Will anything ever be done about neg equity??

[Protocol]

Not getting the 350k back is not negative equity.

Negative equity refers to when the mortgage balance is > house price.

Say the 350k 3-bed in Ballyfermot falls to 175k.

Once your mortgage balance is below 175k you are out of negative equity and back to positive equity.

You've lost 175k on an asset, yes, but you are not in negative equity.

 

[Protocol]

I bought in 2005 and I have lost 100k on the house purchase.

But I was never in negative equity.

 

[terrontress]

I bought in 2005 and I have lost 100k on the house purchase.

But I was never in negative equity.

OK, fair enough.

Give it time, your equity will gradually recover over time.

I took that to mean the value of the home will recover to the value of the loan rather than the value of the loan dropping to the value of the home.

 

[Alwyn]

Houses in 'old' Ballyfermot have sold for less than 80k. Something the banks or auctioneers don't want you to know.

 

[terrontress]

I see them on myhome for less than 90k so I suppose the selling price will be somewhat less than that.

It's a nightmare.

Does anyone know how much those places went for in the peak of the boom?

If I look at the loan on my home compared to myhome there is a €100k difference but I am sure that I would never get the full amyhome asking price if I were to sell.

Something is only worth what someone is prepared to pay. I can't ever see things going back to where they were. Interest only mortgages are only delaying the inevitable.

 

[Alwyn]

Does anyone know how much those places went for in the peak of the boom?

You can knock around 50k off the asking price, that will give you an indicator of what these houses are fetching now.

In the peak they fetched in and around 270k right up to 400k. Massive negative Equity in that area. Though 270k back then would probably have gotten you a house that needed upgrading hence large top up loans on top of the main home loan.

A lot of people bought in this area to avoid moving to the commuter towns. There was also talk of a luas line etc., this of course amounted to nothing.

 

[Toto123]

Is the obvious answer not to rent out your current house and rent another in a place you like.

Then wait and see what the fall out will be with regards govt/ bank policy on negative equity.

That’s what we are doing.

Definitely is the done thing. I personally don't think anything will be done about negative equity for people who can afford to pay their mortgage.
Live in a 2-bed apartment myself that my now husband bought before we met. Will only move now in the foreseeable future if we absolutely have to (e.g. if we find out we are expecting triplets ), but if we do, we'll rent.
I've actually replaced a lot of the furniture that himself bought with space saving stuff from ikea, so that's made a big difference in terms of spaciousness of the place