Condescending attitudes towards people who bought houses during the boom

Fr_Fitzexactly

We all know what a property boom and bust looks like now as we've seen it happen

We know the government did all it could to keep the good times rolling and tried its best to suppress any bad news about an impending crash

We know now that if you see slapped up houses being sold for mad money and if you have the bank battering down the door so that they may please give you a loan that's a good sign you need to stay put and don't borrow anything.

Thats all grand but if you were suddenly plonked into a tiny rented overpriced apartment or a crowded parent's house in 2004/2005 without your memory of what happened next and all you can see is the prices going up and up I bet you too would be tempted to run up to Bank of Ireland and get a 110% mortgage before property will seem permanently out of your reach.

For a time around 2003 in the UK there was a trend for people to hold off with buying a house thinking there was going to be a crash, these people had great forsight but a lot of them thought the crash was going to happen that year, not in 4/5 years time. A good few of these probably gave up waiting for the crash to happen and bought a year or two after.

It doesn't help to start calling people who bought during the boom idiots and morons. It might have been apparent that a crash was going to happen but nobody knew exactly when. These people had a life and a job and they probably weren't economists. They didn't need to know loads about the economy, things were good and they were making money. We all have great ideas about how to better the economy now but that wasn't the case at the height of the boom. I'd say a lot of those berating people who bought during the boom were too busy watching pokemon to even notice what was going on but they're experts on all things economy now.

Montroseee

Is that you Alison?

My name is URL

hahaha... stupid homeowners

snubbleste

Greed.

Fair few people might see it as turnabout for getting condescending attitudes from them during the boom for not buying

The Backwards Man

There's a difference between being condescending and having no sympathy.

People made choices of free will. I don't judge them for it, but it is neither mine nor anyone else's fault they are in the situation they are in.

padd b1975

I bought during the boom.

I am very happy where I live and have no plans to move.

My monthly repayments are much lower than what it would cost me to rent a similar property.

Esoteric_

Op, I presume you also bought during the boom?

Joe Hart

padd b1975 wrote: »

I bought during the boom.

I am very happy where I live and have no plans to move.

My monthly repayments are much lower than what it would cost me to rent a similar property.

You took a huge risk and you still pissed away 200K that you didn't need to.

The difference in someone buying in 2006 for 400K and in 2012 for 200K is about 400K in mortgage repayments. Rental payments for those 6 years might amount to 80K. A person renting is far better placed to take job opportunties in Ireland and abroad.

anncoates

You should know by now that in AH the intensity of critical opinion is always directly proportional to the lack of experience of the actual situation.

mfceiling

Joe Hart wrote: »

You took a huge risk and you still pissed away 200K that you didn't need to.

The difference in someone buying in 2006 for 400K and in 2012 for 200K is about 400K in mortgage repayments. Rental payments for those 6 years might amount to 80K. A person renting is far better placed to take job opportunties in Ireland and abroad.

Do you know his circumstances?

Chop Chop

padd b1975 wrote: »

I bought during the boom.

I am very happy where I live and have no plans to move.

My monthly repayments are much lower than what it would cost me to rent a similar property.

Tracker mortgages are considerably easier to service than variable. A 200k variable mortgage is about €900 > €1100 per month. Mortgage repayments are pretty much the same as they were in the boom, you just pay much more interest for less money now that the tracker is gone.

It's all relative, if you can afford it, it's not a problem.

Gatling

I know a couple who bought a 550,000 3 bed during the boom,and had no problems letting us all know how much at every occasion,
Now 2013 as soon as personal insolvency we going to go give the house back and get a council house ,

Chop Chop

Gatling wrote: »

I know a couple who bought a 550,000 3 bed during the boom,and had no problems letting us all know how much at every occasion,
Now 2013 as soon as personal insolvency we going to go give the house back and get a council house ,

Did they change their accents into D4 accents? I know quite a few that did, very strange altogether.

padd b1975

Joe Hart wrote: »

You took a huge risk and you still pissed away 200K that you didn't need to.

I needed somewhere to live and decided renting was not my best option.

Negative equtity is not really something I worry about that much, it does not affect my ability to pay in any way.

