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Isle Of Man


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if the isle of man loses it's offshore status it's toast.I have more than a passing interest and can confirm that prices are dropping big time.I know of a nice flat that was purchasedwithin the last year,effectively-index linked- at it's 1999 price.markets move at the margins first.Same as across.

sorry can't give details.

If the isle of man loses it's offshore status I agree - it is toast. Whilst there is certainly a risk of this happening - I think the risk of this happening in the near future is fairly low.

Just out of interest, how can you confirm that prices are dropping big time? Looking at the papers etc, and talking to people who are moving/looking to buy, this doesn't really seem to be the case. However my interest only really lies in the lower end of the market, and this is what I keep an eye on in all honesty...

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Last time I was living in IOM, I was at boarding school (KWC)

I did look at a health related job in the Island a few years a go but price of property was too high and nor good value.

Stayed in N Wales where the money goes a lot further

Sorry it's OT :P

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  • 1 month later...

Moving to IoM from Belfast next month. I have been over looking at properties and have come across a real mixed bag.

I am a first time buyer who is renting in Belfast for 450GBP/month in a 3 bed semi, with gardens and a garage. The rentals in IoM for something similar are 900-1200pcm.

This is partly why I want to buy in the sub-200k category. I saw a new (<5yr old) semi on the market for 185k. I was told by the EA to bid 175 to get the ball rolling. I did so and by the time I got a notice of bid rejection, somebody else had jumped in and bid the full asking price (on the same day!). I was gutted. I am now looking at a 2 bed cottage in the south for 185k, and the vendor will take 180k. I a m not sure how risky the market is, but I would rather pay 900 quid a month on mortgage (minus tax relief and minus 2 year 250pcm grant from my employer) than 700pcm on a flat. Am I right to do so?

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  • 1 month later...

Hi, Just wondering about this forum, I know it has been going for some time but does anybody know what has happened with house prices in the IOM since the begining of the year??

Has the island been shielded from the crash in the UK ar the rest of the world for that matter??

You comments would be appricated.

Regards,

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Yipeeeeee!!!

1.5% decline!!! The crash has started there.

Me and my wife nearly bought a place there a year ago, but as it coincided with the "credit crunch" but decided not to do it. Prices did go up a little after that, but I can easily see them falling a long way now!!!

With the financial sector there taking a big hit....I can only see doom and gloom for them!

Yipppeeeeeeeeeee!!

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I feel the isle of man is better placed to ride the storm in the short term at least given the fundamentals behind economy and government support for the lower end of the market. The Isle of Man bank has been advertising the fact it is still offering 100% mortgages, GDP per capita is growing at a greater rate than the UK. Just reading the local papers and estate agent publications there does not appear to be any sign of a slowdown as yet - I myself know many young people wanting to get on the property ladder without much worry. Having said that this only concerns the lower end of the market as mentioned before.

If the Isle of Man is not immune - when are we likely to see the effects of any slowdown - why the lag behind the UK?

Referring to the lower end of the market again - where people are most likely to racking up the debt (relative to income) - most people I know are trying to get on the housing ladder asap because of forthcoming payrises taking them over the threshold for government grants of up to 25k towards house purchases...And with banks such as the IOM bank, and others locally still offering high LTV mortgages - I cant see the let up in this. People just dont seem to be concerned about it over here.

Maybe I should pass around my copy of empire of debt once i have finished it - i noticed your a big fan. I am about half way through I cant believe how good it is. People do just go crazy during asset bubbles and no one even realised up until the point it blew up right in front of their eyes. Its unbelievable. I wish i had read that book upon release.

I know you mention the IOM going from safe haven to crash town in the 70s / 80's and maybe I am young and naive - but I wouldn't have thought we are in the same environment then as we are now? We have extremely low unemployment, well paid jobs and the financial sector still appears to be growing here - despite reported and rumoured job losses in the city. We are not wholly reliant on banking - other areas are growing quickly over here - the captive market, AIM listings, Software development, Shipping/Airline/Satelite registers... And that list appears to be growing.

And true, inflation is rising - the February budget on the IOM noted the creation of a new fiscal package to help those on low incomes, to help them cope with rising fuel, food costs etc. The point on rates, and Im wondering this general, not just re. the IOM - where are they headed - I realise inflaitonary pressures are more than likely going to restrict further cuts - but is the interbank market not starting to ease slightly? I remember reading the other day Abbey have reduced their mortgage rates too.

