How Times have changed ! (housing)

four18

Hard to believe this was only 5/6 years ago
http://www.leinsterleader.ie/news/local/couples_camp_out_in_hope_of_buying_their_first_home_1_1923383

happo

Crazy times.

http://www.daft.ie/searchsale.daft?id=556663

kevin101

They would have been approx €350k in 2006 I presume.

four18

Units starting at 250 k so most probably 275 up. Now 199k on Daft. The other piece of the article that jumps out is " All the parents are camping out as most young people are working," said Mr Fitzpatrick.

Heady Days allright !!

Rabidlamb

four18 wrote: »

Units starting at 250 k so most probably 275 up. Now 199k on Daft. The other piece of the article that jumps out is " All the parents are camping out as most young people are working," said Mr Fitzpatrick.

Heady Days allright !!

That's the 3 bed duplex that up for €199k, wouldn't get the smell of it.
There's 2 bed apartments in Millbank & Willow Close asking for €150k.
http://www.daft.ie/searchsale.daft?id=476828
http://www.daft.ie/searchsale.daft?id=585316

I'm sure the 50% off 2007 asking applies here too.

Dades

OVER 150 people queued for two days and nights for the possibility of a new house or apartment at Hunters Wood, Sallins – but the majority were left empty-handed

Weren't they the lucky ones.

Treehouse72

It still astonishes me that people couldn't see it was a bubble. I will never, ever get my head around how people thought prices would just keep on going up forever. What kind of madness is that?

who_ru

what a quote from that piece.

Jean said: "The builder even laid on breakfast. This is a way for people to get to know their neighbours even before they move in."

my god sweetheart that was one expensive breakfast, at least 100,000k for a full irish.

ShadowHearth

Hmmm I will be honest. I was newer thinking alot about properties back then. All I wanted was a home, but when prices went for idiotic prices we knew we can't afford it. Even if we would have gotten bare standard ****box for 350k it would be way worse then just renting till the end of your life! Living all yourlife like cockroach just to buy it, then just die...

I am so happy we could not afford it and we knew where we stand, we just gave up on our dream to own a house. We knew that making such a deal is like selling your soul to the devil. I have to admit, we newer thought about bubble.

I know prices are still droping, but we decided to buy a house and took a mortgage now. Borrowing 70k is not as bad as borrowing 320k. Some people drive cars more expencive tuen house we buying .

Btw I talked to fella who is in really big ****s with house he bought in boom. He took 100% mortgage! I newer even knew you could even do that!

who_ru

ShadowHearth wrote: »

.

Btw I talked to fella who is in really big ****s with house he bought in boom. He took 100% mortgage! I newer even knew you could even do that!

a lot of people did that ShadowHearth and now in many cases they have lost their jobs, cannot even make interest on the loan repayments, never mind the actual amount of money borrowed.

mathie

Dades wrote: »

Weren't they the lucky ones.

Probably not as I'd say they managed to buy after that at a higher price!

I remember 2006 in Holywell in Swords viewing the showrooms.
When we asked about prices the woman said 'Oh the prices on that sheet are today only and they're sold. The new price list will be out on monday.'
Sure enough it was. With 10% or so added across the board.
Crazy times.

mikemac

What happened?

Don't you know Ireland is different, booms and busts that happened elsewhere don't apply to Ireland.
They're not making any more land
What happened our promised soft landing? Soft landing was a buzzword and then like Kaiser Soze, it's disappeared never to be seen again
Why was Eddie Hobbs lecturing people on personal finance while flogging homes in Cape Verde?
And askaboutmoney owner and personal finance expert Brendan Burgess telling us bank shares were a good investment in 2008 :pac:
The people calling for a NAMA for the little people were the same Canny McSavvy investors patting their own backs a few years ago

I feel lied to
I wanted to say something but Bertie told me I should kill myself

And I also learned so called experts realy don't know much more then we do

who_ru

it's herd mentality that got most into dire situations, herd mentality in the banking sector, AIB & BOI chasing market share from the crazy economic entity that was Anglo Irish Bank.

they inflated the money supply, which inflated asking prices, which inflated mortgages being sought by people, which inflated greed & irresponsibility across the board.

in many respects the Irish economy then was totally dysfunctional, a total bubble based on credit. Depressingly it's even more dysfunctional today. since 2008 there have been fewer than 1000 repossessions, despite the fact the 90,000+ mortgages are in arrears.

add in escalating energy costs, transport costs, insurance costs, food costs, cuts in public spending and higher taxes now and in the future, well it isn't going to be very pretty in Ireland for the next 4 or 5 years at least.

antiskeptic

Jean said: "The builder even laid on breakfast.