However, if I had decided to go down the 'starter home' route and bought a shoe box appartment in a crap area, you could well hear me singing a different tune.

anncoates

Gatling wrote: »

I know a couple who bought a 550,000 3 bed during the boom,and had no problems letting us all know how much at every occasion,
Now 2013 as soon as personal insolvency we going to go give the house back and get a council house ,

As with all these others posts dripping with schadenfreude, I'm at a loss to see how you're any nicer than they are.

Actually, they're probably better because they learned a life lesson at least.

Madam_X

Joe Hart wrote: »

You took a huge risk and you still pissed away 200K that you didn't need to.

The difference in someone buying in 2006 for 400K and in 2012 for 200K is about 400K in mortgage repayments. Rental payments for those 6 years might amount to 80K. A person renting is far better placed to take job opportunties in Ireland and abroad.

What did he "piss away"? He has his own home now and can afford it comfortably. Win win it seems. Apart for those who aren't in his position of course.

The market fluctuates we know that, but a person can't be faulted for not waiting around indefinitely and not having a crystal ball.

padd b1975

Chop Chop wrote: »

Tracker mortgages are considerably easier to service than variable. A 200k variable mortgage is about €900 > €1100 per month. Mortgage repayments are pretty much the same as they were in the boom, you just pay much more interest for less money now that the tracker is gone.

It's all relative, if you can afford it, it's not a problem.

The main problem I see with renting is this; If you cannot pay your rent, you can find yourself homeless pretty quick.

If I start to struggle with my mortgage repayments, I have way more options available to me, rent a room, payment holidays, interest only etc etc.

Despite all the negativity about the property market, I am still of the opinion that everyone should be aiming to own their own home.

If they can afford it.

anncoates

Madam_X wrote: »

What did he "piss away"? He has his own home now and can afford it comfortably. Win win it seems. Apart for those who aren't in his position of course.

Always though if an alien asked me to sum up property cycles, I'd say:

BOOM: **** boasting about buying houses

BUST: **** boasting about not buying houses

Cookie_Monster

people knew what houses were worth and what their parents etc paid back in the day whenever, even with inflation it was easy to see how overpriced everything was, regardless of a crash coming or not.

Cookie_Monster

bluewolf wrote: »

Fair few people might see it as turnabout for getting condescending attitudes from them during the boom for not buying

"rent is dead money"

:pac:

Zulu

anncoates wrote: »

Always though if an alien asked me to sum up property cycles, I'd say:

BOOM: **** boasting about buying houses

BUST: **** boasting about not buying houses

This!

+1*(amount lost by Seany Fitz)

Chop Chop

Cookie_Monster wrote: »

"rent is dead money"

:pac:

It's probably cheaper to buy these days.

padd b1975

Madam_X wrote: »

What did he "piss away"? He has his own home now and can afford it comfortably. Win win it seems. Apart for those who aren't in his position of course.

Ask me again when the ECB lob a few % points onto their interest rate and when my mortgage interest relief has run its course.:o

Pinewoo

Gatling wrote: »

I know a couple who bought a 550,000 3 bed during the boom,and had no problems letting us all know how much at every occasion,
Now 2013 as soon as personal insolvency we going to go give the house back and get a council house ,

A council house? How horrifying !

rasper

I bought in boomy 05 and are quiet happpy , got a great tracker and was sicknto the back teeth renting.
Obviously housevhas halfed in value however we can easily it and have overpaid it.
If it was now I'd be terrified to buy , probably woulca't get a mortgage whateve interest r, be on a council housing list probably eyeing Canada, overall we re happy,
R

snubbleste

You should send Bertie a thank you card

Cookie_Monster

Chop Chop wrote: »

It's probably cheaper to buy these days.

possibly, but the ridiculous rent supplement and council rates put an artificially high floor on rents which aids that...

Chop Chop

Cookie_Monster wrote: »

possibly, but the ridiculous rent supplement and council rates put an artificially high floor on rents which aids that...

I would agree.

shopaholic01

The attitude of some home owners who bought during the boom is appalling.

