Worst Purchase During Boom Award

Boardom

I hope this hasn't been done already.

I am not looking to poke fun at anyone who bought an overpriced shoebox during the boom years but I think a thread showing how bad it got could be in order.

A former co-worker of mine bought a 3-bed semi-d in Kingswood, Tallaght in 2006 for EUR420,000 with a 100% mortgage and no interest / stamp duty relief because her boyfriend had part ownership in another property. Ouch!

Something along the lines of this one advertised on daft at EUR265,000 at the moment:
http://www.daft.ie/searchsale.daft?id=473752

Boardom

One other person I know bought one of the 70m2 2-bed apts in Rockfield, Balally in Dundrum for EUR570,000 in 2005.

Not sure of the current value but I found an example of one near there recently listed at EUR250,000 but I am sure the final sale price was lower.

http://www.myhome.ie/residential/brochure/69-the-holly-dundrum-dublin-14/120428

jobless

just before i start i dont own any property....

i think this thread is tasteless to be honest.... why do people get off on others misfortune?...

molloyjazz

Boardom wrote: »

I hope this hasn't been done already.

I am not looking to poke fun at anyone who bought an overpriced shoebox during the boom years but I think a thread showing how bad it got could be in order.

A former co-worker of mine bought a 3-bed semi-d in Kingswood, Tallaght in 2006 for EUR420,000 with a 100% mortgage and no interest / stamp duty relief because her boyfriend had part ownership in another property. Ouch!

Something along the lines of this one advertised on daft at EUR265,000 at the moment:
http://www.daft.ie/searchsale.daft?id=473752

yes a 200k price drop, but there was a load of poles living in the cheaper house, hence the drop in price id say.

basterds! Dey tuk r jerbz!

Boardom

It is a bit tasteless alright but interesting nonetheless.

Cookie_Monster

The Irish Glass site has to be the worst purchase, virtually worthless compared to what was bought for and no houses built on it

D3PO

Boardom wrote: »

It is a bit tasteless alright but interesting nonetheless.

no its just tasteless.

blah

D3PO wrote: »

no its just tasteless.

Over the years I've been spoken down to by property owning friends and estate agent advertising,
"Renting is dead money"
"You can't go wrong with property"
"I wouldn't want to be stuck living with my parents like you"

and so on.

I always felt that was in bad taste.

Kintarō Hattori

I don't see the harm in the thread really, it's interesting.

Back during the boom myself and the other half were looking at buying a house or apartment in Ireland but even then we knew the prices were rediculous, put our money away, bought a 1 bed apartment in her country and saved more money for a deposit when we do decide to buy somewhere.

D3PO

blah wrote: »

Over the years I've been spoken down to by property owning friends and estate agent advertising,
"Renting is dead money"
"You can't go wrong with property"
"I wouldn't want to be stuck living with my parents like you"

and so on.

I always felt that was in bad taste.

and 2 wrongs make a right ? Nice logic

tHE vAGGABOND

3-bed semi-d in Kingswood, Tallaght in 2006 for EUR420,000

There are big family houses in kingswood, tiny houses which are smaller than most apartments [like the one in your link above] and even bungalows..

So its not like other estates, in Lucan or wherever, where every single house is identical


[I know all this, as I was out bid on about 4 or 5 places there when I was buying, so I must have viewed half the estate! As I thought, and still think, it would be a good place to live ]

Mink

My aunt's 3 bed, 1 bath terraced house in Darty, D6, auctioned off for 1.2 million about 5 or 6 years ago! She owned the house outright as it had been in the family pre WW1. She was able to buy a massive 6 bed place out in the country & had lots left over.

Ok so she did great out of it, but I it was not exactly a bargain for the person that bought it at auction. Even my aunt couldn't believe someone would pay that much money for it. She was expecting maybe 500K at the most. Probably the pressure of the auction got to the buyer, I don't know

inforfun

jobless wrote: »

just before i start i dont own any property....

i think this thread is tasteless to be honest.... why do people get off on others misfortune?...

Tasteless and misfortune are not exactly the first words that pop up in my mind when i see this:

Boardom wrote: »

One other person I know bought one of the 70m2 2-bed apts in Rockfield, Balally in Dundrum for EUR570,000 in 2005.

Now i will not have a great laugh about people losing this kind of money but i will for sure not feel sorry for them.
They agreed to that price and signed (i presume) for the mortgage themselves.

Mink

inforfun wrote: »

Now i will not have a great laugh about people losing this kind of money but i will for sure not feel sorry for them.
They agreed to that price and signed (i presume) for the mortgage themselves.

I'm not a home owner but I do sympathise with people that got into big mortgages. There was a huge pressure to "buy now" & to them it seemed prices would only keep going up so the only solution (if you ever wanted a gaff) was to just go for it, especially if they had families or soon would.

