. Westmeath, Wexford etc, all stem from our inability to look at city living with a European eye.

What are you favourite buildings in Ireland and WHY? (Houses, developments, commercial buildings etc.)
Houses – 31 Wellington Place, A truly stunning, detached and graceful property. Private, secure but centrally located, with over 6,000 square feet of living space.

Developments – Spencer Dock – Beautifully landscaped, very well finished, and with an array of sizes and shapes of units, is ideal in a modern city, to encourage a broad spectrum of residents. It also helps that this development is exceptionally well managed.

Commercial – There are far too many commercial buildings lying empty at the moment, and they lose their lustre and sheen as a result.

Do you have a good anecdote/story/joke with a property theme?
At a recent conference, one of our country colleagues recounted how a farmer had told him in recent months, that “the A##e is after falling out of de recession!”

What’s the most bizarre thing you’ve ever encountered in the world of property?
Two spectrums of society! There are those who have had large and publicly flaunted sums of money and assets in recent years, not willing to be flexible or to help those in need. Then there are those, very private and wealthy individuals, AND those who just get by, but who will go out of their way, particularly now, to help those around them. It’s the latter attitude that will get us through this.

We also see now a number of people who truly believe that they are the only people being effected by the global downturn. That really makes us gasp! The one positive thing you can say, is that we are ALL in this together!

Do you have a favourite book about property or about business in general?
Thoms Directory – best bit of gossip in years!
Where do you live/work and what’s it like in terms of a place to live/work and the property mix?

Denis and Geraldine have always lived 5 minutes walk from our offices. They know that to move in to the city was a decision met with derision 25 years ago, but now, as commuting becomes more expensive and difficult, and more and more people recognise the value of living so close to work, they are delighted to be where they are.

Sara lives off the South Circular Road, and similarly enjoys a stress free commute to work, on foot or by bike. Being young and not yet burdened with children, she and her fiancé enjoy a great social life, living so close to town, but also find now that they are regularly asked to put up guests!

Nicola lives in Stepaside with her husband and son, and loves the clean air and beautiful scenery, but finds the commute tedious at times. One day, she hopes to get closer to her parents in Dublin 4! Maybe, if prices stay competitive in the next few years.

What are the main issues facing that area?
Dublin 2, 4, 6 and 8 are all very well blended by way of social mix, and this is evident in the mornings, as you see mums and dads walking with kids to school. At weekends, families, couples and singles all enjoy living so close to town, with wide varieties of accommodation and individuals living side by side.

In Stepaside, it should be noted that the aggressive development of that part of the county over the years, has not been met with adequate amenities, schools etc. This is something that is already causing problems, as large numbers of families moved to the area in the last 5-10 years, and schools, facilities etc, have not followed.

Complete the following to make up your personal maxim –
The secret of happiness in the property world is the ability to look at the bigger picture!!!

Bergins

17 Upper Baggot Street

Dublin 4.

Tel: + 353 1 6603587/6603933

Fax: + 353 1 6602503

Email: info@bergins.ie

Website: www.bergins.ie

Quotes of the Week

"Those new generation developers often ignored the rules of location, building quality and tenant need. They were driven by the mathematics of high volumes of floor space and achieving planning permission quickly. The product of much of their activities will remain empty and forlorn for a long time... Over the next year or so in Ireland my firm will be looking for mainly dull properties in excellent locations let at affordable rents to viable tenants and with generous car-parking." (Bill Nowlan, chartered surveyor.)

David Fitzsimons, chief executive of REI, said the decision to appoint a single agent was motivated by a lack of consistency and transparency displayed by many landlords in setting rents.