How much did house prices drop after 2008?

magicbastarder

when i heard the head of the central bank announcing it wasn't their job to stop banks issuing 100% mortgages, that's when i decided that there had to be a reckoning.

Thargor

magicbastarder wrote: »

when i heard the head of the central bank announcing it wasn't their job to stop banks issuing 100% mortgages, that's when i decided that there had to be a reckoning.

The PropertyPin was amazing back then, they called it all the way up and then down. Pity its being run into the ground by that unbearable Qanon/MAGA muppet.

ted1

2012 was the lowest point.
We bought or family home in may 2012 for 212k
3bed semi in killiney.
We’d been renting in the area for about ten years. 975 for a 1bed and then 1259 for a 3 bed

So we’d been looking for a while and even though we had mortgage approval, I couldn’t justify paying 450k for a three bed.

Houses is now worth about 545k. It’s within 80m of the 1 bed apartment we rented and the three bed house we rented.

ted1

magicbastarder wrote: »

when i heard the head of the central bank announcing it wasn't their job to stop banks issuing 100% mortgages, that's when i decided that there had to be a reckoning.

100%?, several of my friends (Doctors and Accountants) got 110% so they could furnish them

ted1

magicbastarder wrote: »

when we were selling our place in 2012, the estate agent we were dealing with - a very nice chap, actually - was telling me his brother in law worked for one of the banks; and near the peak was allowed borrow (and i remember this very specifically) twenty one and a half times his salary, against a property.
it was a two or three storey over basement property, and he lived in the basement flat and rented out the property above for good money.

just to keep the maths easy - let's say his brother in law earned 50k (i'm sure it was probably more); but that meant he was in hock to the tune of €1.075m on that salary, and monthly repayments would have been very roughly €5k.
however, let's say that for whatever reason, he wasn't able to rent out the property for two months. he'd have had €10k in repayments to make on a *gross* salary of 50k. even if you double/triple the salary, you'll also double/triple the repayments...

F€€k

beauf

Thargor wrote: »

The PropertyPin was amazing back then, they called it all the way up and then down. Pity its being run into the ground by that unbearable Qanon/MAGA muppet.

In fairness the property pin is like someone predicting rain in Ireland. Eventually they'll be right.

Mad_maxx

beauf wrote: »

In fairness the property pin is like someone predicting rain in Ireland. Eventually they'll be right.

It's a site for permabear cranks

whippet

Bought a 3 bed semi in Dublin for €225k in 2004 .. it peaked about €340k in 2007. In 2009 similar ones were selling for about €140k.

We rented it out for €1k a month and moved out of Dublin.

We rented for a couple of years and bought a 5 Bed detached on the coast for €340k in 2011 ... it was originally on the market in 2009 for €1.1m.

We then sold the Dublin property for €245k in 2014

I’ve no idea what the current value is on either .. but I couldn’t care .. I’ve no intention of moving !

Buddy Bubs

Just to note I was offered 12 times my salary as a single applicant mortgage in 2010 in my 20s. I was mortgage approved in 2007 for 360k on the house I ended up buying in 2010 for 220k. I was earning 30k at the time. Would have had to rent out rooms which I suppose I could have easily done. Didn't go for it as I would have been wiped out month to month. Banks wouldn't have cared though.

360k was 100% mortgage too. In 2010 I put down 10% so mortgage was 200k.
At current rates, repayments would have been almost doubled from 800 to over 1500 a month.
House is now worth 300k and I'd struggle to get a mortgage for it under current rules even though my salary has increased hugely in the 10 years since I bought it.

str8y

We had two 90% mortgaged properties but decided to emigrate in 2007.
Sold the 3 Bed Terrace in Tallaght for 342k in Spring 2007. 5 Similar houses in the estate sold for around 125k in summer 2011.

Sold the 3 bed in Drogheda for 320k in December 2006. Neighbouring houses sold for 60k in 2011 and 90k in 2014.

We returned to Ireland and rented for a while in Dublin. Due to age and earnings banks would only offer us a 90k mortgage 2018. Decided to move out of Dublin ( no choice!) and bought a beautiful 3 bed bungalow on half an acre with our savings for 73k.

We have been truly blessed.

Samuel T. Cogley

Buddy Bubs wrote: »

Just to note I was offered 12 times my salary as a single applicant mortgage in 2010 in my 20s. I was mortgage approved in 2007 for 360k on the house I ended up buying in 2010 for 220k. I was earning 30k at the time. Would have had to rent out rooms which I suppose I could have easily done. Didn't go for it as I would have been wiped out month to month. Banks wouldn't have cared though.

