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Tricked by Brian Lenihan into buying a house :O

245

Comments

  • #32
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


  • #33
    hmmm
    Registered Users, Registered Users 2 Posts: 11,192 ✭✭✭✭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.


  • #34
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


  • #35
    whiteonion
    Closed Accounts Posts: 837 ✭✭✭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.


  • #36
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


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  • #37
    bobblepuzzle
    Closed Accounts Posts: 1,256 ✭✭✭bobblepuzzle


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


  • #38
    macquarie
    Closed Accounts Posts: 164 ✭✭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.


  • #39
    Kersh
    Registered Users, Registered Users 2 Posts: 2,891 ✭✭✭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.


  • #40
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


  • #41
    MardiB
    Registered Users, Registered Users 2 Posts: 249 ✭✭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


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  • #42
    cochineal
    Closed Accounts Posts: 72 ✭✭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.


  • #43
    Kersh
    Registered Users, Registered Users 2 Posts: 2,891 ✭✭✭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.


  • #44
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


  • #45
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


  • #46
    Kersh
    Registered Users, Registered Users 2 Posts: 2,891 ✭✭✭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.


  • #47
    [Deleted User]
    Posts: 18,046 ✭✭✭✭ [Deleted User]


    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.


  • #48
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


  • #49
    Br4tPr1nc3
    Registered Users, Registered Users 2 Posts: 1,381 ✭✭✭Br4tPr1nc3


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

    why does he wana leave now just because of it?


  • #50
    Bruthal
    Closed Accounts Posts: 13,370 ✭✭✭✭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.


  • #51
    Firetrap
    Closed Accounts Posts: 4,441 ✭✭✭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.


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  • #52
    tommyboy2222
    Closed Accounts Posts: 914 ✭✭✭tommyboy2222


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

    It can also affect you if you want to switch lenders.


  • #53
    upandcumming
    Registered Users, Registered Users 2 Posts: 2,718 ✭✭✭upandcumming


    Same old shite on here... Lenihan must have tricked him into buying a house.


  • #54
    Amhran Nua
    Closed Accounts Posts: 4,124 ✭✭✭Amhran Nua


    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
    One can only hope that some young couple hauls Frank Fahey into court over his annual announcements that "it's a great time to buy", and recoups their negative equity that way.


  • #55
    CDfm
    Closed Accounts Posts: 20,649 ✭✭✭✭CDfm


    JONJO THE MISER wrote: »
    And his a teacher no less, if this is who is teaching our kids no wonder there gone haywire.

    Yes Grasshopper , and the Sunday Tribune said
    'There are more teachers in cabinet making vital economic decisions than in any Irish cabinet before...' Six of the ministers were teachers before they entered full-time public life and three of them were either solicitors or barristers.

    Of the five different cabinet groupings analysed, the Sunday Tribune has found there are more teachers in the current cabinet table making some of the most important economic decisions in the state's history than there has been in any of the other cabinets analysed.

    http://www.tribune.ie/article/2010/oct/31/there-are-more-teachers-in-cabinet-making-vital-ec/


    And does he blame fellow teachers for his predicament, or did he call for them to be stripped of their teacher organisation memberships.

    It could happen again.

    Enda is a Teacher.


  • #56
    CDfm
    Closed Accounts Posts: 20,649 ✭✭✭✭CDfm


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

    In the US you dont get negative equity because if the bank lends it can only recoup to the house. If you hand back the keys -it is then the banks problem.


  • #57
    parc
    Registered Users, Registered Users 2 Posts: 797 ✭✭✭parc


    Insane the amount of house that sprung up that cannot be sold now.

    But that dude should have researched it a bit better maybe.


  • #58
    Nothingbetter2d
    Closed Accounts Posts: 4,037 ✭✭✭Nothingbetter2d


    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

    anyone stupid enough to take a politician at his/her word deserves to be in debt


  • #59
    nisior
    Registered Users, Registered Users 2 Posts: 121 ✭✭nisior


    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
    This was the only bit of Frontline I watched. My Dad and I looked at eachother and laughed. I feel bad for the lad but he's such a fool. He didn't NEED to buy a house. I'm young and even I knew in 2009 that what Brian Lenihan said was bull. He said 'We've turned the corner' so often we ended up back where we began.


  • #60
    Mister men
    Closed Accounts Posts: 2,487 ✭✭✭Mister men


    Nothingbetter2d wrote: »
    anyone stupid enough to take a politician at his/her word deserves to be in debt
    Agreed. I mean how many warning do people need ffs. Only a few days ago i heard some guy on RTE radio waffling on about the "incredible value in the market today" and the presenter failed to even pull him up on that comment. Until the average price of a 3 bed semi falls below 175,000 in the greater Dublin area this economy is going nowhere.


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  • #61
    [Deleted User]
    Posts: 23,497 ✭✭✭✭ [Deleted User]


    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

    Apologies to disagree but I would be amazed if you could sell that house now for what you paid for it, unless you can it is now worth less :)


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