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Unfortunately, I’ve seen all levelsof the spectrum! And the banks made it way too easy for people to borrow too much, It went from the old "2.5 times salary + 1 x second salary", to over 5 x joint salaries! And yes, there were people remortgaging every 2 or 3 years but they could not see the damage that was being done. The one’s I feel most for, are the first time buyers that bought at the peak and got 100% mortgages. Typical of these is a €300,000 plus mortgage on a property that is now hard to sell for €180,000! If it’s your intended long term home, it’s not too bad, but when jobs are lost and incomes slashed and the mortgage can’t be afforded, that’s when it’s a real problem. It’s not like you can just hand back the house, there would be a judgement for the difference between what the bank can fetch for it and the mortgage balance!
Good old Penneys! 😉
I have friends like that, they paid 600k for a 2 bed in the old gasworks in D4… they went to America last year but they couldnt sell the apartment, so they still have it and its rented but falling short of the 1,700e per month payments, they pay the shortfall between rents and repayments
They were both in 100k plus jobs over here and wife took a transfer in work but the husband gave up his 100k job 😯 But after 2 months found a fab job in the US, they rent a stunning house and wonder what is the Irish thing about having to purchase your own house rather then rent?
Very happy but very lucky they can afford to pay for their apartment, but they said its a hassell thys dont want and would rather offload….. but not at the current prices, they dont every plan to come back to Ireland but they have this property that kinda haunts them….When I hear all the talk of ‘buying at the height of house prices’ etc. it does make me really mad when people assume all people had a choice and chose to buy expensive houses without thinking. I was caught out but through no fault of our own. We had our home, it was detached and big enough for us.We had a mortage but we had bought well before the big increase.
However, fast forward to 2004/05 and we needed a bungalow for my daughter who used a wheelchair. Living in a 2 storey house was a nightmare for us all. It came to a head when after a year living in the dining room with her I could take no more. She only saw upstairs when we carried her up for a bath (she was quite heavy) and her bedroom was the old dining room. We couldnt buy a bungalow in Drogheda as they were so expensive. We ended up moving somewhere out of town based simply on it being a bungalow we could get a mortgage for and the school being close by and accessible. We bought in 2005 and it was a rip off. I knew it then and know it now. But we had no choice, our quality of life was very hard and we needed a bungalow long term. What made me really mad was the amount of stamp duty we paid on it, was a previously owned house. And at that time, and still nobody builds bungalow estates in town s anymore…the only requirement is to have an accessible down stairs toilet, but what about sleeping/bathing.
I don’t know where people with mobilty issues are supposed to live…in the back of beyond in a house that they can buy that is cheaper because its so far from everything, which again causes problems for people with limited access to transport, especially our crap public transport system in rural areas.
Bit of a rant. But I do feel people with mobility issues and parents of children with mobility issues face huge issues when trying to buy houses that will allow people with disabilities to live a good quality life.
I always said there should have been a stamp duty excemption for people buying a particular house eg. bungalow for the main use of a person with a disability.But there never was and still isnt.
€1700 per month on €600,000 sounds like interest only (unless they got an amazingly low interest rate!) so at some stage it would have to come back above the value of the mortgage amount, or else they would have to think about paying capital and interest to bring the mortgage down. At least things are going well for them 😉
I agree Mummy, that kind of an exemption would have made a lot more sense than some of the ones they dreamed up!
mummy5 i agree there should be, you should mention to campaigners too….but totally agree you didn’t have a choice….
i think what it is i feel is those who did have the choice and chose to buy way above their means, knowing it too…..and still living the life and in huge debt…
i hear friends say oh i’ve no money and are in debt but instead of saving a few euros they save alright and buy iphones, ipads, new clothes (not from penny’s) etc etc for what? will they pay your mortage? no, your heating? your electiricty? your food? etc etc…
they complain they have no money but yet you go an buy stuff like that…it doesn’t make snese, however i think it’s not to let others know they’re lacking the money, everything is bought on credit….surely it would make better sense to be sensible rather than pretending….
but there are people who did buy when prices were ridiculous who didn’t have a choice it was all that was available..and now stuck…crazy
I agree some people are in difficulty because of bad luck. Lived within their means, were carefull and lost their job(s), they should be helped. But what about the ones who STILL did not learnt the lesson and are living on credit for fancy cars and new phones.
I do agree, if you need your car to work or look for a job, you get a credit if you can’t afford it. But no need a new one and huge massive expensive one.We are carefull with our money, hope will always be ok.
But I don’t really want to bail out people who by choice lived a posh life when I was counting to avoid credits, and only fligh ryanair, no luggage.
No fancy holidays either.
And yes, persons like you Mummy5 should have not have to pay stamp duty, you changed within your means because you HAD to change home not just because you wanted a new bigger house. It was needed, not a luxury.Fabienne
Mummy5 I know you had a lovely house and your family all around you, its terrible that there is NOTHING done for people with a disability, i wasnt getting at you, i think anyone who has lost there job should get help, its the people who ARE STILL going out and getting all the best of clothes, holidays etc and just put it on the never never!
I’d rather dress from penneys and shop in Aldi and small credit card bill, have the kids in brand names and have hundreds and hundreds on Credit cards….. Im a very if i dont have it i dont spend it and when i do have it its paying my bills…. i dont know maybe im wrong, maybe i should live for the day and run bills up as you only live once, but i wouldntsleep at night!!!
FC yes they got 110% mortgage intrest only for the first 5 years, they were planning to sell after 5 years to go to America, but thats all gone belly up! Think they are holding out for the market to rise or maybe cut at a loss…. they will be home in March so im sure they will have a better idea of what they are going to do….. but one way or another they will lose lots and lots of money!
Just reading through these posts and can see what people are talking about but we are the lucky one who bought prior to 2004/5. We built our house in 2001 and have a wonderful home with no desire to sell. However some people bought as recently as 2009/10 based on the salary they had at the time but now find themselves living by the pin of their collar due to tax hikes and pay cuts. You have to feel sorry for them. What does sicken me is the people who are living beyond their means. I recently came across a couple(2/3kids) through work who were on social welfare and with payments towards rent and welfare payment they were grossing in 3274 euro per month plus medical card and are still looking for more there are people out there working their asses off for less. That is what is wrong.
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