Ah, that was nice of him..

"We heard about it through word of mouth," said Mary, who is also from Naas. "What is going to happen in Naas? There simply isn't enough houses for our youngsters. They can't put a roof over their heads in the town they were born and bred in.

And now, thanks to the manipulative greed of the sellers and the stamping-over-each-other-to-get-ahead mindset of the buyers (combined, we call it 'human nature'), they can't put a roof over their heads in the country they were born and bred in.

Rabidlamb

So the same banks who had lent extortionately to developers had to ensure the houses were sold to make their return.
To recoup this money mortgages had to be made available at 8+ times peoples salaries with 35/40 terms being introduced.
The banks couldn't use common sense in mortgage lending as they would be cutting off there nose to spite their face.

Worst offenders in this feeding frenzy were the mortgage brokers / auctioneers who knew everyone's top line before discussions even begun.
I hope that every cowboy in on this act is destitute & has lost everything.

fricatus

Treehouse72 wrote: »

It still astonishes me that people couldn't see it was a bubble. I will never, ever get my head around how people thought prices would just keep on going up forever. What kind of madness is that?

It's easy to say that from today's remove, but I remember looking forlornly at house prices in 1998 - maybe £80k for a three-bed semi - and thinking "Jesvs, I'll never be able to afford that".

By 2001 even the most basic house was outside my reach, even though I had a decent enough job. When 9/11 happened, I'm sure house prices fell, but my (meagre) salary was frozen for 18 months. By 2003 I thought that we were in mad bubble territory, and surely the end of the boom in house prices was around the corner.

Come 2005, prices had gone up even more - to €300,000 for most places, and the prevailing mentality was that "well they didn't fall in '98, or in '01, or in '03 - why would they fall in '05?"

In 2006 I got a big pay rise, my SSIA matured, and I was finally able to afford a place of my own. I was well into my 30s, so putting off buying was only going to get more and more expensive... so I bought.

Happily I bought a house that I liked, in an area that I liked and I'm still living there. (I almost bought in west-Dublin Legoland rather than moving home to Waterford *shudder*). I'm in massive negative equity, but I can still easily afford the place.

The point is, the boom carried prices skywards all during my working years. House prices were crazy when I left college, and by the time I got to "settlin' down" age, they were still crazy. Not being an economist, why would I have thought things likely to change from the way they'd been for the previous 15 years?

munchkin_utd

fricatus wrote: »

<snip> I'm in massive negative equity, but I can still easily afford the place. <snip>

I've underlined the important bit!

Is nigh on completely irrelevant if you are in negative equity if you can still make the re-payments. You arent going to be turfed out of your home any time soon so happy days.

OK, you cant move to another place easily.
So, youre excluded from "the market" but could "get on the ladder" a few years back.
But others couldnt "get on the ladder" before now, now can (pending mortgage approval!).

So no matter whether you have crazy prices increasing insanely, or prices dropping like nobodys business, someone is going to get stung in an upward OR downward price move.

(getting a bit philosophical on the matter!) The ONLY question is who not if someone will get stung!

Rabidlamb

It hasn't been as penal for some as the media might portray.
Yes, I bought in 2005 & those more knowledgeable will wag their finger but I've 3 things in my favour.

(1) Lowest interest rates in the history of the state. Paying 2% on a €200k mortgage = 5% on a €145k mortgage.
http://www.drcalculator.com/mortgage/
Even though I overpaid for my house I have not overpaid for the loan, a lot of people miss this point.
(2) I'm now over 6 years into a 25 year mortgage, at this point you really notice the principal being eaten away. This is a great buffer against negative equity plus the house will be mine just as my kids start college.
(3) We're yet to experience a bout of inflation but it will come.
Then you'll laugh as it costs more to fill the car than pay the mortgage.

I'd still argue I made the right decision back in 2005.
I could have pushed for €360k house in Naas at the time but I'm so glad now I didn't.

Monty Burnz

four18 wrote: »

Hard to believe this was only 5/6 years ago
http://www.leinsterleader.ie/news/local/couples_camp_out_in_hope_of_buying_their_first_home_1_1923383

How people did not realise it was a bubble continues to baffle.

Monty Burnz

Rabidlamb wrote: »

(3) We're yet to experience a bout of inflation but it will come.
Then you'll laugh as it costs more to fill the car than pay the mortgage.

What do you think will happen to interest rates when this huge inflation occurs?

(incidentally, well done on going for a 25 year mortgage)