Developers offer money-back guarantee to beat slump

POTENTIAL buyers of 16 luxury homes in Co Dublin are being tempted by an unusual offer as house builders get increasingly worried about the housing market.

Concerned over the housing slump’s effect on sales of a development of €595,000 homes, builders Walsh Maguire and developer Ballynakelly Ltd are offering to buy back homes at the original price if the value falls below the amount the owners originally paid.

“Our guarantee addresses buyers’ worries about negative equity,” said Walsh Maguire chairman Vincent Maguire.

“The guarantee is also a measure of our belief in the product and our confidence the uncertainty in the market will correct itself over time.”

The developers and builders are offering the deal on sales of 16 five-bed homes at its Parson’s Court development, which is part of a larger estate in Newcastle, Co Dublin.

They say the money-back offer will not apply for the first 18 months from the date of sale as house prices are coming down.

“The decision to offer the cash-back guarantee reflects both companies’ confidence that in spite of an uncertain market, homes in the development will more than hold their value,” said spokesman for the developers, Jan van Embden.

He said the developer would pay the exact original purchase price and not any extra to allow for factors like inflation.

The 16 homes have 2,000sq ft of floor space each and are wired for broadband internet access.

“These homes have been completed to the highest standards of design, build and finish, in addition to which prices have been reduced since the scheme’s initial launch last September to reflect the current market place.

“They represent excellent value for money and, from an investment point of view, we are absolutely confident they will not only hold their short-term value, but accumulate in value over a longer period,” said Mr Maguire.