negative equity

drdeadlift · 10-12-2012 03:14PM #1

Asses the total amount of negative equity on homes in Ireland.
Once total negative equity has been assessed, value (unsold houses/ghost estates) to the same value of negative equity on house property's.
Sell unused houses at the price of total negative equity.
Would this help spread the burden of massive debt over a larger number of people aswell as keeping house prices realistic

Shenshen · 10-12-2012 03:16PM

drdeadlift wrote: »

Asses the total amount of negative equity on homes in Ireland.
Once total negative equity has been assessed, value (unsold houses/ghost estates) to the same value of negative equity on house property's.
Sell unused houses at the price of total negative equity.
Would this help spread the burden of massive debt over a larger number of people aswell as keeping house prices realistic

Who would you sell those houses to?

Anyone · 10-12-2012 03:17PM

drdeadlift wrote: »

Asses the total amount of negative equity on homes in Ireland.
Once total negative equity has been assessed, value (unsold houses/ghost estates) to the same value of negative equity on house property's.
Sell unused houses at the price of total negative equity.
Would this help spread the burden of massive debt over a larger number of people aswell as keeping house prices realistic

Who is going to buy half completed houses with no amenities stuck in the arse end of nowhere?

saiint · 10-12-2012 03:18PM

give them to the homeless people

although it would probably end up as a big drug den or a rave party
im fine with either one

The Aussie · 10-12-2012 03:19PM

I just brought a few months ago, I don't want to share anyone's burden, I could have brought in 2005, but I'm not an idiot, I will keep my debt people who got caught up in the great con can have theirs*

* not including banks debt because we all share their burden due to weak governance by morons.

JustAddWater · 10-12-2012 03:20PM

drdeadlift wrote: »

Asses the total amount of negative equity on homes in Ireland.
Once total negative equity has been assessed, value (unsold houses/ghost estates) to the same value of negative equity on house property's.
Sell unused houses at the price of total negative equity.
Would this help spread the burden of massive debt over a larger number of people aswell as keeping house prices realistic

And if the begative equity is large, then the houses are sold for a high price, which is actually creating negative equity in itself

Plus, who would buy the house now?

LiamoSail · 10-12-2012 03:21PM

saiint wrote: »

give them to the homeless people
although it would probably end up as a big drug den or a rave party
im fine with either one

I'm thinking Hamsterdam. Worked in Baltimore

Fr_Dougal · 10-12-2012 03:23PM

Crippled with negative equity on your home?

Easy, don't sell it.

Negative equity only affects homeowners if they plan on selling up and the vast majority have no intention of doing so; but love to bitch and moan about this negative equity that really has no effect on their daily lives.

Hippies! · 10-12-2012 03:23PM

I don't get this, surely negative equity if far greater than the value of these unsold crappy boxes

ThisRegard · 10-12-2012 03:24PM

Negative equity is only a problem for people who can't manage a mortgage and can't sell their property to pay off the mortgage. And of course those who bought apartments, now have families and want to get into something bigger. But I think the problem is being exagerated to an extent.

If you bought a house in the boom, was fully aware of how much you were paying and what the mortgage repayments were going to be, negative equity is not an issue because you were going to be paying the mortgage anyway.

edit: The shame of being beaten to it by Fr Dougal.

drdeadlift · 10-12-2012 03:33PM

Shenshen wrote: »

Who would you sell those houses to?

A person that wishes to buy them perhaps.

Shenshen · 10-12-2012 03:41PM

drdeadlift wrote: »

A person that wishes to buy them perhaps.

And where would these hypothetical people be getting the funds to purchase said properties?

Very few banks are lending money, and those that do will require you to jump through hoops, paint yourself purple and dance in front of a comittee before they will even acknowledge they received your mortgage application.

The reason people aren't buying is because they can't.

The Aussie · 10-12-2012 03:53PM

Shenshen wrote: »

And where would these hypothetical people be getting the funds to purchase said properties?

I did, without the body painting, although there were plenty of hoops and some of them flaming, but at more than 50% less than what it would have cost 5 years ago, but who would pay double for a house, fools and their money, now some fools want to share their burden.

youreadthat · 10-12-2012 04:07PM

It's crazy to think that some people will have to actually use their house like a home. :eek:

Shenshen · 10-12-2012 04:12PM

The Aussie wrote: »

I did, without the body painting, although there were plenty of hoops and some of them flaming, but at more than 50% less than what it would have cost 5 years ago, but who would pay double for a house, fools and their money, now some fools want to share their burden.

Heh, we did too, so I know what kind of a song and dance banks make at the moment when faced with the horrible prospect of a couple in their early 30s, both working full-time, secure jobs, with a deposit and no negative credit history whatsoever wanting to get a mortgage off them. You'd think we asked them if we could eat their grannies!

Robbo · 10-12-2012 04:13PM

Where's my Nama, Joe?

joydivision · 10-12-2012 04:14PM

I like negative equity in a way . Im better off than half the country because when everyone was going to brunch and bragging about spotlights in their kitchen presses , I wasnt arsed with all that keeping up with the joneses and chose to drink my money and pay dead rent money .
I know its terrible to get satisfaction from it but the immature part of me does . You all now have to work twice as hard as me now to keep up with my lifestyle . Which is still pretty quiet .

