Farmer sold his land for €1.5m buys it back for €60k

Ritchi

He probably invested the 1.5m in property or bank shares anyway.

Gurgle

Looks like someone is copping on at least.

there is a realisation by banks that holding on to rural development land is pointless.

During the boom, the site was earmarked for a housing estate with 45 homes on the edge of the village of Crossakiel.
Three local brothers -- Seamus, David and Daniel Fagan -- bought the site and would have hoped to receive €250,000 for each of the completed three-bedroom houses.

One less ghost estate, 3 less property speculators.
I wonder if they're making repayments on the loan.

Lucky for them and us (taxpayers) that they never got the building work started.

riclad

it takes a special kind of stupidity to screw up the economy like this, every joe soap thought if i buy land i can build ten houses on it sell them for 250 k.
SO a bit of land was suddenly worth 1.5m ,
this was based on house prices in dublin,
sure if a house in dublin is worth 300k,
then some eejit will pay 250k for a house in my town.
And the banks were throwing money at these people.
THIS lending was based on the belief that prices will never decrease , and theres an endless amount of buyers who could pay a 200k plus mortgage.
Proper rules on lending,and strict banking regulation would have stopped this happening.

Senna

This buy back of land by the original owner is going on all over the country, another transaction in Donegal had very similar figures, only that the site was much bigger.
Cant blame the land owner.

DebDynamite

I grew up not too far from there and was talking to my dad about it over the weekend. He said "the gas thing is, when the ecomony picks up, "they" reckon he could sell it again for another €1.5million" :rolleyes:

Gurgle

DebDynamite wrote: »

"they" reckon he could sell it again for another €1.5million" :rolleyes:

You can just picture the same 3 brothers in front of the same bank manager planning to build the same 45 3-bed semis all over again.

I wonder if the loan will be approved again.

DebDynamite

Scary how people think that building houses in the middle of nowhere is the norm and this is just a blip we're going though at the moment.

Have people learned nothing!

DebDynamite

Gurgle wrote: »

You can just picture the same 3 brothers in front of the same bank manager planning to build the same 45 3-bed semis all over again.

I wonder if the loan will be approved again.

I doubt it, the ordinary man on the street might think thing will go "back to normal", but I think the banks will be a lot more cautious from now on.

Kenny Logins

seamus wrote: »

I would love to know who comes up with this bollox:

Kells, Co. Meath is not an hour's commute from Dublin city centre. In commuter traffic it'll take 45 minutes to get to the M50 and another 45 to get into the city.
You'll make the Dublin to Kells run in an hour if you have green lights and no traffic all the way. Have to wonder why the Indo is still peddling this kind of nonsense six years after the bubble collapsed and this kind of bull became irrelevant.

https://maps.google.com/maps?saddr=Kells,+Ireland&daddr=Dublin,+Ireland&hl=en&sll=53.726835,-6.874832&sspn=0.01884,0.047164&geocode=FXPOMwMdMBmX_ylLmT8Rm1dnSDHQezGXqccACg%3BFUMMLgMdjnqg_ykvrCfqgA5nSDGgcTGXqccACg&oq=dublin&mra=ls&t=m&z=10

Gandhi

Gurgle wrote: »

You can just picture the same 3 brothers in front of the same bank manager planning to build the same 45 3-bed semis all over again.

I wonder if the loan will be approved again.

Well, the last time the same deal went t*ts up those walking ATM machines known as "taxpayers" were drafted in to pick up the tab, so why the hell not?

jmayo

washman3 wrote: »

And right you should be..:D
The country has just handed him €1.5m and you,your children and their grandchildren will be paying back.!!
The €60,000 he paid to buy back the site probably came from his farm "entitlements" grant, so guess what?? you will also be paying for that.
Still delighted.???

Fook sake you would swear that all the single farm payments were coming out of the Irish taxpayers pockets. :rolleyes:
Most of it comes from the same place the money to keep our lights on in hospitals and schools now comes from.