I nearly did it myself so I can understand it & I do feel sorry for people that got into that situation. Though, granted at the end of the day you are responsible for your own decisions (& signatures).

connundrum

Whilst I will not laugh, I will shake my head in amazement.

A friend bought a 2 bed ground floor apt in Portarlington Co. Laois for €215,000 via the County Council (don't know if it was shared ownership).

Similar sized, new, 1st & 2nd floor apts in Portarlington are now asking for between €80,000 - €130,000. As for what they're actually selling for, well..

Absolute crazyness.

Jaysoose

Boardom wrote: »

It is a bit tasteless alright but interesting nonetheless.

Im glad i dont know you.

enda1

The Burlington hotel must sit somewhere near the top of this list

Ash.J.Williams

blah wrote: »

Over the years I've been spoken down to by property owning friends and estate agent advertising,
"Renting is dead money"
"You can't go wrong with property"
"I wouldn't want to be stuck living with my parents like you"

and so on.

I always felt that was in bad taste.

Plus F**ing one!!!

THe amount of s** talk i have had to put up with all through those years, people actually talking down to me over not owning a shoebox "near navan"....Disgusted me to the core. This was still happening in the latter days of the boom. People who i would have thought knew better rushing to by the last of the big priced houses, and laughing at advice from renters like myself and now they up to their necks.

I was once contracted to a well known multinational, and was in the bank one day taking out cash, when i was approached by a woman and brought into the managers office, and offered anything i wanted mortgagewise....I knew in reality i was entitled to NO mortgage and was puzzled at this, she offered me any amount litterly. I told her my salary and still she was still throwing a mortgage at me...and then said "what about the rest...?"
I was like "huh?" ...she asked about all my perks, pensions, shares, profit share...., i said "that's" it " All this chat was because i had the multinationals badge around my neck, and she knew how much they earned.....then had the cheek to try and sell me some "products"....From that day on the celtic tiger sickened me to the core.
(it was BOI by the way)

Treehouse72

blah wrote: »

Over the years I've been spoken down to by property owning friends and estate agent advertising,
"Renting is dead money"
"You can't go wrong with property"
"I wouldn't want to be stuck living with my parents like you"

and so on.

I always felt that was in bad taste.

That was my experience too.

From 2004 onwards I knew there was a massive, massive crash coming and I was sure that when it eventually did I would feel schadenfreude and a smug satisfaction that I saw it coming and remained debt-free while the masses didn't.

But the honest truth is that now the crash is here, I feel none of that. At least, an inconsolably tiny amount of it. Rather, I just feel sick at the whole disgusting spectacle. Peoples lives ruined, the creative energy of the country sucked dry by debt, 35 year/400k mortgages on 3 beds in Tallaght, the job losses, this seditious government still in power. Not even my guilty little moments of haha, told-you-so come close to compensating for the empty feeling of doom in the belly.

The ONLY people to emerge with credit from this debacle are those who spent the boom trying to warn others about what was happening. I would immodestly put myself in that ctegory - I used to have my friends rolling their eyes at me in a "oh-oh...he's off again" way when I warned them - along with people like Morgan Kelly, DMcW et al. I guess most of you know at least one person like this - there weren't many, but still a significant minority. Everyone else - hacks, politicans, regulators, economic commentators, bankers, the general public - they emerge with zero credit. In fact, they emerge with minus credit. They should be ashamed of themselves and many deserve to learn a harsh lesson for their arrogance, hubris and stupidity.

gurramok

jobless wrote:

why do people get off on others misfortune?

How is it misfortune? They bought at a price that was value to them at the peak.

What i'd call misfortune is if they lost their job since then and with threatened repossession. Thats a big difference to the ones who still have a roof over their heads.

Regarding worst purchase, one comes to mind in 2006 when I was driving up to Christchurch. Someone had put a big red sign hanging the outside of an apt just ahead of stopped traffic at the lights saying "Get yourself this bargain 1bed apt for €300,000".

That made me laugh alright.

Funkfield

+1 to the last three posts

enda1

Sooo back on topic!

1 bed apartment in Christchurch for 300k is pretty insane alright!

Can anyone beat that?

Highly Salami

Bernard McNamara's purchase of the Irish Glass site at Ringsend, the crash had even already started then.
Also, Sean Dunne purchase of Jury's and Berkely Court.

lynchie

Highly Salami wrote: »

Bernard McNamara's purchase of the Irish Glass site at Ringsend, the crash had even already started then.
Also, Sean Dunne purchase of Jury's and Berkely Court.

Or the developer who owns that land in Athlone that he paid €30m thats lost 98% of its value and is now worth €600K!!

Jaysoose

Boardom wrote: »

It is a bit tasteless alright but interesting nonetheless.

Very tasteless to start a thread about the worst purchases of the boom simply to sneer about people you know that paid silly money for properties when there are way worse purchases being posted about like the irish glass site, you could even have picked any of the NAMA candidates......Not interesting at all...quite pathetic

enda1

It is interesting.