Dodge · 10-12-2012 04:17PM

joydivision wrote: »

I like negative equity in a way . Im better off than half the country because when everyone was going to brunch and bragging about spotlights in their kitchen presses , I wasnt arsed with all that keeping up with the joneses and chose to drink my money and pay dead rent money .
I know its terrible to get satisfaction from it but the immature part of me does . You all now have to work twice as hard as me now to keep up with my lifestyle . Which is still pretty quiet .

Negative equity won't effect their lifestyle

Most people are paying less on their mortgage now than 4/5 years ago so purely from that POV, they're better off

Glad you're happy renting though

Czarcasm · 10-12-2012 04:21PM

youreadthat wrote: »

It's crazy to think that some people will have to actually use their house like a home. :eek:

Decades ago, a house WAS a home, but during the boom times a couple in their early 20's, on minimum wage, were able to falsify their mortgage applications to take out a 35 year 100% mortgage on a €268,000 shoebox apartment.

It was never doomed to fail surely? Not half!

joydivision · 10-12-2012 04:27PM

Dodge wrote: »

Negative equity won't effect their lifestyle

Most people are paying less on their mortgage now than 4/5 years ago so purely from that POV, they're better off

Glad you're happy renting though

Ah yeah but in a few months Ill be able to buy a house for 100 000 . You getting me now .
I pay 100 000 now sty with me thats euros .
They paid 400 000 . That as well is euros . They got an extra loan for a bmw 4x4 .
I could pick one of them up for a fraction of the price .
They paid thousands for decking . You can get carpenters to come round your house now and work for day rate .
Its terrible I know but alot of hobnobbers were looking down on me calling me a waster for paying dead rent money and driving an old 306 .

ronjo · 10-12-2012 04:32PM

The Aussie wrote: »

I just brought a few months ago, I don't want to share anyone's burden, I could have brought in 2005, but I'm not an idiot, I will keep my debt people who got caught up in the great con can have theirs*

What did you bring?? I assume it was intentional since you are not an idiot....

:pac:

Frank Black · 10-12-2012 04:49PM

ronjo wrote: »

What did you bring?? I assume it was intentional since you are not an idiot.... :pac:

He didn't bring anything surely?
He could have though - back on good old '05.
People were always bringing things back then.
Idiots!

The Aussie · 10-12-2012 04:56PM

ronjo wrote: »

What did you bring??

Money, do you remember what it looks like:D:eek:
It helps to have it and not owe it when you go to see a bank

But seems I'm not an idiot who payed twice as much as what it is now worth it's a moot point :pac:

UCDVet · 10-12-2012 05:35PM

If you are buying anything on credit, you should expect negative equity. House, car, milk, whatever. That's kind of how buying things work.

I'm sorry so many people were lead to believe houses were magical money making machines.

donegal_road · 10-12-2012 06:01PM

Czarcasm wrote: »

Decades ago, a house WAS a home, but during the boom times a couple in their early 20's, on minimum wage, were able to falsify their mortgage applications to take out a 35 year 100% mortgage on a €268,000 shoebox apartment.

It was never doomed to fail surely? Not half!

and unless they paid cash for the appartment on the day they bought it, that €268,000 will eventually amount to a repayment of €424,380 (taking that the interest rate stays at 4% for 35 years)....
considering how much the value of property has dropped since the peak, I dont blame people for doing a runner to Australia to be honest

.

johnwest288 · 10-12-2012 06:04PM

Just a thought. what about we do up some of these ghost housing estates and allow tourists to stay in them rent free :cool::rolleyes:
This way the tourists spend their cash in the local economy !;)

joydivision · 10-12-2012 06:06PM

johnwest288 wrote: »

Just a thought. what about we do up some of these ghost housing estates and allow tourists to stay in them rent free :cool::rolleyes:
This way the tourists spend their cash in the local economy !;)

And all the hotels close

donegal_road · 10-12-2012 06:10PM

johnwest288 wrote: »

Just a thought. what about we do up some of these ghost housing estates and allow tourists to stay in them rent free :cool::rolleyes:
This way the tourists spend their cash in the local economy !;)

one of the best plans Ive heard in a long time, I might borrow this for my Facebook status

donegal_road · 10-12-2012 06:14PM

joydivision wrote: »

And all the hotels close

many hotels have been taken over by the banks. Any money taken in by some of these hotels will go straight into the black hole. Many of the remaining solvent hotels are crippled paying back the banks for large loans taken out to extend the hotel... so long as hotels are shoving most of their takings into repaying the banks, we will see none of the cash spent in the local ecconomy

joydivision · 10-12-2012 06:18PM

So instead of the tourists paying the debt they should just not pay it and get free rent .
Sure why dont we let all the hotel staff go and let everyone keep their prsi as well .

Czarcasm · 10-12-2012 07:36PM

donegal_road wrote: »

and unless they paid cash for the appartment on the day they bought it, that €268,000 will eventually amount to a repayment of €424,380 (taking that the interest rate stays at 4% for 35 years)....
considering how much the value of property has dropped since the peak, I dont blame people for doing a runner to Australia to be honest

.

Tbh I don't know where they are now as they were made redundant nearly four years ago, about two years after they bought the apartment.

But I do know the apartments didn't even fetch the reserve price of €37,000 at one of them stress auctions a couple of months back.

negative equity

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