Tricked by Brian Lenihan into buying a house :O

bobblepuzzle

Just saw this poor guy on The Frontline who bought a house because Lenihan told us we had "turned the corner" in 2009 hahahaha :pac:, now he's screwed in negative equity and can't leave the gaf

I don't know whether to laugh or have pity

hotmail.com

Negative equity only affects you if you have to leave your house.

sdanseo

bobblepuzzle wrote: »

Just saw this poor guy on The Frontline who bought a house because Lenihan told us we had "turned the corner" in 2009 hahahaha :pac:, now he's screwed in negative equity and can't leave the gaf

I don't know whether to laugh or have pity

Well, I sniggered. The words "gullable fool" floated through my head the second he said it.

At least he's not as completely borked as someone who bought a house in 2005.

red menace

Well he was right we did turn a corner,
he just didn't mention it was for the worse

Aldebaran

We've turned so many corners that we're now back where we started.

bobblepuzzle

hotmail.com wrote: »

Negative equity only affects you if you have to leave your house.

Yeh, people must love paying a €400,000 mortgage on a house thats now worth €200,000... and faced with unemployment etc :rolleyes:

What? Oh Rly!

Reminds me of http://www.independent.ie/lifestyle/trapped-in-a-negative-equity-nightmare-after-dreams-of-city-apartment-living-turned-sour-1794601.html

Teferi

I thought this was going to be a thread about that girl who keeps whinging about her apartment.

Mister men

Serves him right same goes for anyone buying now.

melekalikimaka

a fool and his money yadda yadda

Run_to_da_hills

hotmail.com wrote: »

Negative equity only affects you if you have to leave your house.

Not necessarly, it can effect you mentally if you know that your house is only worth half what you paid for it and then knowing at that you still haven't a hope in hell of selling it. Examples would be those living in ghost estates.

JONJO THE MISER

And his a teacher no less, if this is who is teaching our kids no wonder there gone haywire.

sideswipe

Mister men wrote: »

Serves him right same goes for anyone buying now.

I'm sorry but nobody deserves this noose around their neck weather they made bad decisions or not. Not everybody is as smart as you obviously.

melekalikimaka

Mister men wrote: »

Serves him right same goes for anyone buying now.

it shows complete lack of thought imo but i wouldnt wish this on someone... hard lesson learnt

clossarock

It's not so very long ago that people were bumming and blowing, over a latte about the 'profit' that was made since buying the property, we are where we are, and yes it only applies when for sale, just like all investments it is heavily dependant on the markets

Greenmachine

One of many victims of the Fine Fail machine. Won't bother with the I told ya so's. Plenty of people I know bit the proverbial bullet despite my protests and are in a similar position.

Duckworth_Luas

If the poor chap believed Lenny every time he told us we'd turned the corner he's be a property magnate by now. In fact he'd probably have bought that tacky pile in the other thread for a lark.

bleg

Can't take responsibility for his own mistakes....

TeddyTedson

I wonder how much lower house prices will fall. I'd say at least another 2 years anyway.

MagicMarker

I saw him, what a gobshíte, and he's a teacher too! Must be a P.E teacher or something because I don't understand anyone being that stupid.

And the woman before him, buying a small house in Inchicore and now complaining that it's too small after having 2 kids. WTF did you buy a small house for if you intended on having kids you fúcking dope!!?

was alison on

tonycascarino

More fool him for actually believing a politician.

Mister men

It still astounds me that people are buying at the present prices after all we have been through.

lamai

Mister men wrote: »

Serves him right same goes for anyone buying now.

TWAT

orourkeda

What? Oh Rly! wrote: »

Reminds me of http://www.independent.ie/lifestyle/trapped-in-a-negative-equity-nightmare-after-dreams-of-city-apartment-living-turned-sour-1794601.html

I know the author is derided in these parts but that article just gets better and better.

Not the quality of the writing necessarily but it illustrates the stupidity and madness of irish people.

orourkeda

Somehow I dont feel as bad about my mistakes after hearing that other people have been infinitely more stupid than me.