To compare commercial purchases to personal is not quite fair though.
It is more acceptable and reasonable to take large risks in the commercial sector.

In the personal sector, there is no protection from bankruptcy and people put all their eggs in one basket - they didn't hedge their risk accross investment options or even within the property sector, therefore large risk taking was insane and it should be pointed out for what it was!

billybigunz

Jaysoose wrote: »

Very tasteless to start a thread about the worst purchases of the boom simply to sneer about people you know that paid silly money for properties when there are way worse purchases being posted about like the irish glass site, you could even have picked any of the NAMA candidates......Not interesting at all...quite pathetic

I've no shame for indulging in a bit of glee. The average renter was essentially bullied throughout the last decade by property owning family, friends and insitutions. Made to feel like less of an adult because they wouldn't just take some drugs and join the party.


That house listed in the first post: That might have been an ideal purchase for some family, from the area and that suited the house. But they couldn't buy it because some idea had no problem paying 3 times a fair price for it. These people aren't innocent. Every time my pay is cut they are indirectly to blame.

Jaysoose

billybigunz wrote: »

I've no shame for indulging in a bit of glee. The average renter was essentially bullied throughout the last decade by property owning family, friends and insitutions. Made to feel like less of an adult because they wouldn't just take some drugs and join the party.


That house listed in the first post: That might have been an ideal purchase for some family, from the area and that suited the house. But they couldn't buy it because some idea had no problem paying 3 times a fair price for it. These people aren't innocent. Every time my pay is cut they are indirectly to blame.

LOL @ Above

D3PO

This thread is tasteless and Im really surprised the Mods havent locked it.

Seems to be a lot of non homeowners with chips on their shoulders about how they were "treated" by family and friends for not buying. Rather than pour scorn on other house purchasers you need to ask yourself why so called family and friends humiliated you back during the boom.

I see no difference in this thread than if I set one up asking what pensioner got screwed the most in terms of drops in banks share value. Its tasteless, great for people that didnt buy but dont rub other people sface in it.

Full disclosure. Yes I bought during the boom (2005) yes you could call it financially a bad decision as Im in a small bit of negative equity now (didnt get a stupid 100% mortgage so its not to bad) You all more than welcome to make fun of my financial decision. Im happy I can afford my mortgage, I bought in the area I want to live in, and have plenty of savings to get out of negative equity if I so wish, but clearly the consensus to renters is that I have the financial accumen of a rock.

Doesnt bother me. The shares I bought in AIB for 42 cent and sold at €3.20 whilst making the most of the bank issues we currently have says otherwise.

kippy

Not everyone who bought is screwed either in fairness. Even if on paper the price of the property has fallen........ so long as they are still in a job and are planning on living in that house long term, I doubt they are too worried to be honest.
Despite the price of houses now, try get a mortgage of a bank for it, a damn sight harder in todays market.
Yeah sure, some people got it wrong. Personally, I'd never be able to get a mortage in the climate we are in right now however I was able to get on in the climate of the boom, bought a house in an area where I intend living long term.
Do I care that its gone down 50K on paper? Do I fcuk. Would I care if it when up 50K on paper, would I fcuk.


I've never really "looked down" on those who didnt buy either, I have plenty friends who didnt, it didnt suit them to buy.

gurramok

D3PO wrote: »

This thread is tasteless and Im really surprised the Mods havent locked it.

Seems to be a lot of non homeowners with chips on their shoulders about how they were "treated" by family and friends for not buying. Rather than pour scorn on other house purchasers you need to ask yourself why so called family and friends humiliated you back during the boom.

I see no difference in this thread than if I set one up asking what pensioner got screwed the most in terms of drops in banks share value. Its tasteless, great for people that didnt buy but dont rub other people sface in it.

Full disclosure. Yes I bought during the boom (2005) yes you could call it financially a bad decision as Im in a small bit of negative equity now (didnt get a stupid 100% mortgage so its not to bad) You all more than welcome to make fun of my financial decision. Im happy I can afford my mortgage, I bought in the area I want to live in, and have plenty of savings to get out of negative equity if I so wish, but clearly the consensus to renters is that I have the financial accumen of a rock.

Doesnt bother me. The shares I bought in AIB for 42 cent and sold at €3.20 whilst making the most of the bank issues we currently have says otherwise.

Think most people are laughing at the silly prices paid by purchasers rather than laughing at any 'misfortune' they had afterwards.

We all know people personally who paid silly prices for standard apts/houses, its that widespread.

In this context, I did laugh at people(who I did not know) queueing up to purchase apts at 300k+ in '05/'06 in non-posh areas taking on 35yr mortgages as deep down I thought they were indeed lunatics.

If only they knew the concept of the value for money, they would of been spared alot of pain.