Going by tonight's news, the north of Ireland was one of the worst areas for the collapse in the housing market in the whole of Europe.
How much do you think the value of your home as dropped in the market place?
I reckon my own is in the region of -35 to -40% down from its so called height, only an issue if I need to sell in the future.
Myself and the wife bought an apartment for 183,000 two and a half years ago in Belfast which was a fair price in them days. Nowadays there is a similar apartment for sale in the same street for 100,000.
we're caught by the balls. were only planning on staying there for 2 years then moving onto a house but we've no choice but to stick it out at the minute.
Hasnt dropped a bit.
My house has dropped from £340,000 to about £225,000 but i only have a mortgage for about £100,000 so i'm not too bad, there is a few lads a lot worse off than me
Two different aspects here.
1 the value of your house, that you are prepared to put it on the market for
2 the Value that the mortgage holder (bank) value it at.
Or
3 The price someone is willing to pay
4 The likeihood that the person can get the finance from the bank
Quote from: balladmaker on March 05, 2010, 12:52:23 AM
I reckon my own is in the region of -35 to -40% down from its so called height, only an issue if I need to sell in the future.
It's a problem if you go looking credit if you are paying morethan it's worth.
Well we were first time buyers and both in our mid 20's so got close to a 100% mortgage so like I said, no matter what way you look at it, we're caught by the balls.
Can't see any end in sight for next 10 years or so.
i feel sorry for those that bought at the top of the market, but at the same time im wondering what people back home were thinking. A house bought for 60k become 250k. Did folks really expect that to last ?
However its a great time to buy for for those who can get credit. The problem is that the lending institutions have made it very difficult with new policies and procedures.
QuoteIt's a problem if you go looking credit if you are paying morethan it's worth.
Thankfully we bought 9 years ago, so are still well on the right side of negative equity thankfully. In the strange situation where our mortgage lender values the house way above the current market value i.e. about 35k of a difference between the two, I found that strange.
We're buying at the moment. Probably down about £120k of the height of the market but that was all fairytale stuff anyway. Up about £30k in real terms based on a valuation a few weeks back. Some good bargains to be had out there but a lot of vendors still being greedy/unrealistic about what they can expect.
We had a fair offer sitting on a property for the best part of last year (at least 9 months) and the vendor kept trying to screw an extra few grand out of us even though I'd moved towards him twice. I eventually got fed up with him shortly before Christmas and withdrew all my offers. Next thing I had the estate agent on the phone asking me to reconsider, then the vendor on the phone practically begging me to put my first offer back on the table. Then a week or two later the vendors wife was on the phone to say she didn't know he had asked me for more money and asking me to make the original offer again. Glad now I didn't there seems to be a lot more coming on the market now as people who were trying to hold out have finally bitten the bullet.
Bought at £230K, 5 years ago. Prices continued to climb to £300k.
Now they for sale at £200k (though probably wont shift until at least £160k)
Had intended to move around now but will try and surive in this one now.
Cos we are now staying, value doesnt matter, its can we afford the mortgage...
wife lost job last year and mine will probably go end of this....One big mess....
Bought at £146000 a few years before the peak and a house down the street sold at £235000 at one stage.
2 houses on the street are now on the market at £145000 and £170000. I'd just be happy enough to hang about for another few years and then hopefully end up with a few quid towards a deposit for a new house.
I'm also very lucky at the minute as I'm on a tracker mortgage at 0.49% above the base rate. Reading the opinions from the "experts" seems to suggest that interest rates are going to stay at 0.5% for the majority of this year (if not into next year) and a neutral UK interest rate may lower from the original 5% (ish) to 4% (ish). With the additional capital I'm managing to pay off with the low rate I'm hopefully more than covering any further drops in prices (hopefully anyway!!)
The maximum value for the north's property was a false value. unless you bought at this time you cannot say your property 'dropped' in value
I don't know what this year will hold for me but all i know is my job is on it's knees and how much longer my boss can afford to pay me with little to no work is another matter. I have good equity on my home as it's worth £240k and i've a mortgage for £100k but there is no way i'm messing with that. I have insurance out that pays £800 a month for a year so hopefully that will help as well as an option of a years holiday on my mortgage. It's gonna be a long year lads :(
On the false value, i was offered £340,000 for my home at the height of the boom and turned it down :o if i'd have taken that and held of for a year or two and then rebought i'd prob have the same house now with no mortgage :'(
QuoteThe maximum value for the north's property was a false value. unless you bought at this time you cannot say your property 'dropped' in value
Correct, but try telling that to those who did purchase with real money 2 to 3 years ago.