''My house is now worth half what I paid for it! It's not fair - why should I have to paid x amount every month, I'll be paying for it 'til I'm 70. It's the bank's fault, they should never have given me that amount of money. I'm going to send the keys back to the lender. Why should I have to pay for it.''


I bought during the boom, didn't get a 100% mortgage (nor did my lender try to encourage me to borrow more) and never thought of my home as an investment. I don't know how I'll fare in the future - interest rates will increase and more pay cuts/extra taxes are likely. But, it's my problem and I don't expect my debt to be magically written off.

The banks are obliged to deal with lenders in arrears now and forced repossessions are surprising low. It will be interesting to see how it changes in the future.

Joe Hart

Madam_X wrote: »

What did he "piss away"? He has his own home now and can afford it comfortably. Win win it seems. Apart for those who aren't in his position of course.

The market fluctuates we know that, but a person can't be faulted for not waiting around indefinitely and not having a crystal ball.

HIs circumstances don't change the fact they paid hundreds of thousands more for something. I could go out and buy a house for 150K. If it halved in value Id be annoyed as its money wasted. Its not the end of the world though at that level.

I'm not into gloating about the four years I've spent renting really nice places in Donnybrook and Ballsbridge. Or breaking mens hearts handing over 5K for their 55K Audis that seemed such a good idea in 2007. Financial prudence will always win out.

Menas

I too bought sold and bought again during the boom. I am very happy with where I live, my tracker is cheaper then renting the same house and now that I have kids I can modify the house to make it more child friendly.
I don't imagine a landlord would allow me to build a child's playroom!

I am also lucky not to be in negative equity but that does not matter as no intention to move.

I don't think people have an attitude towards me because I bought during the boom.
But I think a lot of people made some very bad decisions. Paying over the odds for a property in cavan 'only 39 mins from dublin' and getting a mortgage that they could never afford if the smallest stress happened.
feel sorry for them but hate when people try to absolve themselves of responsibility for their bad decisions by blaming the banks.

donegal_road

for very many young people, if in the mid 2000's you didn't have a decent car and a house you were considered a failure, especially when you were in an occupation where it was easy to get mortage(s). eg. Garda

padd b1975

Joe Hart wrote: »

HIs circumstances don't change the fact they paid hundreds of thousands more for something. I could go out and buy a house for 150K. If it halved in value Id be annoyed as its money wasted. Its not the end of the world though at that level.

I'm not into gloating about the four years I've spent renting really nice places in Donnybrook and Ballsbridge. Or breaking mens hearts handing over 5K for their 55K Audis that seemed such a good idea in 2007. Financial prudence will always win out.

Thats fine, you did what you felt was best for you at the time.


Cracking bit of business on the Audi:)

shopaholic01

donegal_road wrote: »

for very many young people, if in the mid 2000's you didn't have a decent car and a house you were considered a failure, especially when you were in an occupation where it was easy to get mortage(s). eg. Garda

It was relatively easy for anyone with a steady income to get a mortgage during the boom.

Now it's easier for anyone with a permanent job.

daithi1970

What a lot of people forget is that a lot of people were trading up to meet the needs of growing families-we sold and bought in 2006 for just that purpose, and I would have sympathies for people who thought that their salaries at the time would keep them over water..hindsight is always 20/20, and I wouldnt have too much time for gloaters in this regard.

daithi

pragmatic1

Don't like being condescending, but anyone that bought a pokey little two bedroom in Dublin for half a million was a bit daft. It's not like this was the first property crash to ever happen, there have been dozens of them.

up for anything

My name is URL wrote: »

hahaha... stupid homeowners

snubbleste wrote: »

Greed.

bluewolf wrote: »

Fair few people might see it as turnabout for getting condescending attitudes from them during the boom for not buying

Stuck for words at the attitudes above.

You never know what life holds in store for you even if you are a wise virgin squirrel so it's best not to take too much pleasure in other people's trouble.

woodoo

When the people with massive mortgages take Ben Dunne's advice and head off for a year to the UK and declare bankruptcy, they will be able to come back and start renting or get social housing. All will be left is people that bought their houses and can afford them and i don't see why people could be condescending to them.

