Anyone experience negative equity on their house?

re

Tom it is amazing how the UK property market is linked to Ireland when it is on the way up. However when the UK market is falling then it has got nothing to do with the Irish Property market at all???
 
perspectives on property market

I agree with Gmme on the subjectivity of many of the exchanges here. The initial poster was worried that her/his home purchased last year might be worth 30K less now and raised the subject of "negative equity". As an emigrant Dubliner living UK with firsthand knowledge of both the Dublin and UK property-markets (owning property in both!) I offered my mite. Other posters offered links to information on "negative equity"; then someone quibbles that we "should" be talking about - specifically - the IRISH property market!

This "small island mentality" has increased to an alarming degree recently and frequently surfaces on AAM. As an anthropologist I can speculate that it's a cultural defence against accellerated change, a little earplug against the Celtic Tiger's roar. However I don't think it is constructive or an aid to people informing themselves of the realities of the contemporary world or contemporary financial developments. There are new and powerful forces in operation today, including the multinationals; the globalising ethos has swept away many more locally-based structures. Irish demographics and governmental policy, taxes, employment patterns etc. whilst important, operate in a broader context. The experience and perspective of the Irish abroad might be of constructive use to those who remain "on the island" in averting expensive misdirection.

"Negative equity" and house repossessions are painfully similar whether they occur in Tinaheely or Timbucktoo.
 
Think Global, act local baby

Would this explain why the property market in Limerick boomed in the late 80s and collapsed in the early 90s at the same time that the London market did ?

I think the correlation between the Irish markets and other ones is very weak. If you have any evidence to the contrary, please bring it to the table. Otherwise, you're just talking rubbish Marie.
 
Clarification

There might be a difference Diddums (ahem!) between articulating an informed opinion and pointing to a piece of investigative journalism. If you read my two posts on this thread you will see that nowhere do I indicate I am claiming or quoting authority. In fact, I don't know if the original poster paid 30K over the odds for a house, if s(he) is now in negative equity, if the Irish housing market is about to crash, if the Irish housing market is connected to anything else in the universe.......or not!

However not knowing (hence being in the same position as every other lay observer) does not make an attempt to join in discussion which might clarify or move towards some greater knowledge is not, therefore "rubbish" and I do not accept your pejorative dismissal (which incidentally adds nothing to the discussion and veers on "flaming").

Bye bye Diddums! ;rupert
 
Flippo said:
Bought a new house in west Dublin in a new housing estate in Dublin last year. The final house in the estate was sold two months ago.
The price of the surrounding houses has gone down by €30 grand. Has this happened to anyone else in Dublin???
Don't know why this has happened...estate is very nice and the neighbors feel very happy with the area also.

I think the houses were overvalued when purchased....I haven;t heard much about this kind of thing happening before.....or are people too afraid of mentioning in case word spreads???
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Hi,
I bought my house on Sept 07 in West Dublin for 785K and today I checked myhome.ie website and found that the price for the remaining houses like mine dropped 60 K. Did not think the house was overprice otherwise I had not bought it.
I am quite happy living here but I am really upset with the whole situation, Is there a way to claim this money back from the builder? In these cases, should the individuals with negative equity get a tax relief? Not to forget that the Revenue gets money in a transaction with a positive equity.

Any good idea would be highly appreciated.

Mick
 
when the house was bought the buyer made an informed choice to purchase at that price. i don't see why revenue or the tax payer should bail them out becuase they feel they have lost money. Its not practical, what if someone was to buy a house cheap and 'under priced', should they have to pay extra to revenue when the value goes up then?

No-one forces anyone to buy a house, if purchasers choose to pay inflated prices it's their own fault, harsh at it is.
 
I'm presuming from that purchase price that you were using equity you accrued from rising prices on another house to help finance the new one. You wouldn't have paid any tax on that gain if it was a PPR.
 
Hi Mick - in Sep 07 I bought shares on the ISE - today they are worth 60k less than I paid for them - didn't think the shares were overpriced when I bought them otherwise I wouldn't have bought in to them. I am quite happy with the companies I bought in to but I am really upset with the whole situation, Is there a way to claim this money back from the ISE? Should I get tax relief because I'm down on paper? Not to forget that the Revenue got stamp duty from me when I bought.
Any good idea would be highly appreciated. :rolleyes:
 
demoivre said:
Hi Mick - in Sep 07 I bought shares on the ISE - today they are worth 60k less than I paid for them - didn't think the shares were overpriced when I bought them otherwise I wouldn't have bought in to them. I am quite happy with the companies I bought in to but I am really upset with the whole situation, Is there a way to claim this money back from the ISE? Should I get tax relief because I'm down on paper? Not to forget that the Revenue got stamp duty from me when I bought.
Any good idea would be highly appreciated. :rolleyes:
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Sarcasm is the lowest form of wit.
 
Prices are overvalued by auctioneers therefore buyers should be very careful now not to pay very much over the odd for property because there is no way that they are going to get it back now.
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Two things, firstly as many people point out a property is worth what it sells for, and if anything auctioneers have been blasted in the past for putting too low a value in order to drive up interest, now your saying its the polar opposite. Secondly how can anyone say there is no way your going to get it back now, that just makes no sense. Markets go up and down, just cause its going down doesnt mean that the reverse wont happen.

I have been monitoring house prices in Ireland and found that after 1 to 2 years when a property has not sold they it is taken down to its proper value and I have seen that to be from 20 - 50k that is a lot of money. So bear in mind always that property is overvalue by that amount.
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After 1 or 2 years its time for a property to reduce value, but do you really think that this is the case with the majority of houses on the market. If that were the case there would be many of us out of work. Property can be over or under valued by any amount ther is no definitive answer on this subject.


With regards to Mick's post I'm presuming that he is pulling our legs. You are right?
 
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