Glut of repossessed houses could depress prices ‘by up to 25%’

The_Morrigan

lima wrote: »

Correction noted.

Investors in Irish property are the reason I have a job? Really? What a troll comment that does not even deserve an answer :rolleyes:

cookie1977 wrote: »

people in glass houses
kettle calling the pot black
takes one to know one
etc etc ad infinitum

Cut it out

Lima - do not accuse a poster of being a troll - report the post if you have an issue
Cookie1977 - attack the post, not the poster.

lima

handlemaster wrote: »

You must not forget investors are the reason you have a job. If it weren't for investors no risks would be taken to create employment. Money doesn't grow on trees.

Ok, so can you explain to be how an Irish investor with a cash lump sum who is bidding against me on a house is the reason I have a job in one of the top 15 tech companies in the world?

moxin

cookie1977 wrote: »

people in glass houses
kettle calling the pot black
takes one to know one
etc etc ad infinitum

Please list the countless jobs that property investors create.

Zamboni

Foreign banks will get the last of the cream repossessing and selling off properties.
State and taxpayer will be left to pick up an even bigger tab due to the straight jacket of indecision and populism.
1,500 properties stockpiled - it would be revealing to see breakdown by bank...

gaius c

Zamboni wrote: »

Foreign banks will get the last of the cream repossessing and selling off properties.
State and taxpayer will be left to pick up an even bigger tab due to the straight jacket of indecision and populism.
1,500 properties stockpiled - it would be revealing to see breakdown by bank...

Don't know if foreign banks are really going to take their lead here. They've been dragging their feet as much as the Irish banks to date.

It's about 3.4% of current national stock on daft so it's far from insignificant considering the puny level of transactions and it's likely to grow as repos gather pace.

cookie1977

gaius c wrote: »

It's about 3.4% of current national stock on daft so it's far from insignificant considering the puny level of transactions and it's likely to grow as repos gather pace.

Again though I suppose where they are located and what type of properties they are will decide whether or not there's any interest in them, never mind the asking price.

Zamboni

cookie1977 wrote: »

Again though I suppose where they are located and what type of properties they are will decide whether or not there's any interest in them, never mind the asking price.

Ah will you ever stop.
It doesn't matter where or what they are.
Everything has a price.
There is no reason why 1,500 properties should be held off the market by banks that need capital.
Other than dumb political interference attempting "long term economic value".

moxin

Irish banks are playing an own goal. As prices have gone up in some areas, less and less people can afford to take out mortgages(proved by 2013 stats so far), that's less profit for the banks on selling current mortgages.

cookie1977

Zamboni wrote: »

Ah will you ever stop.
It doesn't matter where or what they are.
Everything has a price.
There is no reason why 1,500 properties should be held off the market by banks that need capital.
Other than dumb political interference attempting "long term economic value".

Rightly or wrongly the banks will want to get the most they can for these properties and as long as there's no pressure on their books to sell them why wouldn't they wait.

The_Conductor

Guys- less of the sniping at one another, personalising of posts, snide comments and general snarkiness- its very offputting to most people and generally lowers the tone of the whole forum- while discouraging genuine people from posting.

I'm getting blue in the face saying this- and people's previous good form posting in this forum has in many instances meant we've given you a little more latitude than we normally might do- but a lot of the language, comments, sentiment and personalisation of posts in this thread (and in other threads)- is actively discouraging genuine discourse by interested posters.

Gentle prods on thread to tone down contributions has been ignored by some posters- the gentle approach has obviously not worked, and a harder, more firm approach will ensure.

Regards,

The_Conductor

Villa05

Insight into how this is going to play out

Speaking on RTÉ’s Today with Sean O’ Rourke Mr Maguire said thousands of properties will be repossessed in 2014.

Mr Maguire said: "People who are facing repossession are those who cannot afford a mortgage based on the current value of the property.

“If you are in that situation and it is not going to change in the foreseeable future, like six months, you do face repossession.

“What kind of level that is is hard to know but it is certainly thousands and whether it's over 10,000 remains to be seen"

http://www.rte.ie/news/2014/0115/497945-flac-house-repossessions-to-become-easier/

Villa05

moxin wrote: »

Please list the countless jobs that property investors create.

NAMA, IMF, Insolvency experts, advisors, Expert Groups, Do nothing jobs for retired politicians..............

lima

Villa05 wrote: »

Insight into how this is going to play out



http://www.rte.ie/news/2014/0115/497945-flac-house-repossessions-to-become-easier/

Great news. Certainly seeing more and more repossessions as I make my quest to own a house. Honestly don't think anymore that it will make much difference to pricing due to the alarming bidding wars going on by cash buyers, but at least there will be more stock on the market apart from executor drivel.

handlemaster

It would take a lot of property to come on together in Dublin to stall prices. I Dont see it happening . There's so little property for sale at the moment.

gaius c

Villa05 wrote: »

Insight into how this is going to play out



http://www.rte.ie/news/2014/0115/497945-flac-house-repossessions-to-become-easier/

Dangerous precedent to be setting if true.
What if they can afford a mortgage of more than the current value but less than their contracted obligations?
It would be a defaulters charter.