Joe Hart

Joe Hart wrote: »

HIs circumstances don't change the fact they paid hundreds of thousands more for something. I could go out and buy a house for 150K. If it halved in value Id be annoyed as its money wasted. Its not the end of the world though at that level.

I'm not into gloating about the four years I've spent renting really nice places in Donnybrook and Ballsbridge. Or breaking mens hearts handing over 5K for their 55K Audis that seemed such a good idea in 2007. Financial prudence will always win out.

Vomit. You are a great addition to boards.

Ilik Urgee

padd b1975 wrote: »

I bought during the boom.

I am very happy where I live and have no plans to move.

My monthly repayments are much lower than what it would cost me to rent a similar property.

Anyone else read this with a Hugh Dennis accent?

Duggys Housemate

Are houses without tracker mortgages any less costly these days than houses bought with tracker mortgages during the boom in terms of total repayments?

I don't see that the people who bought with trackers are in a bad position. ( I rented)

Menas

Duggys Housemate wrote: »

Are houses without tracker mortgages any less costly these days than houses bought with tracker mortgages during the boom in terms of total repayments?

I don't see that the people who bought with trackers are in a bad position. ( I rented)

That is a very good question. I am not clever enough to figure it out.

Chop Chop

Duggys Housemate wrote: »

Are houses without tracker mortgages any less costly these days than houses bought with tracker mortgages during the boom in terms of total repayments?

I don't see that the people who bought with trackers are in a bad position. ( I rented)

Variable is way more expensive, if you had a tracker you paid 1.5% above the ECB rate. Variable is about 3% above that. So it's way more costly. In some instances someone that borrowed €350k during the boom is paying the same monthly as someone that borrowed €200k today.

Duggys Housemate

That explains most of the price drop then ( not unemployment etc ). The real cost is the payments per month x number of months. In many ways the ticket price of the house is misleading.

There was one girl where I worked who had her own house/mortgage.. She was maybe 6 years older than me but we were the two younger ones in the office. She was so fekin "respected" because of it and other colleagues were saying to me that I should get one aswell. There was a definite air of superiority from anyone who had a house and especially if it was an investment.

Think a lot of people remember those attitudes and now that it's all went tits up, are quite happy to be the condescending ones.

Chop Chop

Duggys Housemate wrote: »

That explains most of the price drop then ( not unemployment etc ). The real cost is the payments per month x number of months. In many ways the ticket price of the house is misleading.

Exactly, people only care about servicing the monthly. The monthly hasn't really changed much since the crash, the average is about ~€900.

Menas

Chop Chop wrote: »

Variable is way more expensive, if you had a tracker you paid 1.5% above the ECB rate. Variable is about 3% above that. So it's way more costly. In some instances someone that borrowed €350k during the boom is paying the same monthly as someone that borrowed €200k today.

Most trackers are just 1% over the ECB rate from what I know.

padd b1975

Chop Chop wrote: »

Variable is way more expensive, if you had a tracker you paid 1.5% above the ECB rate. Variable is about 3% above that. So it's way more costly. In some instances someone that borrowed €350k during the boom is paying the same monthly as someone that borrowed €200k today.

Yes, and with a variable rate mortgage you have the added stress of worrying that the bank can increase their rates pretty much on a whim as well as keeping an eye on the ECB monthly press conference.

Three Seasons

I certainly have some sympathy for people who bought during the boom as it's a horrible situation to be in even if it was unwise to sign the contract.

I would however be condescending to those who blame others for the situation they find themselves in. When people act like children you tend to be condescending to them. One thing I can't stand is those who walk through the world without any sense of personal responsibility. They blame others that they don't have a job or that they bought a house at the wrong time.

Chop Chop

padd b1975 wrote: »

Yes, and with a variable rate mortgage you have the added stress of worrying that the bank can increase their rates pretty much on a whim as well as keeping an eye on the ECB monthly press conference.

Correct, and the bank will tell you that they need to raise the variable because they are not making money off the trackers. This is because the price they buy the money for is more expensive now than what they loaned it out for on the tracker mortgage. They don't have the ability to increase the interest on a tracker when the price of buying money from the ECB goes up, so the variable rate mortgage gets hit.

This is why they are offering people money to get off the tracker. So they "can" increase your monthly on a whim.