Great Result dealing with A.I.B.

[Brendan Burgess]

I'm a little confused by your posts. Yourself and your wife are on €115,000 between you, you have 8 properties that (seemingly) are all rented out, in great locations in South Dublin (according to yourself) so should be covering or just below the mortgages outstanding given the rents being achieved in Dublin.

Hopefully this will be a lesson to A.I.B. - to work with their customers and stop using bullying tactics.

Just gone back over the thread.

AIB moved a tracker mortgage to interest only and you accuse them of bullying you!

 

[robert 200]

That was not my experience with AIB nor the vast majority of landlords in the Irish Property Owners Association - 4,000 fulltime landlords were forced to sell all their properties
over the last 3 years. That is one of the reasons for the current wave of homelessness.

I never missed a repayment in 25 years but when the crash came the rents halved - I just needed a little time for things to get back to normal.

In ANY business if a customer has an excellent track record you cut him a little slack if things get tight - Thats the real world.

AIB used a number of bullying tactics - threatening repossessing my home , tormenting me with phone calls , sending in receivers and increasing interest rates etc.etc.

It took 5 years of argument for them to cop on. I give them no marks for that and their part in the homeless situation.

 

[Brendan Burgess]

4,000 fulltime landlords were forced to sell all their properties
over the last 3 years. That is one of the reasons for the current wave of homelessness.

I see. And they had to knock down the houses after selling them?

Repossession does not increase the wave of homelessness.

Brendan

 

[Brendan Burgess]

AIB used a number of bullying tactics - threatening repossessing my home , tormenting me with phone calls , sending in receivers and increasing interest rates etc.etc.

I'm a little confused by your posts. Yourself and your wife are on €115,000 between you, you have 8 properties that (seemingly) are all rented out, in great locations in South Dublin (according to yourself) so should be covering or just below the mortgages outstanding given the rents being achieved in Dublin.

I have no idea if AIB was being unreasonable or if you were. A lot of investors who borrowed too much think that the bank should carry the can and extend their tracker mortgages indefinitely.

Given the number of properties you had, it would seem reasonable that they told you to sell most or all of them.

Brendan

 

[bren1986]

It all doesn't really add up, you never missed repayments in 25 years? You were still in negative equity? Surely most houses are paid off after 25 years of repayments or close to it.

You have tracker mortgages and rents not covering your repayments? I would assume it would have to have been very close or how would people on variable buy to lets been able to hold on because that difference of 2% is a big difference in monthly repayments.

 

[robert 200]

Brendan ,

Allow me to explain

I have a property in Rathmines in 8 units - studio apartments. 6 of the tenants receive rent allowance and their rent is €595 p.m.

If I had been ordered to sell this property by the bank - after the appropriate notice had been given to these 6 tenants they would most likely have become homeless for 2 reasons.

The first reason is because rent allowance tenants are not flavour of the month because of the limited allowance and some hungry landlords know they can squeeze extra rent from professionals.

The second reason is that these properties are being converted back into single private dwellings. This is also happening in Ranalagh , Rathgar , Clontarf and Fairview etc etc.

The shortage of rental accommodation is seriously contributing to the homeless crises.

That is why in my opening post I said myself and my 24 tenants now have security of tenure for the foreseeable future.

 

[robert 200]

Repossession does not increase the wave of homelessness.

 

[Brendan Burgess]

Hi Robert

Thanks for that.

As I have said, repossession does not increase the level of homelessness.

The stupid ban on bedsits has done so.

Brendan

 

[bren1986]

Thanks for explaining that part Robert but it doesn't explain it all, not that you have to it is your privacy.

But don't fool yourself thinking AIB care if they made 24 people homeless, If majority of banks could they would put people in arrears out on street. They only care about making money at the end of the day. And it is there lending in the boom that has this country in such a mess.

Also congratulations on your deal it was a hell of a good deal and you on a tracker.

 

[Cervelo]

That is why in my opening post I said myself and my 24 tenants now have security of tenure for the foreseeable future.