Finally, your point on the IOM media - what do you mean it isn't independent and they dont report bad news? I do see bad news fairly often, whether it be financial or otherwise.

Ownership of the papers, im sure is not manx - Johnson Press im fairly sure - do you mean literally the local reporters?

Anyway, thanks for your response and apologies for rambling on. Comments appreciated.

But how secure is the financial sector really?

Manx banks are popular due to the tax advantages compared to keeping your money on the mainland, however people are increasingly wondering if paying some tax might actually be a good insurance policy against the bank going bust, as you get to take advantage of the UK's guarantee scheme. We saw in the case of the Icelandic banks that the FSCS is much better at paying out than the Manx scheme.

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But how secure is the financial sector really?

Manx banks are popular due to the tax advantages compared to keeping your money on the mainland, however people are increasingly wondering if paying some tax might actually be a good insurance policy against the bank going bust, as you get to take advantage of the UK's guarantee scheme. We saw in the case of the Icelandic banks that the FSCS is much better at paying out than the Manx scheme.

Absolutely agreed. Manx offer no security for your money.

What i have come to realise that Manx house prices are dependent on retiree people wishing to move over there. Prices are expensive even for those who work in the financial sector. When this immigration stops ( and it may have already ) then I fear the island could really implode!

After all if poeple are worried about there money and security they aint going to leave it in the isle of man. No Money in banks of isle of man= No finance sector!

Still if there is a big crash....I will consider buying there maybe in about 10 years as it is a relaxed little island!

Edited by DONTDOITMAN
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Great site. I am in the lower end of the market. I keep hoping for a crash so i can get a better house. The only houses i can afford need lots of work. I am petrified of buying only for there to be a crash in a few months. Looking at the house price index by the RBS that don'tdoitman quoted i noticed that there has never been two consecutive quarters of negative growth so it will be interesting to see what the Dec figures are. i think i will go for it. :blink:

Edited by radders
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i think i will go for it. :blink:

I wouldn't if I was you. There is a long way to fall in the IOM. It has just started. When they have no immigration of people onto the island - prices will fall. Think about this.

How can the island survive, when house prices are going up and this is becuase of immigratio?.

How can the island survive when those workers moved to the island for a better quality of life can't buy a property?

How can the island survive when immigration stops as those in the UK can't sell/move and workers say that there isn't the quality of life.

Me and the Mrs nearly bought a property last year. 3 bed terraced in doublas for about £210,000 but decided to pull out becuase the "credit crunch" happened. We thought we would rent it out and then move across in a fews years for a better quality of life. In the end we are glad we didn't buy it as the rental wouldn't have covered the mortgage, and we have no debt so are free to move anywhere we want.

I also work in financial services so looks like there would be less jobs there.

All in all - I do think it is a nice little island, but expect property prices to fall by the same percentages as we see in the UK.

Radders - As for your comment about "lower end of the market". Does that mean you are eligible for the grant? This grant has also helped fuel property prices. Well this and the Stupid Estate agents on the island!

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  • 1 month later...

I've been following the thread on Manx house prices with interest. Prices over there still seem to be bucking the trend. Does anyone have any insight on the latest upbeat report (prices up 4% last year) - is this just spin? or will the low tax rates keep attracting rich emigrants and fueling house price inflation?

Phillipe.

From the IOM newspaper site:

Published Date:

02 January 2009

By ADRIAN DARBYSHIRE

HOUSE prices in the Island rose by 4 per cent over the year – but property transactions fell by a third.

The impact of the credit crunch on the Manx housing market became clear as leading estate agent Chrystals published its review of 2008.

In a turbulent year for the global economy, property values in the UK have plunged.

While the Island economy is not immune to the credit crunch and recession elsewhere, Chrystals says that prices in the residential market have seen stability, increasing by about 4 per cent over the year from an average of £281,000 to £292,000.

If the flats market is included, the all-property average would run at £281,000 – no change year on year.

Chrystals office manager Neil Taggart said: '2008 has been an unprecedented year for the global economy with speculation and uncertainty casting a cloud of caution over all business. It has been impossible to get away from talk of credit crunch, sub-prime collapse and economic chaos.

'Our average house price statistics should be observed in a positive manner for the Manx economy when compared with UK statistical surveys published by the Nationwide Building Society (down 13.9 per cent to £158,442) and Halifax (down 14.9 per cent to £163,605).

The UK Land Registry reported its average recorded house price decreasing by 10.1 per cent this year.'

