OwlsZat wrote: » Your post will either age really well or really badly. Coming back for an I told you so post before you know which is very premature. Congrats on buying your current idea of a dream house. Fingers crossed in a few years your not stuck there permanently drowning in a hopeless pool of negative equity.
brisan wrote: » As long as he is happy to live in his dream house and can comfortably afford the mortgage why would he have to worry about drowning in a pool of negative equity it will only affect him if he decides to sell his dream house. Without being vulgar he can now have noisy sex all over the house instead of silent sex in his parents boxroom
Cyrus wrote: » Negative equity is really only an issue if you need to sell , negative equity in and of itself is a moment in time and doesn’t necessarily impact you if the property suits your needs and you can afford the repayments. Mortgage rates are low now anyway so switching isn’t as much of a concern and with most buyers getting 80 percent mortgages the drops would need to be very big .
brisan wrote: » As I said .negative equity only comes into play if he decides to sell his dream house Who sells their dream home ????
TheSheriff wrote: » This wins the most miserable post on this entire thread.
Pelezico wrote: » I have always wondered what a dream home looks like.
Pelezico wrote: » You think? Only time will tell. All will be revealed in twelve months. Reminds me of the Lawson boom. Some people are feverishly trying to buy a house before credit is stopped. In 1988, a well flagged change in mortgage interest relief resulted in a massive temporary boom. Those who bought after that date did not qualify for the interest relief. Interest rates were very high so the relief mattered. Unfortunately prices collapsed after the change in relief date so the buyers did not benefit. That is when the phrase negative equity was born.
Cyrus wrote: » You don’t have a dream home ?
Pelezico wrote: » I have a place where we brought up our children. I would hate to refer to it as a dream home. I own my house. My house does not own me.
cubatahavana wrote: » Probably the smart ones in 1988 are still waiting. Prices will drop even further now
awec wrote: » Bank of Ireland share prices have been garbage since the last crash. Even when property values were exploding their share price was rubbish and heading downward. AIB same story. The BOI share price, and Irish bank shares in general, are a terrible barometer for the state of the economy.
Smouse156 wrote: » They mightn’t be the best proxy for the state of the economy overall but they are a useful proxy for the property market (residential & commercial). The reality is the market is usually right and has the best information and is a far better indicator than the vested interests on boards.ie. The best proxies for the residential market are the banks & home builders. The only relevant points to compare is Pre-Covid (Dec/Jan) & now! The banks share prices have collapsed and the home builders share price is down significantly. As markets are forward looking, at this point in time the fact that all are down significantly is an expectation of falling property prices and rising defaults/bad loans. This is especially true given the market bounce since Covid and all the QE money inflating stock prices. Aka, if they’re down in this environment it’s quite bad! While this is the current situation, this can all change over time as further information is digested. However, right now that’s the outlook!
awec wrote: » How? When the property market was booming, their shares were still garbage. When the property market is not booming, their shares are garbage. There is a point to be made with regards the share prices of the developers, but the banks is not an indicator.
Pelezico wrote: » The banks are a very good indicator for the state of the markets in which they are lending. Their share prices have collapsed this year. They lend primarily in property.
awec wrote: » How? When the property market was booming, their shares were still garbage. When the property market is not booming, their shares are garbage. There is a point to be made with regards the share prices of the developers, but the banks is not an indicator. When the big crash happened they were poor. Then when things improved, they were still poor. When things started booming, they remained poor. Pre-Covid, they were poor. Right now, they are poor. What do you think this indicates?
Pelezico wrote: » A dream home...is a modern construct, invented by the aspirational journalists who ply their trade in rags like the Irish Times and similar newspapers. It is a lie...and its intention is to encourage young couples to borrow more than is prudent and subject themselves to huge chunks of debt. Dream home...my ass.
Cyrus wrote: » I’m sorry for your outlook, the place where you spend most of your time should be a place that makes you happy . What newspaper do you read ?
Cyrus wrote: » Negative equity is really only an issue if you need to sell , negative equity in and of itself is a moment in time and doesn’t necessarily impact you if the property suits your needs and you can afford the repayments.
schmittel wrote: » I seem to recall lots of this sort of comment back in 07 when people started to say things might be getting a bit frothy. Sure, value of your house doesn't matter unless you need to sell etc. Fast forward a few years and we were bombarded with tales of woe, people living with the hell of negative equity, trapped, lives on hold etc etc. We seem to have come full circle - negative equity doesn’t necessarily impact you etc etc. I kind of agree with you about the idea of negative equity in theory. I wish I had as much faith as you do that it wont become a big deal in practice.
Cyrus wrote: » It’ll certainly be less of an issue now anyway, LTV ratios are much better and people are skipping the one bedroom apt situation. You are only trapped if you need to sell, if the property suits and you can afford it you don’t need to.
Pelezico wrote: » Ten percent of mortgages not being serviced. I say that sounds like trouble brewing.
shatners bassoon wrote: » Can people stop pedalling this nonsense about it taking 10-15 years to repossess a property? It happens but it's by no means the norm. The system is dysfunctional and rates are comparatively low but repossessions happen. A reluctance to take someone's family home off them is not an inherently bad thing either. Sit through a County Registrar's repossession list and tell me how many borrowers you think are getting off lightly.
PropQueries wrote: » When the media start reporting on the September figures in the Property Price Index, what month would people think it most accurately reflects when the majority of homes included in the data actually went sale agreed?
