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When banks foreclose on mortgages in default,house prices to be hit hard?


patslatt

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See House Prices Are Nowhere Near A Bottom Says Analyst | Daily Ticker - Yahoo! Finance

This housing analyst argues that in many parts of the US such as New York where banks have delayed on foreclosing,house prices have yet to be hit hard. In states where foreclosures have been common,prices have fallen steeply. The root cause of price declines is the greatest financial crisis ever,even greater than the one in the late 1920s that contributed to the Great Depression.Are there comparisons to be made with Ireland's housing?

House prices in Ireland were depressed by the massive overhang of Celtic Tiger housing inventory. But there is shadow inventory too: potential sellers are unrealistically hoping for price recovery and about 20% of mortgages are in arrears.Irish banks are only beginning to foreclose on houses and a tsunami of foreclosures could be under way. That could depress prices severely as mortgage financing is scarce.

To support prices,the government will probably extend the tax break on capital gains on buy to lets beyond the year end. But if it doesn't,the residence permit given to non-EU foreigners who buy an expensive house could be the only barrier to another round of price declines.
 


EUrJokingMeRight

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The residence permit for non EU nationals who 'buy' a house is total scumbaggery by the government.
 

patslatt

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Yeah but prices in Dublin are increasing, in spite of all the negative news.
That could be due to rushed buying for the buy to let tax break which expires at year end.If so,this buying is borrowing from buying in future years and could lead to depressed prices in January.
 

im axeled

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The residence permit for non EU nationals who 'buy' a house is total scumbaggery by the government.
but are not spain now trying to get in on this act, this gov and the last has sold out my country, as well as its citizens, it has transported it future, (ie its educated young workforce), so a few houses will not make any difference, they have a few juicey plums left, which will be placed on the block, most likely unknown to us, aka ray bourke and what was our oil reserves.
 

captainwillard

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Yeah but prices in Dublin are increasing, in spite of all the negative news.[/Q
That's based on what , hearsay or reputable independent sources like daft.ie ???????????????

No that is based on property database. Prices are hardening in mid range South Dublin. I know it is painful but it is happening. who knows? It is probably temporary phenomenon.
 

onlyasking

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See House Prices Are Nowhere Near A Bottom Says Analyst | Daily Ticker - Yahoo! Finance

This housing analyst argues that in many parts of the US such as New York where banks have delayed on foreclosing,house prices have yet to be hit hard. In states where foreclosures have been common,prices have fallen steeply. The root cause of price declines is the greatest financial crisis ever,even greater than the one in the late 1920s that contributed to the Great Depression.Are there comparisons to be made with Ireland's housing?

House prices in Ireland were depressed by the massive overhang of Celtic Tiger housing inventory. But there is shadow inventory too: potential sellers are unrealistically hoping for price recovery and about 20% of mortgages are in arrears.Irish banks are only beginning to foreclose on houses and a tsunami of foreclosures could be under way. That could depress prices severely as mortgage financing is scarce.

To support prices,the government will probably extend the tax break on capital gains on buy to lets beyond the year end. But if it doesn't,the residence permit given to non-EU foreigners who buy an expensive house could be the only barrier to another round of price declines.
Hey, I've an idea: let's slash the pay of a sixth of the workforce overnight. You know the ones Pat. That'll do the trick.
 

Furze

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Spirit Of Newgrange

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only when NAMA has offloaded all its properties will we get a true value for irish properties, lots of ghost estates to sell for buttons, lots of empty properties around our cities too
 

Crazy horse 6

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Prices are still way way over the top. A friend of ours lives in a part council owned estate in Goatstown and had their small two bed priced recently to buy off the council. They wanted 220k for it. Utter madness. The greed is still alive and well out there.
 

Davidoff

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That could be due to rushed buying for the buy to let tax break which expires at year end.If so,this buying is borrowing from buying in future years and could lead to depressed prices in January.
That will be a big test, to see if prices hold up after the tax break expires.
 

hammer

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I have no idea why people aren`t running out to buy houses :)

Might be something to do with variable rates going up .5% every 2/3 months.

Stress tested against 6%

Bank of Ireland and AIB will be back in profit within 2 years. Someone has to pay.
 

Taxi Driver

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Irish banks are only beginning to foreclose on houses and a tsunami of foreclosures could be under way.
There is no evidence that banks are foreclosing at all. The number of foreclosures is incredibly low. There were 600 foreclosures last year and two-thirds of them were voluntary. The 200 repossessions were mainly done by subprime lenders such as Start. The main banks are not repossessing and there is no evidence that they will. "Interest only" seems to be the best they can come up with the deal with the mortgage crisis and that is pretty weak.
 

hammer

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Some buy to let investors are cleaning up.

Not paying mortgages or service charge.

Collecting the rent though :)

Banks are way too slow to act.
 

Taxi Driver

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only when NAMA has offloaded all its properties will we get a true value for irish properties, lots of ghost estates to sell for buttons, lots of empty properties around our cities too
One

NAMA's residential portfolio consists of 10,000 houses and apartments, predominantly located in Dublin, Cork, Limerick and Galway
Two

In the past two years, we have secured tenants for 4,000 previously unoccupied apartments and the annual rent roll across our residential portfolio is of the order of €100 million.

We are at a very advanced stage in terms of transferring residential units, through our debtors, receivers and directly, to the State for social housing provision under the Social Housing Leasing Initiative. Demand has already been confirmed by approved housing bodies for over 1,200 houses and apartments from the 2,000 units identified by NAMA last December as being available and potentially suitable for social housing provision. In June of this year, we identified further units bringing the total identified to nearly 3,800. These additional units are now being assessed by the housing bodies.
With 4,000 rented and 3,800 identified for social housing NAMA doesn't have much left relative to the overall market.
 

hammer

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Sooner NAMA make their mortgage finance available to investors the better.

Property sitting idle is no use to anyone.
 

Telemachus

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The residence permit for non EU nationals who 'buy' a house is total scumbaggery by the government.
Wow i didnt know there was such a thing. Passports for money essentially.
 

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