Also easy to see your attitude to farmers with your strategic placement of quotes.

keyser2012 wrote: »

Ive heard its as low as 6k around the foxford area in county mayo

Have you seen some of the land around Foxford.
Bog, swamp, marsh and mountain.

ABajaninCork wrote: »

What are you talking about?? HE sold his land for 1.5m to some idiot, greedy git developer. The developer either can't get PP or has since gone bust. So they (or NAMA) have to sell the land. The original owner then buys it back at rock bottom prices.

And you say he didn't have much of a clue???

A lot of this is luck.
He was lucky in that some eejit reckoned they could make a fortune from his land and he was futher lucky in that the eejit didn't know how to run a business and went bust meaning the land had to be resold at agricultural prices.
Where the farmer might have shown his smarts is that he may not have ploughed the winfall into overpriced property or bank shares as some did.

BTW this is happening quiet a lot.

DebDynamite wrote: »

I grew up not too far from there and was talking to my dad about it over the weekend. He said "the gas thing is, when the ecomony picks up, "they" reckon he could sell it again for another €1.5million" :rolleyes:

Aint going to happen.
There will not be the same level of idiotic lending that was seen during the bubble for many generations if ever again.
Smart countries learn and make sure it doesn't happen again.
How many tulip bubbles has Holland had ?

Britain had a proeprty bubble in the 80s and another in the noughties, but the size of these pale into insignificance compared to ours.

riclad

Hopefully we have good regulators ,and stricter rules,
or the ecb will be watching to prevent another property bubble in 20 years.
WE cant relay on smart or cautious bankers ,
thats like asking a blind person to guide you across the road.
Prices are still rising in britain,the uk population is rising ,theres simply not enough house s being built to meet demand.
The eejit did,t think prices may fall, demand may fall, and the eejits in the bank based lending on houses in area x being worth 250k ,once prices in dublin fell ,many people lost interest in commuting long distances,or could not borrow to buy a house 20 miles from dublin.

keyser2012

riclad wrote: »

Hopefully we have good regulators ,and stricter rules,
or the ecb will be watching to prevent another property bubble in 20 years.
WE cant relay on smart or cautious bankers ,
thats like asking a blind person to guide you across the road.

Sound like a plan but with economies comes booms and busts. Its just part of the system.

riclad

I think france, germany never had,a boom, bust because they have strict banking rules, on lending,re if someone wants to buy a house, banks can lend x amount based on salary,you have to save x per cent ,you need a large deposit.
SO people on low wages borrowing 150, 200k ,it would not be allowed in those countrys.

Amirani

riclad wrote: »

I think france, germany never had,a boom, bust

You think wrong.

beeno67

riclad wrote: »

I think france, germany never had,a boom, bust because they have strict banking rules, on lending,re if someone wants to buy a house, banks can lend x amount based on salary,you have to save x per cent ,you need a large deposit.
SO people on low wages borrowing 150, 200k ,it would not be allowed in those countrys.

France's bubble is bursting as we speak
http://www.telegraph.co.uk/finance/economics/houseprices/9244152/France-faces-40pc-house-price-slump.html

subway

I would have paid 61k.
Why are they selling all these via hidden "auctions"

jmayo

beeno67 wrote: »

France's bubble is bursting as we speak
http://www.telegraph.co.uk/finance/economics/houseprices/9244152/France-faces-40pc-house-price-slump.html

Every country bar the ones that had bubbles into 90s (Sweden, Finland, Japan) had varying degrees of price hikes due to the massive availability of cheap credit.
Banks in most of the world relaxed lending and hey presto the locals could afford more and added to that you had foreigners (like the Paddies) also coming in buying up property.

But, and it is a massive but, I don't think any country had as big a bubble as oursevles.
USA, Australia, Canada, Britain had big property price increases especially in particular regions.
There were differences to our own bubble in that in the case of places like Australia they actually had underlying economic factors, like their mineral resources helping to push things higher.
Of course that was due to China's boom.

The other thing is in this country the level of personal debt is astronomical.