Chrystals' sales statistics indicate that detached family houses (up 3 per cent), detached bungalows (up 7 per cent), semi-detached houses (up 1.8 per cent) and terraced houses (up 3.5 per cent) have seen 'modest but sustained price increases'.

Year-on-year sales saw the market for flats drop back considerably and prices fell.

'We consider that a lack of stock in the mid/upper price range has contributed greatly to this statistic. We are pleased to observe that the Department of Local Government and the Environment first-time buyer initiative has successfully allowed many to take the first step onto the property ladder,' said Mr Taggart.

But the number of transactions in all areas of the market slowed throughout the year.

'In some sectors transactions have fallen by as much as a third,' said Neil. 'This is of greatest concern moving into 2009. During December the Nationwide and Halifax both suspended their future predictions.'

But Mr Taggart said Chrystals had seen 'strong and consistent' demand from 'high net worth' individuals throughout the year.

The first quarter alone saw its offices securing property sales of £14m over five sales, including the highest value residential transaction by any agent.

Mr Taggart said: 'Some cooling of interest has occurred with uncertainty over the duration of the UK recession but we have continued to negotiate several substantial sales for clients leading into 2009.

We are optimistic that if government can maintain a dynamic tax strategy the Island will remain attractive in turbulent economic times.'

He concluded: 'We are confident that the historic but sustainable growth in values has forged strong property foundations for the Island.

'We look forward to the emergence of a market in reasonable balance, where existing home-owners can rest assured that their property retains its value in real terms, while those seeking to enter or move up the market have a realistic chance to do so.

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:rolleyes: i did buy a small 2 bedroom end terrace. I am going to live in it and not worry about house prices dropping. Its seems the longer i wait for the prices to drop the more i keep my life on hold. I got a tracker mortage and i am now on 2.05% and i have had fantastic deals from b&q for a new bathroom and kitchen. The house is already worth more than i paid for it! All in all i am glad i went for it. if the house prices drops, so what. i still have to live somewhere. i am happy about phillipe's comments though.

I've been following the thread on Manx house prices with interest. Prices over there still seem to be bucking the trend. Does anyone have any insight on the latest upbeat report (prices up 4% last year) - is this just spin? or will the low tax rates keep attracting rich emigrants and fueling house price inflation?

Phillipe.

From the IOM newspaper site:

Published Date:

02 January 2009

By ADRIAN DARBYSHIRE

HOUSE prices in the Island rose by 4 per cent over the year – but property transactions fell by a third.

The impact of the credit crunch on the Manx housing market became clear as leading estate agent Chrystals published its review of 2008.

In a turbulent year for the global economy, property values in the UK have plunged.

While the Island economy is not immune to the credit crunch and recession elsewhere, Chrystals says that prices in the residential market have seen stability, increasing by about 4 per cent over the year from an average of £281,000 to £292,000.

If the flats market is included, the all-property average would run at £281,000 – no change year on year.

Chrystals office manager Neil Taggart said: '2008 has been an unprecedented year for the global economy with speculation and uncertainty casting a cloud of caution over all business. It has been impossible to get away from talk of credit crunch, sub-prime collapse and economic chaos.

'Our average house price statistics should be observed in a positive manner for the Manx economy when compared with UK statistical surveys published by the Nationwide Building Society (down 13.9 per cent to £158,442) and Halifax (down 14.9 per cent to £163,605).

The UK Land Registry reported its average recorded house price decreasing by 10.1 per cent this year.'

Chrystals' sales statistics indicate that detached family houses (up 3 per cent), detached bungalows (up 7 per cent), semi-detached houses (up 1.8 per cent) and terraced houses (up 3.5 per cent) have seen 'modest but sustained price increases'.

Year-on-year sales saw the market for flats drop back considerably and prices fell.

'We consider that a lack of stock in the mid/upper price range has contributed greatly to this statistic. We are pleased to observe that the Department of Local Government and the Environment first-time buyer initiative has successfully allowed many to take the first step onto the property ladder,' said Mr Taggart.

But the number of transactions in all areas of the market slowed throughout the year.

'In some sectors transactions have fallen by as much as a third,' said Neil. 'This is of greatest concern moving into 2009. During December the Nationwide and Halifax both suspended their future predictions.'

But Mr Taggart said Chrystals had seen 'strong and consistent' demand from 'high net worth' individuals throughout the year.

The first quarter alone saw its offices securing property sales of £14m over five sales, including the highest value residential transaction by any agent.

Mr Taggart said: 'Some cooling of interest has occurred with uncertainty over the duration of the UK recession but we have continued to negotiate several substantial sales for clients leading into 2009.