360k was 100% mortgage too. In 2010 I put down 10% so mortgage was 200k.
At current rates, repayments would have been almost doubled from 800 to over 1500 a month.
House is now worth 300k and I'd struggle to get a mortgage for it under current rules even though my salary has increased hugely in the 10 years since I bought it.

I was working in retail and the wife was on a PhD stipend and they offered us 500K :pac:

Oddly enough I wish I'd took it and done what I did years later which was buy a house out in a less desirable suburb rather than a city centre apartment. I fecking hate being a LL and will probably just take the hit and sell after the current tenant vacates.

beauf

Banks offering crazy loans, then denied any culpability in what happened.

Samuel T. Cogley

beauf wrote: »

Banks offering crazy loans, then denied any culpability in what happened.

I reckon my broker was just making stuff up for our application, although I agree some of the lending practices were bonkers.

Buddy Bubs

Buddy Bubs wrote: »

Just to note I was offered 12 times my salary as a single applicant mortgage in 2010 in my 20s. I was mortgage approved in 2007 for 360k on the house I ended up buying in 2010 for 220k. I was earning 30k at the time. Would have had to rent out rooms which I suppose I could have easily done. Didn't go for it as I would have been wiped out month to month. Banks wouldn't have cared though.

360k was 100% mortgage too. In 2010 I put down 10% so mortgage was 200k.
At current rates, repayments would have been almost doubled from 800 to over 1500 a month.
House is now worth 300k and I'd struggle to get a mortgage for it under current rules even though my salary has increased hugely in the 10 years since I bought it.

12 times. Jesus.

fago

Bought Nov 2005 for 340
Sold 2019 for 315, incl 50k extension in between
Still renting it back from our new owner cause covid
But it all works out in the end...

Galwayguy35

When I went to get my mortgage in 2007 I was approved for 5 times my salary even though its just myself paying it off.

I'm on a tracker, the interest is nothing on it so no big hassle keeping it paid but I'm sure for a lot of people who got the same approval ended up in a whole heap of trouble.

Buddy Bubs

[Deleted User] wrote: »

12 times. Jesus.

Now I was just finishing up an accounting training contract so my wages were clearly going to increase but still, it's nuts. I would have had a mortgage payment of 1500 on take home pay of 2200 or whatever it was. Now I have a payment of 800 because I didn't bite.

magicbastarder

my wife bought with her brother, in 2004 i think; they went to the bank and told the manager they wanted to borrow €250k, and the manager said 'would you not borrow €450k? we'll lend you that'.
they demurred.

my father was a bank manager, retired in 1999. it was like rats leaving a sinking ship, they were clearing out all the old school managers and replacing them. i picked him up from his leaving drinks - i think there were six other people leaving that same day.
needless to say, he was amazed at some of the carry on over the next few years.

Ush1

Bought my family home at end of 2012. 3 bed semi with converted attic in South West Dublin. Bought for 185k, recently valued at 380k.

Mad_maxx

ted1 wrote: »

2012 was the lowest point.
We bought or family home in may 2012 for 212k
3bed semi in killiney.
We’d been renting in the area for about ten years. 975 for a 1bed and then 1259 for a 3 bed

So we’d been looking for a while and even though we had mortgage approval, I couldn’t justify paying 450k for a three bed.

Houses is now worth about 545k. It’s within 80m of the 1 bed apartment we rented and the three bed house we rented.

Didnt think it was possible to ever buy anything in kiliney for 212K , not in twenty years and more anyway ?

Mad_maxx

Galwayguy35 wrote: »

When I went to get my mortgage in 2007 I was approved for 5 times my salary even though its just myself paying it off.

I'm on a tracker, the interest is nothing on it so no big hassle keeping it paid but I'm sure for a lot of people who got the same approval ended up in a whole heap of trouble.

while you are presumably not far off half way through your mortgage term ? , it must have been hard knowing so soon after you bought that prices had dropped so sharply ?

NSAman

I bought when the madness of the loans was happening.

Just wanted the price of the house (bought family home) and applied for a regular mortgage. Broker asked me is that all ? Just for giggles I asked how much could I borrow...... no joking..4 million.

ted1

Mad_maxx wrote: »

Didnt think it was possible to ever buy anything in kiliney for 212K , not in twenty years and more anyway ?