QuoteOn the false value, i was offered £340,000 for my home at the height of the boom and turned it down if i'd have taken that and held of for a year or two and then rebought i'd prob have the same house now with no mortgage
And a neighnour of mine did just that. Sold not far from the height, rented for the last couple of years, and is now on the lookout for a so called bargain....for every loser there is a winner somewhere.
Quote from: Bensars on March 05, 2010, 10:17:27 AM
However its a great time to buy for for those who can get credit. The problem is that the lending institutions have made it very difficult with new policies and procedures.
I think this is looking at it from the wrong side. The problem is that lending practices were bad and this led to the difficulties now. I don't think they have made it difficult to borrow they are just no making it easy. If they had have done this over the last 10 years things wouldn't be so bad. A nod and a wink would have got you a mortgage twice that you could afford 3 years ago.
Have built on the wife's family land so any previous worth was just numbers on a sheet. I'll be leaving the current gaff in a box. Having said that I would assume still in positive equity but not sure how much by.
I've just recently bought a house. It was only built in 2007 and the vendor is taking a loss of approx £115k in selling it.
The people worst affected are probably the first time buyers, many of whom are stuck in a small house/apartment suitable for a couple and won't be able to move 'up' into a family home.
http://www.youtube.com/watch?v=vnLTxEBpMYo&feature=channel
No sign of rates increasing any time soon, but once they do, with the current more demanding lending environment (by that I mean more realistic than the fastasy loans of a couple years ago), could find first time buyers squeezed out again. The north may well have seen the biggest drop in prices, but surely it must have seen the biggest boom, or at least one of.
Prices rose by what 150%? and then fell by 40% over course of 10 years, that is still 50% over 10 years, or 4% p.a. That would seem to be something more in line with GDP growth than what the north, and indeed many other places saw.
I'm no economist, but I can see two scenarios. Wiith the £ screwed and the € screwed, the next govt will have to balance the budget which will mean hard times indeed - not really good for those who own a property, but for those like balladmakers friend who are cash rich, means they may get an even better deal than about now.
Alternatively they try and induce inflation with rates "low for long" as they are shit scared about ending up in a Japanese style lost decade. If they are successful, then house prices will rise in value, and homeowners will see the the value of their debt inflated away. On the negative side, wages unlikely to rise as fast as house prices, so good look trying to find a new house. Additionally those who have been prudent over the last decade will be raging as the value of hard earned savings disappear in smoke.
Now I'm a committed pessimist, but either way I look at it, things look pretty crap! People will simply have to adjust to the idea that they've had their heads up their holes for the last decade and that they are poorer than they thought they were, so no more keeping up with the Jones' maybe...
Anyone know if any of the major lenders are offering 100% mortgages at present?
You would be doing well to get a 90% mortgage ( most people wouldnt get a 1% mortgage!!!)
I've been pricing around and the best I've seen is 90% - Alliance an leicester are offing a 3.89% fixed repayment mortgage which isn't bad. Alternatively they are offering a 2.99% tracker mortgage
Quote from: el_cuervo_fc on March 16, 2010, 09:30:59 AM
I've been pricing around and the best I've seen is 90% - Alliance an leicester are offing a 3.89% fixed repayment mortgage which isn't bad. Alternatively they are offering a 2.99% tracker mortgage
Its 4.99% for a tracker based on a 10% deposit.
if you want the 2.99% you have to put a minimum of 25% deposit
Quote from: nrico2006 on March 16, 2010, 09:11:48 AM
Anyone know if any of the major lenders are offering 100% mortgages at present?
Ulster bank are offering the 95% momentum mortgages on certain developments
Quote from: Bensars on March 16, 2010, 09:41:45 AM
Quote from: el_cuervo_fc on March 16, 2010, 09:30:59 AM
I've been pricing around and the best I've seen is 90% - Alliance an leicester are offing a 3.89% fixed repayment mortgage which isn't bad. Alternatively they are offering a 2.99% tracker mortgage
Its 4.99% for a tracker based on a 10% deposit.
if you want the 2.99% you have to put a minimum of 25% deposit
If you are an existing customer they give you the 2.99%