negative equity - share your personal experiences

seamus

I don't quite buy the €900k story. He possibly told his mates it was worth €900k when he bought it, but now he feels like too much of an idiot to admit it.

I also doubt he was "around the end" of his apprenticeship, probably a couple of years out of it. It was all madness though. Young lads would finish an apprenticeship and spend a few months subcontracting on various sites. Then they'd get friendly with a few contacts, think "I could do this subcontracting lark" and set themselves up as a business, farming out work to younger guys and apprentices. Some of the bigger sites would have multiple layers of subcontractors, each farming out the work to other people and taking a massive cut for themselves.

This how guys of 22/23 were "running" a business and showing the bank that they were pulling in €100k+ per year. The banks of course, just throwing money at everyone would see a young guy pulling in stupid profits and happily advance them a €700k 100% mortgage.

Yes, my property is worth significantly less than my mortgage and yes I will need to move to a bigger property soon. But I don't whinge about it. I got myself into this and I'll get myself out of it.

ad83

pmcmahon wrote: »

A carpenter on 90k a year eh...

Sorry i corrected that he was an electrician if it makes any difference . Was running his own business at the time and was obvioulsy able to convince the bank he was earning. Though not sure how much convincing was required at the time.

cletus van damme

pmcmahon wrote: »

"rent is dead money"

Ha,tell that to my savings account.

my mortgage is similar to the rent I'd pay on my 3 bed semi detached.

So unless you're hosue sharing or staying with your folks - your bank account will be somewhat the same.

I thjnk you are not comparing like with like so the sake of getting cheap slap on the back.

I'm not in negative equity , but I must say I find the smugness of non-boom house buyer quite sickening.
Some people (here and in other threads) actually seem to be gloating that others are in the sh1t.

Why?? cos they were arrogant during the boom? fair enough they annoyed you , but you really think seeing them depressed and in some cases on the verge of suicide is worth your petty little victory?

ad83

seamus wrote: »

I don't quite buy the €900k story. He possibly told his mates it was worth €900k when he bought it, but now he feels like too much of an idiot to admit it.

I also doubt he was "around the end" of his apprenticeship, probably a couple of years out of it. It was all madness though. Young lads would finish an apprenticeship and spend a few months subcontracting on various sites. Then they'd get friendly with a few contacts, think "I could do this subcontracting lark" and set themselves up as a business, farming out work to younger guys and apprentices. Some of the bigger sites would have multiple layers of subcontractors, each farming out the work to other people and taking a massive cut for themselves.

This how guys of 22/23 were "running" a business and showing the bank that they were pulling in €100k+ per year. The banks of course, just throwing money at everyone would see a young guy pulling in stupid profits and happily advance them a €700k 100% mortgage.

Yes, my property is worth significantly less than my mortgage and yes I will need to move to a bigger property soon. But I don't whinge about it. I got myself into this and I'll get myself out of it.

Fair play to you. I respect that attitude.

You are right about the madness. He had so much work on he was paying a mate of ours 200 euro to come in and help him for a few (3/4)hours cleaning up just so he could get onto another job

House was a little more than 900k. Checked the property price register

MadYaker

How the hell could a guy like that even get a 900k mortgage? What could he put up as collateral?? I'm too young to have bought property, and to be honest the idea is really not appealing at all considering whats happened over the last 10 years. Maybe I'll just rent forever. My parents bought their current house in 1993 and paid off the mortgage long ago. They bought another house but not in Ireland and as far as I know its value has gone up/stayed the same.

Mr Benevolent

seamus wrote: »

Yes, my property is worth significantly less than my mortgage and yes I will need to move to a bigger property soon..

Ah Seamus, not you too! Now all we need is for Wibbs to be in negative equity and we're fooked.

Then again, Wibbs probably lives with his parents

All I can say is that I was lucky in an odd way. I got into a fair amount of debt due to loans, credit cards etc, and that put me off buying a place of my own. Now I rent with my girlfriend and I'm happy with that. Being in debt has made me doubly nervous about being 200k in debt with nothing to show for it except a habitable box to sooth the status quo.

ad83

MadYaker wrote: »

How the hell could a guy like that even get a 900k mortgage? What could he put up as collateral?? I'm too young to have bought property, and to be honest the idea is really not appealing at all considering whats happened over the last 10 years. Maybe I'll just rent forever. My parents bought their current house in 1993 and paid off the mortgage long ago. They bought another house but not in Ireland and as far as I know its value has gone up/stayed the same.

The house was collateral

ScumLord

Irishcrx wrote: »

Second that - I work for an engineering company and were expanding at the minute..

