BelfastVI Posted June 27, 2013 Share Posted June 27, 2013 Anyone read the article on Clanmill Housing Association. Leveraging up on debt at 4.5% to build houses and rent these back to the government through housing benefit payments. The snake eats its tail. This small country is seriously f***ed. HA's have plenty of equity and can borrow against it. It is one of the reasons the HE is been unwound.It is using private finance from banks and pension funds to build social housing rather than (or wilt less) taxpayers money. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted June 27, 2013 Share Posted June 27, 2013 (edited) HA's have plenty of equity and can borrow against it. It is one of the reasons the HE is been unwound.It is using private finance from banks and pension funds to build social housing rater than (or wilt less) taxpayers money. Of course they have equity. They receive HA grants upto 60% of the capital from DSD. So 60% paid for by the tax payer, 40% from loans serviced through the payments from the tax payer. The tax payer in this case is renting the banks money at 4.5% and putting down a 60% deposit. It's PPI but at a really shit rate. Edited June 28, 2013 by 2buyornot2buy Quote Link to comment Share on other sites More sharing options...
Shotoflight Posted June 28, 2013 Share Posted June 28, 2013 Exemplar! http://www.bbc.co.uk/news/business-23090292 Northern Ireland was the worst performer, with prices down 2.1% in the quarter from a year earlier. Quote Link to comment Share on other sites More sharing options...
BelfastVI Posted June 28, 2013 Share Posted June 28, 2013 (edited) Exemplar! http://www.bbc.co.uk/news/business-23090292 Northern Ireland was the worst performer, with prices down 2.1% in the quarter from a year earlier. That's an annual drop of 2.5%, which is quite an improvement from the double digest percentage drops we were hearing last year. Over the last 3 quarters it has shown an increase which is encouraging. FTB'er prices up 11% in the last 12 months, which I don't like to see and imagine is a blip. Edited June 28, 2013 by BelfastVI Quote Link to comment Share on other sites More sharing options...
Shotoflight Posted June 28, 2013 Share Posted June 28, 2013 (edited) That's an annual drop of 2.5%, which is quite an improvement from the double digest percentage drops we were hearing last year. Over the last 3 quarters it has shown an increase which is encouraging. FTB'er prices up 11% in the last 12 months, which I don't like to see and imagine is a blip. 2.7% down over the quarter £108k average selling price http://www.nationwide.co.uk/NR/rdonlyres/2AF8DF0E-9F96-45EE-B756-EA3B4866FCF8/0/Q2_2013.pdf Biggest house price drop in UK for Northern Ireland http://www.newsletter.co.uk/news/business/biggest-house-price-drop-in-uk-for-northern-ireland-1-5232447 Edited June 29, 2013 by Shotoflight Quote Link to comment Share on other sites More sharing options...
BelfastVI Posted July 1, 2013 Share Posted July 1, 2013 (edited) 2.7% down over the quarter £108k average selling price http://www.nationwide.co.uk/NR/rdonlyres/2AF8DF0E-9F96-45EE-B756-EA3B4866FCF8/0/Q2_2013.pdf Biggest house price drop in UK for Northern Ireland http://www.newsletter.co.uk/news/business/biggest-house-price-drop-in-uk-for-northern-ireland-1-5232447 Going by the figures it appears to be a 0.5% drop in the quarter after a 4% rise the previous. q4 2012 £104,282 Q1 2013 £108,610 Q2 2013 £108,166 Edited July 1, 2013 by BelfastVI Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted July 1, 2013 Share Posted July 1, 2013 Going by the figures it appears to be a 0.5% drop in the quarter after a 4% rise the previous. q4 2012 £104,282 Q1 2013 £108,610 Q2 2013 £108,166 Seasonal adjustment working the other way for a change. Quote Link to comment Share on other sites More sharing options...
Shotoflight Posted July 2, 2013 Share Posted July 2, 2013 BBC 3 - should pop up on IPlayer 8.00 Cherry Healey's Property Virgins Gillian in ('a nice part of') Belfast bought a 3 bed apartment (duplex?) 4 yrs ago at age 24 for almost £250,000 - complete with "ladycave" dressing room. Thinks it might be worth £200,000 now. Valuer said ask £130,000 and hope for £120,000 - Gillian not happy, unsurprisingly. about 20 mins in. Also 3 lads renting and loving it @ £300pm each. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted July 2, 2013 Share Posted July 2, 2013 BBC 3 - should pop up on IPlayer 8.00 Cherry Healey's Property Virgins Gillian in ('a nice part of') Belfast bought a 3 bed apartment (duplex?) 4 yrs ago at age 24 for almost £250,000 - complete with "ladycave" dressing room. Thinks it might be worth £200,000 now. Valuer said ask £130,000 and hope for £120,000 - Gillian not happy, unsurprisingly. about 20 mins in. Also 3 lads renting and loving it @ £300pm each. What does Gillian do I wonder, to be able take on a quarter of a million pounds of debt at 24? Quote Link to comment Share on other sites More sharing options...