Celly Smunt

Teferi wrote: »

I thought this was going to be a thread about that girl who keeps whinging about her apartment.

no,as she has outlined before it's no joke,its really serious

sdonn

sdonn wrote: »

At least he's not as completely borked as someone who bought a house in 2005.

I think 2005 wouldn't be the worse, 2007 was I think, they went looney altogether in 2006 iirc.

The woman who bought the little house in Inchicore was no doubt hoping to turn a quick profit and use the money to trade up. Jobwise she is in a pretty bad place too from the sounds of it. The teacher dude was a bit looney buying when he did, still, hindsight and all that.

Bruthal

hotmail.com wrote: »

Negative equity only affects you if you have to leave your house.

Does it? So it means nothing that they can now not sell it without having a large debt so are trapped, or if they cant continue to pay mortage they cant just sell it to clear loan, or that they could of bought it far cheaper later on than when they did.

AlmightyCushion

lamai wrote: »

TWAT

Banned.

melekalikimaka

robbie7730 wrote: »

Does it? So it means nothing that they can now not sell it without having a large debt so are trapped, or if they cant continue to pay mortage they cant just sell it to clear loan, or that they could of bought it far cheaper later on than when they did.

... still only if you sell

Bruthal

melekalikimaka wrote: »

... still only if you sell

If your house is repossesed you are still liable for the difference i would of thought. Someone in equity will be given the surplus, someone in negative will still be liable for the balance. I would not think thats the same as selling your home.

hmmm

Why is negative equity stopping him from paying his mortgage?

Who else would he like to pay his mortgage? I've got enough bills already, but thanks for the offer.

Bruthal

hmmm wrote: »

Why is negative equity stopping him from paying his mortgage?

Who else would he like to pay his mortgage? I've got enough bills already, but thanks for the offer.

Its not stopping him, but its a worse position to be in than someone in equity when the recessionary difficulties reduce his and many others capacity to cover the mortgage because if the worst happened and the house is repossesed, the owner is still not out of debt. That was my point, that its not only something that affects someone that wants to sell.

It also cant be great knowing he could of got the house now for 100k less, even of he knew the monthly payments he had from the time he bought it.

whiteonion

Believe exactly the opposite of what politicians are saying. If Bertie says that critics of economy should commit suicide, believe that the critics are correct.

If Lenihan says whe have turned a corner, believe that it's going to get worse.

If a politician says this bank bailout will be the cheapest ever, expect the worse.

If you always believe in the opposite of what a politician is saying you will get it right most of the time.

Bruthal

whiteonion wrote: »

Believe exactly the opposite of what politicians are saying. If Bertie says that critics of economy should commit suicide, believe that the critics are correct.

If Lenihan says whe have turned a corner, believe that it's going to get worse.

If a politician says this bank bailout will be the cheapest ever, expect the worse.

If you always believe in the opposite of what a politician is saying you will get it right most of the time.

That sounds well thought out, and likely right as well.

bobblepuzzle

The Universal "Social" Charge has no doubt flipped people into not affording the mortgage repayments

macquarie

Negative equity isn't only relevant when you're selling. If you bought the same house in 2007 or 2011, the difference in mortgage repayments would probably give you an extra few hundred euro per month disposable income to socialize or buy nice things.

Kersh

Yeh, people must love paying a €400,000 mortgage on a house thats now worth €200,000

Why would you pay 400k for a house thats only worth 200k????

Surely people didnt think values would keep going up? Or did they?

And to think, all along I was putting dead money into renting . .

Negative equity isn't only relevant when you're selling. If you bought the same house in 2007 or 2011, the difference in mortgage repayments would probably give you an extra few hundred euro per month disposable income to socialize or buy nice things.

People need to take responsibility for their actions. If a house was bought in 2007 for 400k and its now worth 200k then tough! They should have looked at he house and actually though how much it was worth, not how much it might be worth in a year, for a quick flip.

On the other hand, if it was bought as a family home then whats the issue . . it will be worth 500k in 25 years when its all paid off.

Bruthal

Kersh wrote: »

Why would you pay 400k for a house thats only worth 200k????

Surely people didnt think values would keep going up? Or did they?

And to think, all along I was putting dead money into renting . .

Well the banks must of thought they would keep going up anyway, they would not of given 400k mortgages if they thought the houses would drop to 200k.