Is that engineering speak for eating too many cakes?

y0pperz

ad83 wrote: »

The house was collateral

Can't see any potential issues with that

Celly Smunt

ScumLord wrote: »

Is that engineering speak for eating too many cakes?

Eating too many cakes-energy reimbursement.

lima

cletus van damme wrote: »

my mortgage is similar to the rent I'd pay on my 3 bed semi detached.

So unless you're hosue sharing or staying with your folks - your bank account will be somewhat the same.

I thjnk you are not comparing like with like so the sake of getting cheap slap on the back.

I'm not in negative equity , but I must say I find the smugness of non-boom house buyer quite sickening.
Some people (here and in other threads) actually seem to be gloating that others are in the sh1t.

Why?? cos they were arrogant during the boom? fair enough they annoyed you , but you really think seeing them depressed and in some cases on the verge of suicide is worth your petty little victory?

Haw Haw Haw.

Suckers blowing it in everyone's faces back then, where are they now? Stuck in the 'burbs with masses of debt

..and I went traveling, came back recently and missed it all :D:D

draiochtanois

This post has been deleted.

MadYaker

ad83 wrote: »

The house was collateral

You for real? Imagine that situation.

Man walks into bank,

Man: "Hello id like a 900k mortgage"

Bank: "No problem, what are you putting up as collateral?"

Man: "The house I haven't built yet"

Bank: "Great idea! sign here please"

You can't get a mortgage without proving that you have the ability to pay it off or some other type of security so the bank know they won't easily end up out of pocket.

space_man

ad83 wrote: »

I agree totally. If it goes south it will have been due to macro conditions a a result of a lehman thread. This thread is fundamentally sound and fully funded until next year

if at times this thread appears to have too few posters, then that is purely a liquidity problem and in no way can or should it be seen as a solvency issue. end of statement.

yesman2000

Pointless thread/issue really unless you were an investor back in the day trying to make a quick buck or you're looking to sell for some reason.

If you're in a house you plan to call a home for the next 10 years it's trivial what it's worth. Why even look into, research, care etc. what it's worth, it's probably only going to end badly.

Also, boom or no boom what electrician/carpenter was on 90k a year ? I definitely don't believe it, anyway.

cletus van damme

lima wrote: »

Haw Haw Haw.

Suckers blowing it in everyone's faces back then, where are they now? Stuck in the 'burbs with masses of debt

..and I went traveling, came back recently and missed it all :D:D

haw haw. indeed.

You have a point , I had a friend who was always bragging about cash , better holidays, cars, loadsa cocaine etc...
Wasnt hugely put out by him , he was generous enough, but I couldn't hold a grudge that much that i'm happy that he hasn't a pot to piss in now.
That's my point, a hard landing is kinda nice to see for people who were too big for their boots but not the extent where people are killing themselves.

however not only are you smug about missing the whole boom , you can be smug too about all the wonderful fantastic places and cultures in the world that are infinitely better than ireland.
Esp those south american hilltribes and their justice system...har har...:pac:

Padkir

yesman2000 wrote: »

Also, boom or no boom what electrician/carpenter was on 90k a year ? I definitely don't believe it, anyway.

Parents built a house in 2004/2005/2006 (roughly) and the price lads were charging for work was insane!

Fair enough a decent sized 4 bed detached 2-storey, but the cheapest plasterer Dad trusted wanted 14k for labour and we bought all the materials. Majority of the outside was scratch-coated in one day with 4 lads working and overall, between him doing a few evenings here and there, I'd say there was about 9/10 days work in it and he only had lads with him for 2/3 of those days, as he did most of the hardwall himself! The electrician wanted 8k to wire it.

So start believing that they were in this type of money and more for years...

space_man

i know of lots of Celtic tiger kids who decided to take a year or 2 out and travel, fully expecting to walk into that prize job on their return.
That turned out well then .....
Oops!

donegal_road

Padkir wrote: »

Parents built a house in 2004/2005/2006 (roughly) and the price lads were charging for work was insane!

Fair enough a decent sized 4 bed detached 2-storey, but the cheapest plasterer Dad trusted wanted 14k for labour and we bought all the materials. Majority of the outside was scratch-coated in one day with 4 lads working and overall, between him doing a few evenings here and there, I'd say there was about 9/10 days work in it and he only had lads with him for 2/3 of those days, as he did most of the hardwall himself! The electrician wanted 8k to wire it.

So start believing that they were in this type of money and more for years...

some years ago on Liveline (only thing I could pick up in the car that day) a young guy was on, 26 or 27 years old I think. He had a plastering company and wanted to expand. The bank approved a loan of €2 million so he could take on more plasters and do larger contracts. When he rang Liveline, he had moved back in with his folks after all the work had dried up.

ad83

MadYaker wrote: »

You for real? Imagine that situation.