Shotoflight Posted July 2, 2013 Share Posted July 2, 2013 What does Gillian do I wonder, to be able take on a quarter of a million pounds of debt at 24? Just walks into a bank????? Quote Link to comment Share on other sites More sharing options...
yadayada Posted July 3, 2013 Share Posted July 3, 2013 What does Gillian do I wonder, to be able take on a quarter of a million pounds of debt at 24? Inherits money Quote Link to comment Share on other sites More sharing options...
nornironsi Posted July 3, 2013 Share Posted July 3, 2013 Ouch that is rough, I am in negative equity myself but am busy overpaying my mortgage like crazy to get myself out of it. Though the thought of having 70k negative equity is pretty horrendous, mine is nowhere near that thankfully and within the next two years I should be ok again. I have a friend of mine who is in a terrible situation also, bought a house in West Belfast for £180k, probably worth around 80-90k now at most. The country must be full of similar stories. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted July 3, 2013 Share Posted July 3, 2013 I know both those apartment blocks in the programme. Gillian will be lucky to get 120. She's about 50 meters from the donegal road. Real crime hot spot where she's at. Quote Link to comment Share on other sites More sharing options...
Shotoflight Posted July 4, 2013 Share Posted July 4, 2013 Collapsed developer's road bond used to finish estate http://www.belfasttelegraph.co.uk/business/business-news/collapsed-developers-road-bond-used-to-finish-estate-29393769.html WORK on a housing estate in Co Antrim is to be finished by a government department using a road bond after the developer went bust. Although the houses in the Lindara estate in Larne are mostly occupied, the roads, footpaths and utilities were not finished after house builder Eassda went into administration in 2009. Now the Department for Regional Development has announced it will use the road bond put up by the developer to finish the work through Roads Service and NI Water. At £500,000, it's understood to be the biggest call on a road bond by Roads Service. Regional Development Minister Danny Kennedy said: "Following the unfortunate financial collapse of the developer, funding to complete the utilities in Lindara will be entirely drawn from the developer's road bond. "The bond is a vital requirement within a development contract and is included to safeguard the public purse. "In this particular case the residents in Lindara will directly benefit. Over the coming months they will see Roads Service and NI Water complete the very significant amount of work required in the estate. "The entire scheme, in three separate phases, should be completed towards the end of November," he added. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted July 4, 2013 Share Posted July 4, 2013 Inherits money BoMaD maybe fronting the deposit? I will have to watch the programme on iPlayer and will make no apologies for any Schadenfreude that I might feel. Quote Link to comment Share on other sites More sharing options...
nornironsi Posted July 4, 2013 Share Posted July 4, 2013 BoMaD maybe fronting the deposit? I will have to watch the programme on iPlayer and will make no apologies for any Schadenfreude that I might feel. Not sure why anybody would experience any Schadenfreude feelings from watching it tbh, there are thousands of normal people who have had their lives made significantly more difficult because of what has happened here, other's have had their lives destroyed completely. Not something to be feeling smug about. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted July 4, 2013 Share Posted July 4, 2013 Not sure why anybody would experience any Schadenfreude feelings from watching it tbh, there are thousands of normal people who have had their lives made significantly more difficult because of what has happened here, other's have had their lives destroyed completely. Not something to be feeling smug about. Adults who borrow large amounts of money should do their research before doing so, instead of blindly signing on the dotted line for hundreds of thousands of pounds worth of debt secured against the asset (house) for which they are borrowing to buy. I could have entered the market in 2006/7 but took one look at prices with the resulting level of debt I'd be putting myself in and said 'no way'. Meanwhile, loads of people with pound signs in their eyes were happily playing the HPI game despite placing themselves in enormous financial jeopardy. Their stupidity and willingness to borrow silly sums to 'invest' in property was (along with irresponsible bank lending) what created the disastrous bubble that disadvantaged everyone looking to own a roof over their heads. I make no apologies for any pleasure I might take from particularly egregious examples of this unwinding. People need to understand the concept of 'personal responsibility' once they are of age. If they don't do their sums and due diligence, then 'tough titty'. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted July 4, 2013 Share Posted July 4, 2013 The "cute hoors" get their comeuppance. Quote Link to comment Share on other sites More sharing options...