The value in houses was artificial anyway, driven by the frenzy to own a house, and encouraged and facilitated by our leaders.

MardiB

OP I bought a house in 2009 for €200,000 less than it had been bought 13 months before. I'm happy with that and can afford the repayments. Don't tar everyonewith the one brush please..

Btw it hasn't gone down in value, not that I really give a ****, I Love my home an feel very lucky that I can manage my mortgage

cochineal

House prices are all over the shop - two beds in Killiney and Tallaght are being priced the same - the premium for living close to the glitterati has disappeared. There's huge discrepancy along the same road in certain areas - look at Albert Road Lower in Sandycove, 600,000 for one house on the road and 1,200,000 for something very similar a few doors down. Crazy stuff.

Kersh

Well the banks must of thought they would keep going up anyway

Free tip for all, they are BANKS, their job is to make money off you by giving loans and mortgages.

They sell a product, the consumer buys. They are in it for the money, its up to the consumer to see they are getting value for money. If no one buys cos its not value for money, the prices come down.

If its a frenzy then those that feasted must pay . . cos im sure if prices were still on the up, we would be hearing, over champagne, how great it is and how much money they made.

Bruthal

MardiB wrote: »

OP I bought a house in 2009 for €200,000 less than it had been bought 13 months before. I'm happy with that and can afford the repayments. Don't tar everyonewith the one brush please..

Btw it hasn't gone down in value, not that I really give a ****, I Love my home an feel very lucky that I can manage my mortgage

Where has the OP tar'd anyone with any brush, he said he seen a fella on frontline in negative equity. He never said everyone in ireland is this or that.

Bruthal

Kersh wrote: »

Free tip for all, they are BANKS, their job is to make money off you by giving loans and mortgages.

Maybe you should of gave free tips to the banks then. They are not doing their job too well now.

Kersh

Maybe you should of gave free tips to the banks then.

Dont need to, they have customers with 400k mortgages on 200k houses. Pigs back for them.

macquarie

macquarie wrote: »

Negative equity isn't only relevant when you're selling. If you bought the same house in 2007 or 2011, the difference in mortgage repayments would probably give you an extra few hundred euro per month disposable income to socialize or buy nice things.

Eh that determining factor is called the "price of the house".. Nothing to do with negative equity.

Bruthal

Kersh wrote: »

Dont need to, they have customers with 400k mortgages on 200k houses. Pigs back for them.

You believe that? And you reckon banks here are in great shape so?

A bank would not loan out 400k for a house if they believed at any time during the mortgage that the house would be worth 200k. A bank would far prefer to have a mortgage holder have a house worth 400k and owe 200k. Then the banks interests are secure.

By your logic it would be great for the banks if everyone in the country owes the bank more than their property`s are worth. If thats the case why did the banks not just loan house buyers double what they needed?

The reality is any repossesions will leave the banks with a shortfall. the mortgage holders are still liable, but they cant pay what they dont have if they lose their house.

Br4tPr1nc3

If he wasnt in negative would he wana leave the house?

why does he wana leave now just because of it?

Bruthal

Br4tPr1nc3 wrote: »

If he wasnt in negative would he wana leave the house?

why does he wana leave now just because of it?

He could be forced to leave it by it being repossesed, which has nothing to do with the equity. The negative equity comes into it because he now as well as losing the house also has the negative equity as an outstanding debt. So it cant be said the negative equity means nothing. Its an extra burden with consequences should he fail to keep up with repayments.

Firetrap

People bought houses for all sorts of reasons but one of them was that they needed to get their foot on the bottom rung of the housing ladder fast before it went out of their reach. Remember the halcyon days where if you didn't get yer name down for Phase 1 of Lakeside Drive or Woodland Grove, that next week Phase 2 of with identical houses would be up for sale but for €20,000 more. And of course there were all the stories of how their parents bought houses in the 80s and had approximately 80p left over after paying their giant mortgage but shur after a few years the repayments wouldn't hurt so much. It didn't matter here because wages were going just one way - up - and even if you or your other half lost your job it didn't matter because you'd pick up another one pretty handily and perhaps even earn more.