Man walks into bank,

Man: "Hello id like a 900k mortgage"

Bank: "No problem, what are you putting up as collateral?"

Man: "The house I haven't built yet"

Bank: "Great idea! sign here please"

You can't get a mortgage without proving that you have the ability to pay it off or some other type of security so the bank know they won't easily end up out of pocket.

The house was already built. The banker who made the loan received his sales bonus straight away and the institution approved the loan under the false impression that if the guy was unable to pay the loan they would have the house which was rising in value

ad83

space_man wrote: »

if at times this thread appears to have too few posters, then that is purely a liquidity problem and in no way can or should it be seen as a solvency issue. end of statement.

Cuts to you and I sitting outside Lenihans office like bold school children/sheehy/goggin

FreshKnickers

My story, well, pull up a chair my friend and take a sip of this 40 year old cognac as I spin you my incredible tale of Negative Equity...

I don't have any.

Man I'm so boring :-( And I feel left out now.

ad83

yesman2000 wrote: »

Also, boom or no boom what electrician/carpenter was on 90k a year ? I definitely don't believe it, anyway.

People who ran their own construction businesses during the boom did not work for the average industrial wage. People who run businesses nowadays, both successful and not so successful, still don't

anncoates

House worth about 30 percent less than what I paid for although I'm nearly 10 years into the mortgage but I like the area and the house is big enough for my family with room to expand. Mortgage is not a problem to pay as things stand.

I never went on about property in the boom and I don't gloat at people's misfortune now.

Boom gloating or bust gloating is just two different sudes of being a wanker.

colm911

2007 I started working for my father (fast food business) full time earning very good wages plus cash incentives on the side (don't we all at some point). The banks literally and I mean literally offered me anything I wanted, mortgage, car loan, holiday loan. Bear in mind I was 19 at time time and how appealing that would of been to 19 year old. Thank god I preferred tinkering with cars then worrying about that sort of stuff. Never took a cent off them. Still to this day I've done what I always do, park outside the bank machine at 11.55 pm and withdraw it as soon as it hits and it's all in a very safe place where the banks can't get it. I've not one bit of sympathy to anyone who OUTLIVED their means. Note the capitals in outlived. However, I know of several young couples that did borrow and live in badly built estates, I pity the genuine people who borrowed for somewhere to live sensibly but no sympathy for couples who went and built a 5000 square foot house with a 50 grand kitchen for him her and the cat. Rant over

lima

Any annoying thing about it is that mate of mine who used to rip it up socially in the boom are all boring feckers now living in the suburbs and refuse to spend money cos their houses are worth e200k less than they bought them for. They are all so bored they are having babies. Boring feckers. I arrived back from being away and am loaded but the partys over (well for them anyway!!)

Call it gloating but now I can rub it in their faces..

josip

ad83 wrote: »

I checked the property register. House was actually a little more than 900k.

The property register only starts from January 1st 2010 and I doubt if any banks were handing out 900K mortgages to electricians then.

omahaid

lima wrote: »

They are all so bored they are having babies.

Riding is cheap!

NuckingFacker

yesman2000 wrote: »

Pointless thread/issue really unless you were an investor back in the day trying to make a quick buck or you're looking to sell for some reason.

If you're in a house you plan to call a home for the next 10 years it's trivial what it's worth. Why even look into, research, care etc. what it's worth, it's probably only going to end badly.

Also, boom or no boom what electrician/carpenter was on 90k a year ? I definitely don't believe it, anyway.

Umm, loads, actually. I have one friend who was a kitchen fitter/carpenter - he was getting 50-60k per kitchen-mad stuff, but that's what he was getting. That was for the average stuff(to him). He did a few in S.Dublin for 250k+ each. Uh huh, that's €250,000.00 each. And unless you are in that trade, you won't know that a kitchen, no matter how fancy, costs buttons really..

A new top of the range sports car was no bigge, sure one in black and one in white please, and change them in a few months, sure why not. And a huge site please, to build a new mcmansion on. A lad who worked for him, 1 year out of apprenticeship built a mansion about a mile down the road from me, as you do. I spent the boom quietly pottering away at my little business, head down, trying not to beat myself up as to where the feck I was going wrong not to have all that fancy stuff. Ah well.

Oh yeah, they're both fecked now and don't have an arse in their trousers- which is actually not somthing I derive any pleasure from at all, I'm not a begrudger and always thought "fair play" when they were flying it, I try my best to throw work their way whenever I have it to spare to give them a dig out. I'm still head down, wondering why I don't have any of that fancy stuff though..

promethius

omahaid wrote: »

Riding is cheap!

ever buy nappies?