I may have told a porky , it was actually €212,500.

Galwayguy35

Mad_maxx wrote: »

while you are presumably not far off half way through your mortgage term ? , it must have been hard knowing so soon after you bought that prices had dropped so sharply ?

Yeah I often think if only I held off for another year

Mad_maxx

Galwayguy35 wrote: »

Yeah I often think if only I held off for another year

then again , would have been a lot more difficult to get a mortgage at that stage

Chris_5339762

Bought in 2011, within a month or two of the bottom of the market, for €205k. Sold it eight years later (and a lot of legal wrangling) for €265k. Not too shabby.

In the height of the frenzy I think it was up on sale for about €400k, absolutely ludicrous.

JustAThought

I remember and still have somewhere the FLlIERS (not even letters) from the bank sent to me at my (newly bought) home address by post with ore-approved holiday loans for 20k and ore-approved car loans. i sometimes shudder and wonder did many take them up on them - no doubt your home would be your leverage or collateral.

OP - what you forget is that while some people could get mad money or were made mad offers once tgey had a house to use as leverage it was extremely difficult to get a mortgage and they - the FF Bertie government had taken away the first times buyers grant of 3k ‘because nobody needed it’. I had a big salary and 30k+ savings and none of the banks I hd saved with nor paid my salary into would touch me for a mortgage - I had to do all kinds of dogey things to get the mortgage I needed for a nice house but not a huge one.

You’ll see on the internet all kinds of tragic stories with plots of land and parts of farms sold for sutes and half built McMansions with no roof built or walls only waist high of huge footprints and the family land lost and taken by the bank to be sold to repay the unsustainable payments - its not so much about debt and profit but a lifetime of saving by parents lost and generations of land in families
clawed away by unethical lending. Sure - at one stage my house was ‘worth’ and sold for 200k more than I paid for it but you then could not get a mortgage to upgrade in those prices for the same house or be able to afford to buy even a one bedroom bigger house in the same area. And that steady upward rise gd been going on for 30 years with the radio & TV talking for decades about how houses were profitable/expensive and NEVER a downward trend - not in my entire lifetime.

It was a vicious circle - and unless you were going to emigrate permanently or move from the city to a field in the middle of nowhere with a 4 hour daily commute as many did for work and never want to own in Dublin/Ireland again then you were stuck with whatever you had bought no matter how good or bad it looked on paper. Some of these houses were then lost in the recession that followed - companies collapsing, nobody hiring, competing with slave labour salaries being outsourced to India and Poland - particularly in Accountancy and IT areas - many lost even their second (bought) house - and then were simply ruined. No job, no deposit, now a second time buyer for tax and deposit reasons - and atill the mortgage loaned minus the sale price by the bank repossesion still owed to the bank. There is no such thing as ‘handing back the keys’ and that debt is yours for life. And of course - there is no social welfare payment to help mortgage owners - no rent allowance, no HAP, etc - you are just thrown to the wolves; no matter how much tax you paid all your life or how many people your company used employ.

I think a lot of people learned never to buy a one bed appartment as so many were trapped with them and they were virtually unsellable, but people who don’t want to be inna council house and who want to earn and own their home still have to live somewhere - whether you win or lose you still need for what you buy to be safe, liveable, in some way not a total burden and in some way convenient. The tragedy is that in other countries you can buy, sell, move, trade up or across and not be crucified with debt or lifelong financial worry - thats one of the worst things it hs done. other countries you can move with your job and take a hit but here its like a lifelong almosy unsurmountable decision. Sadly plan B & Z is not an attractive one for many.

Chris_5339762

I do know of one farmer who was sitting on say, 100 acres. Sold it for lets say €10 million (I have no idea of the figures involved) during the boom, sat on his money for a few years and then bought the whole lot back for about €2 million when the market crashed and the developer wanted rid. Went back to farming with a tidy profit.

Darc19

Lexio7 wrote: »

Speaking to neighbours in my estate who bought in 2005/6, when the estate was built, paid c.380k.

I paid 260k in 2015.

Current asking price is now 320k.

Remember that most of your neighbors probably have a tracker mortgage of 1%, and got extensive mortgage interest relief. Over the life of yours and their mortgage, you are both probably paying a similar net amount

ted1

Darc19 wrote: »

Remember that most of your neighbors probably have a tracker mortgage of 1%, and got extensive mortgage interest relief. Over the life of yours and their mortgage, you are both probably paying a similar net amount

And they paid 40k cash in stamp duty.