We are optimistic that if government can maintain a dynamic tax strategy the Island will remain attractive in turbulent economic times.'

He concluded: 'We are confident that the historic but sustainable growth in values has forged strong property foundations for the Island.

'We look forward to the emergence of a market in reasonable balance, where existing home-owners can rest assured that their property retains its value in real terms, while those seeking to enter or move up the market have a realistic chance to do so.

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'radders'

" I am happy about phillipe's comments though."

Not really my comments - straight from the IOM newspapers site. It does seem to be one of the last holdouts though. On Manx Radio today they had another piece re: continuing strong property market.

"First rung even harder to reach"

"14/01/2009 10:01:13

The increasing squeeze on first time property buyers has been spelled out by a leading Manx estate agent.

Experts were asked to give presentations to the Junior Chamber of Commerce this week to talk about the state of the market in the Isle of Man.

Lisa Quayle of Quayle’s Estate Agents said things had been difficult enough for first-time buyers in recent years.

But she says the current economic downturn is making life even harder for those trying to get on the property ladder."

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The Manx housing market is very different to the UK housing market.

I have friends and family that live all over the Island, most have them have bought in the past couple of years.

Prices have increased but not at the acceleration as the UK prices, that said they are not cheap. The Isle of Man is a desirable place to live (Onchan, Sulby, Ballabeg) to name just a few of my best parts of the Island.

The market isnt so bad first time buyers, because in the Isle of Man, there was no 110% mortgages available. The banks have always wanted a large deposit, thats why the IOM Government brought in schemes to help first time buyers get on the property.

Transactions on the Isle of man are also much fewer, we less people dropping out and people generally staying the same house for an average of 8 years.

The availability of credit has simply brought the UK market to similar conditions as on the island. Not the other way around.

I expect that prices on the IOM will stagnate with very small fluctuations for next 5 years and then start to rise again.

To be clear I do think the Isle of Man will not suffer a house price crash unlike the UK, were all ready in one.

The reason for this is there isnt so many transactions and house are generally very expensive. The people generally who are making purchases generally are the financially better off.

If the IOM slumps 5% this year I will be surprised, but also note the Isle of Man is a dependancy of the UK, but the dynamics of the island are very different. The same way the dynamics of London are different to a lot of the country.

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"The Manx housing market is very different to the UK housing market."Manx Property Market Considered Boyant

More discussion on the IOM newspapers website today - a unique market definitely - also a mixed bag of comments in response to same article - some flat out cynical

Manx property market described as 'buoyant'

http://www.iomtoday.co.im/news

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HSBC et al will still be carrying on business as usual.The IOM is a nation state.As long as they hold firm,more moeny will go there to escape the tax rises coming.

Ealier in the thread I stated that I bought somewhere there ealrier this year at way under it's 2003 price.I would wait on all IOM purchases unless it's something you really want as in my case.

When interest rates are now as near as dammit 0%, there isn't that much of a tax bill to save. If you want to earn a half decent interest rate now, you have to put your money in a slightly dodgy bank, and if you do that, you want a decent deposit protection scheme backing it up. The Isle of Mann doesn't have one that's worth talking about, so paying a bit of tax to the British government for their deposit protection scheme is money well spent.

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Obviously a struggle for people to live in such a high-priced area - it's residents are some of the most indebted in Britain.Shocking figures illustrate level of debt in Isle of Man

CUT IT OUT: A total of 181 people who contacted the Isle of Man Office of Fair Trading owed about £20,000 each – mostly on store and credit cards and loans

29 January 2009

By JACKIE TURLEY

MORE than £3.6 million was owed by debtors who contacted the Isle of Man Office of Fair Trading for advice last year.

A total of 181 people owed about £20,000 each – mostly on store and credit cards and loans.

And OFT staff are bracing themselves to deal with more problems as the credit crunch continues to bite, with the threat of redundancy and unemployment.

Shocking figures reveal how the economic crisis is affecting people on an individual basis.

A total of 50 people contacted the OFT for money advice from October to December 2008, 16 more than in the same period the previous year.

The biggest trigger (45 per cent) was bad budgeting, with other factors including bereavement, divorce, gambling and illness.

Of the people who contacted the OFT, there was an almost even split between men and women.

Nearly a third of people were aged 31-40 and about 60 per cent had no children.

Store and credit cards accounted for 45 per cent of debt, bank loans made up 20 per cent and 13 per cent was from personal loans.

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