First of all congrats on get the bank to agree to your terms, I know from personal experieance that even with rock solid guaranteed securities they can be very shortsighted when dealing with indidividuals.
But I can't help but wonder about the "security of tenure" for you and your tenants when the interest only period ends and you have to start paying the capital portion of your loans ??

 

[bren1986]

I also assume you were in mortgage arrears and it was ongoing for 5 years, did they capatilize arrears and how much arrears did you occur over the period?

Maybe AIB played this smart and allow you to maintain it for the 5 years until property recovers and if you can't make full repayments afer the 5 years they will then make there move to minimize their loss.

Your repayments will be increased dramatically you will be paying interest and capital on a big mortgage and end of 5 years.

 

[dereko1969]

Now that you're in positive equity have you suggested to AIB that you increase your payments? Seems odd you're able to fit 24 tenants into 8 bedsits.

 

[Brendan Burgess]

Seems odd you're able to fit 24 tenants into 8 bedsits.

Let's make Robert the Minister for Housing.

Brendan

 

[robert 200]

Hi Ladies , did you read the details? i have 8 properties

I can now refinance if AIB try their bullying tactics again

I see the green eyed monster is alive and kicking ,

disappointed in our founder !!!!

 

[bren1986]

Hi Robert,

Dereko1969 is correct because above you said

---------------------

I have a property in Rathmines in 8 units - studio apartments. 6 of the tenants receive rent allowance and their rent is €595 p.m

That is why in my opening post I said myself and my 24 tenants now have security of tenure for the foreseeable future.

----------------

So basically you have 8 studio apartments with 24 tenants.

Studio apartments should only have 1 bed in them and you have 24 tenants?

Nothing you are saying adds up no harm bank wise or tenant wise.

 

[Brendan Burgess]

A.I.B. have 8 buy-to-lets and my family home as security. Assuming capital appreciation of
3% per annum I will be back in positive equity within this period.

My 24 tenants and myself are delighted with this outcome and the fact that we have security of
tenure for the foreseeable future.

On reading it again, Robert is quite clear that he has 8 separate properties.

I have a property in Rathmines in 8 units - studio apartments. 6 of the tenants receive rent allowance and their rent is €595 p.m.

This is just one of the 8. I think it was the coincidence that he has 8 properties and one of them is in 8 units that caused the misunderstanding.

Brendan

 

[bren1986]

I have to assume Robert is over 50 given he stated he never missed a mortgage repayments over 25 years etc..

Now if he does own 1 property with 8 studios we have to assume 8 studios cost in the region of 200k in the boom, then he also has another 7 properties let's say average 200k also. That is a substantial loan book.

So with 8 studios and 7 properties I'm just going to guess 2million given he hasn't given any details I'm speculating. Obviously he has a mortgage on all properties as if he was in positive AIB would have been calling in their money.

So he's currently paying 2million let's say

Montly repayments on 2mil interest only is 1,666

When he has to revert back to capital and interest let's assume rate is 1.5% as he has a tracker mortgage

Over 10years repayments = 18k monthly
Over 15years repayments = 12.5k
Over 20years repayments = 10k

I just also find it hard to believe you have 8 studio apartments and 7 properties (24 tenants) 6 tenants we know pay 595 each and AIB accept payments of 1666 monthly interest only and you are bound to be taking in let's assume 24x500euro each (average) tenant which is 12,000euro monthly.

AIB aren't fools to let you profit 10.5k rent monthly and only pay them 1666 for 5 years??? That means after you pay mortgage you profit 630,000euro over the 5 years less whatever tax.

See this is what happens when you don't give full details one has to speculate. And I think I'm being generous with my speculation because I think if you do own 8 studios and 7 properties your loan book is a lot higher.

 

[robert 200]

i am restricted by confidentiality agreement.

i just wanted AAM to know that
there are fair deals to be had if you are
patient and that AIB are finally making
intelligent commercial decisions now.

Hopefully they will restrict the forced sales
of Pre-1963 properties which was seriously
adding fuel to the homeless numbers.