nornironsi Posted July 4, 2013 Share Posted July 4, 2013 You realise all this comes across as some sort of payback towards people who have called you names and laughed at you in the past. Surely we are beyond that sort of playground stuff? Real people, young families like my friend are finding themselves in a horrendous financial situation which is having a terrible affect on their wellbeing and causing them a lot of stress. I appreciate that people need to take responsibility for getting themselves in that situation in the first place - I am doing just that myself by actively spending all my spare cash and making sacrifices to overpay my way out of negative equity. That doesn't stop me emphasising with people in a worse situation than myself, even if you know they could have avoided it. Not everybody is financially aware unfortunately, I really think it should be taught from an early age to be more careful and plan finances for life. Some of the people affected have been misinformed, have had bad luck with the timing or have just simply jumped in before looking. A lot of these people have young families and it is devastating. Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted July 4, 2013 Share Posted July 4, 2013 Real people, young families like my friend are finding themselves in a horrendous financial situation which is having a terrible affect on their wellbeing and causing them a lot of stress. I appreciate that people need to take responsibility for getting themselves in that situation in the first place - I am doing just that myself by actively spending all my spare cash and making sacrifices to overpay my way out of negative equity. That doesn't stop me emphasising with people in a worse situation than myself, even if you know they could have avoided it. Not everybody is financially aware unfortunately, I really think it should be taught from an early age to be more careful and plan finances for life. Some of the people affected have been misinformed, have had bad luck with the timing or have just simply jumped in before looking. A lot of these people have young families and it is devastating. Firstly, if you had (or were planning to have) a young family then it's even more incumbent upon the borrower to consider all the risks involved in borrowing a huge sum of money to buy into a grossly over-inflated housing market. Secondly, people seemed to be happy to pay the prices asked, at the time. If they really were simply looking for a roof over their head then what is their issue that prices later fall? Market prices of assets can go up or down over time, that's a simple fact that everyone should understand. If anything, the resulting crash has benefited those who had already bought by keeping interest rates on their debt (which they willingly took on) much lower than they otherwise should have been for the last five years or so. They should be happy to get such a handout on their borrowing. If they 'just wanted a house to live in', well then they still have that and they are paying less to service the debt. And personally speaking, the Schadenfreude is experienced from seeing the real idiots who thought that they couldn't lose finding themselves facing reality. I haven't seen the programme yet so I don't know if it comprises of these sorts of stories or if there are genuine 'hard luck' stories in there too. Even then, the concept of 'personal responsibility' stands for all concerned. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted July 4, 2013 Share Posted July 4, 2013 You realise all this comes across as some sort of payback towards people who have called you names and laughed at you in the past. Surely we are beyond that sort of playground stuff? Real people, young families like my friend are finding themselves in a horrendous financial situation which is having a terrible affect on their wellbeing and causing them a lot of stress. I appreciate that people need to take responsibility for getting themselves in that situation in the first place - I am doing just that myself by actively spending all my spare cash and making sacrifices to overpay my way out of negative equity. That doesn't stop me emphasising with people in a worse situation than myself, even if you know they could have avoided it. Not everybody is financially aware unfortunately, I really think it should be taught from an early age to be more careful and plan finances for life. Some of the people affected have been misinformed, have had bad luck with the timing or have just simply jumped in before looking. A lot of these people have young families and it is devastating. You have more than one house don't you? You have several? Would you consider yourself to be in the business of house letting? Quote Link to comment Share on other sites More sharing options...
nornironsi Posted July 4, 2013 Share Posted July 4, 2013 We own one house, we pay mortgage's on two more yes. The two houses we have mortgages on were both bought individually by my now wife and myself before we were married. The house we own was payed for by an inheritance. Currently we have my wife's sister living in the house we own because she needs somewhere to stay in Belfast. The other house which my wife has a mortgage for is currently empty and due for refurbishment, possibly to sell on but we haven't decided what to do yet. If you are trying to suggest that my own situation somehow changes or lessens me feeling empathy for people less fortunate than myself you are mistaken, not sure what relevance you are trying to bring up by looking into my own background - which in itself is a bit worrying. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted July 4, 2013 Share Posted July 4, 2013 http://www.housepricecrash.co.uk/forum/index.php?showtopic=187621&view=findpost&p=909257904 Thanks Willie. Do I feel sorry for you and your negative equity? No not really. Do I feel sorry for a young naive couple who bought in 2007, I can sympathise, a little. You operate a business. Just like Tesco. I can understand your own person feelings towards negative equity based on your own poor business decision. But your situation isn't the same as the young couple above. Quote Link to comment Share on other sites More sharing options...
nornironsi Posted July 4, 2013 Share Posted July 4, 2013 Thanks Willie. Do I feel sorry for you and your negative equity? No not really. Do I feel sorry for a young naive couple who bought in 2007, I can sympathise, a little. You operate a business. Just like Tesco. I can understand your own person feelings towards negative equity based on your own poor business decision. But your situation isn't the same as the young couple above. Not sure where you got the idea I am looking any sympathy for my own situation, didn't ask or expect any - if you read what I was saying it was due to a friend of mine suffering with a young family. I'm very lucky in that I overpay out of the situation which few are able to, also we have no kids yet. My situation will be resolved within 2 years, my friends may not get resolved for maybe 15-20 years. Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted July 4, 2013 Share Posted July 4, 2013 (edited) Not sure where you got the idea I am looking any sympathy for my own situation, didn't ask or expect any - if you read what I was saying it was due to a friend of mine suffering with a young family. I'm very lucky in that I overpay out of the situation which few are able to, also we have no kids yet. My situation will be resolved within 2 years, my friends may not get resolved for maybe 15-20 years. Is your friend not able to overpay? I would have thought with interest rates at 0.5% they would be on an attractive rate? Edited July 4, 2013 by 2buyornot2buy Quote Link to comment Share on other sites More sharing options...
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