Villa05

gaius c wrote: »

Dangerous precedent to be setting if true.
What if they can afford a mortgage of more than the current value but less than their contracted obligations?
It would be a defaulters charter.

Has any decision relating to this mess been a good one. the likleyhood is that trend is not going to change anytime soon

MysticalRain

The_Conductor wrote: »

Ps- The Economist do a good quarterly property survey, even the Business Post, despite being a lot tamer than it used be, can be quite impartial. Keeping an eye on CSO stats and Central Bank trends- is also a good way to keep tabs on whats happening.

Thanks for the helpful suggestions. I'm a big fan of the Economist as much as I disagree with many of their opinions on things. The Business Post newspaper is a mainstream media source I had overlooked, and will check out in due course.

gaius c

Villa05 wrote: »

Has any decision relating to this mess been a good one. the likleyhood is that trend is not going to change anytime soon

Aye. The more it goes on, the more I think about Morgan Kelly's line:

The gathering mortgage crisis puts Ireland on the cusp of a social conflict on the scale of the Land War, but with one crucial difference. Whereas the Land War faced tenant farmers against a relative handful of mostly foreign landlords, the looming Mortgage War will pit recent house buyers against the majority of families who feel they worked hard and made sacrifices to pay off their mortgages, or else decided not to buy during the bubble, and who think those with mortgages should be made to pay them off. Any relief to struggling mortgage-holders will come not out of bank profits – there is no longer any such thing – but from the pockets of other taxpayers.

Villa05

While we are on the topic of poor decisions

NAMA is to close its “80/20” mortgage scheme which was designed to protect buyers of houses from the agency from future house price declines.So far 112 houses have been sold to buyers who opted to use the scheme.

“The fact that buyers are no longer actively seeking protection from price falls is a welcome sign that the housing market is stabilising and returning to more sustainable, normalised conditions,” the agency said in a statement.

The National Asset Management Agency (NAMA) said that the so called deferred mortgage scheme will be closed to new buyers from the end of May this year.

How much was spent to get this scheme up and running and only 112 takers.
The figures are more reflective of how few actually qualify for a mortgage. This fact is spun to try and indicate we have sustainable, normalized market when the opposite is the case.
http://www.independent.ie/business/namas-8020-mortgage-scheme-set-to-close-29923043.html

280 properties were available under the 80/20 scheme
http://www.irishhouses.ie/nama/nama-180-houses-mortgage-scheme.php

Villa05

Bank of England considering 30 year fixed rate mortgages. Signs of common sense entering the property market, albeit across the pond

http://www.telegraph.co.uk/finance/mark-carney/10575312/BoE-considers-return-of-30-year-fixed-rate-mortgage-to-fight-housing-bubble.html

douglashyde

First reply to Boards.ie in a few years. But I needed to, to this comment.

I'm in the same position. Young professional in a tech job - very well paid, but can't purchase a house.

However with NAMA holding so many apartments and plans to sell them to large sized investors and no incentive for first time occupied owners; this is very hard!

handlemaster

douglashyde wrote: »

First reply to Boards.ie in a few years. But I needed to, to this comment.

I'm in the same position. Young professional in a tech job - very well paid, but can't purchase a house.

However with NAMA holding so many apartments and plans to sell them to large sized investors and no incentive for first time occupied owners; this is very hard!

Why can't you buy ? Are you just looking in areas you can't afford our can you not get a mortgage.

lima

handlemaster wrote: »

Why can't you buy ? Are you just looking in areas you can't afford our can you not get a mortgage.

He/She should be able to buy something, refer to my previous post for reasons why (and answer my previous question too)

lima

douglashyde wrote: »

First reply to Boards.ie in a few years. But I needed to, to this comment.

I'm in the same position. Young professional in a tech job - very well paid, but can't purchase a house.

However with NAMA holding so many apartments and plans to sell them to large sized investors and no incentive for first time occupied owners; this is very hard!

Totally, I feel for you. It's pretty incredible.

handlemaster

lima wrote: »

He/She should be able to buy something, refer to my previous post for reasons why (and answer my previous question too)

Without knowing their financial situation that's impossible to say.

handlemaster

Dublin voted best european city to buy property by 500 experts across european up 15 places according to rate web site. Looks like the 25% drop is along way off as original poster was suggesting

lima

handlemaster wrote: »

Dublin voted best european city to buy property by 500 experts across european up 15 places according to rate web site. Looks like the 25% drop is along way off as original poster was suggesting

I think most of this thread realises that, it's mostly turned into a debate between people with houses and people without houses. One side thinks it's unfair the other side is a vested interest in property increases.

cookie1977

I think most of us are looking for some acceptable solution that allows the country to move forward rather than hording problems for the future. Were we differ is on our ideas to make that happen. There is no single vested interest we're all vested interests.

Villa05

handlemaster wrote: »

Dublin voted best european city to buy property by 500 experts across european up 15 places according to rate web site. Looks like the 25% drop is along way off as original poster was suggesting

That article related to Commercial property. There is not as much interference in that market.

handlemaster

Villa05 wrote: »

That article related to Commercial property. There is not as much interference in that market.

True I missed the commercial bit when reading it .