Homeowner in Iceland demolishes his house

I wonder how long it will be before we see this happening in Ireland. That is if it hasn’t happened already.

rte.ie/news/2009/0619/9news_ … 9,null,230

Poor bugger, but a pointless thing to do.

If that happens in Ireland, they should charge people with criminal damage.

It’s one thing for people to flee the country leaving massive debts, but it’s another, much worse thing to destroy something out of spite simply because you can no longer afford it.

I have no sympathy for such a person. He wasn’t doing it for the other people in debt in Iceland, he was doing it for himself. He isn’t helping anything or anyone, he’s only making it worse for the already hard pressed tax payers of iceland.

I might have sympathy for someone who bought a less fancy car, but a beamer?

By the by, how is it possible that the debts on the house jumped overnight from €250k to €450k? I can see how the debts in Islandic Krona jumped by that much, but why would the euro value of the debts increase that much?

Probably a euro loan paid in Islandic Krona, just not reported as such!

whats that old joke… one letter and 6 months

I suspect our history will shape events and our treatment of the banksters here… As soon as a critical mass have lost everything.

He is a frustrated home owner who, on the face of it I would have some sympathy for.Who has resorted to vandalism which, I have no sympathy for. A mortgage with an FX risk (which is what this appears to be) is very risky -forget about interest rate fluctuations, they would pale into insiginificance compared to currency fluctuations over the life of the mortgage. XX Very unwise on the part of the borrower and the lender. If you asked the bank for a loan of a few hundred thousand to gamble on the fx market would they give it to you? No they would not. This effectively amounts to the same thing

I have seen this type of sentiment expressed far too often on this site. Sometimes it is justified (when people have genuinely expensive cars and are moaning about how they can’t make ends meet) and sometimes it’s way off the mark, which is the case here -typical Irish begrudgery. ’ That flash Harry in his fancy car thinks his piss is port wine serves him right’.
For the record that particular model was produced from '91 to '99 which makes the car at least 10 years old (and a maximum of 18 years old). There have been three model replacements in the interim. Judging from the footage it is not an M3 or anything expensive or exotic like that, so we have a run of the mill 3 series BMW saloon which is at least 10 years old. Maximum value ~€4k. Hardly extravagant.

The video on the rte website doesn’t work on my computer, but we don’t know how much the car was worth, or more importantly how much he paid for it when he borrowed to buy it. Presumably if he had borrowed €4k for it and could sell it for €4k he wouldn’t have destroyed it, no? If he bought it 6 years ago he could have spent tens of thousands on it, with similar cars being a fraction of that price.

No matter what model, BMWs are luxury cars that cost more than cheaper equivalents. Even in terms of running costs, a BMW will cost more in fuel, repairs and insurance than a lot of other cars. The point is that while someone might have had to buy a basic car for work, no one has to buy a BMW. While I could have sympathy for someone who had no other option but to borrow to buy a car and then borrowed sensibly, someone who borrows to buy a luxury should at least recognise it as such and, if it transpires that they can’t afford it, they should have the decency to say “Ah well, at least someone else can get this luxury now”. But instead this guy thinks that if he can’t have this beamer then no one can. Surely the real begurdgery here is Icelandic and not Irish (note that I am not saying that many Icelanders are guilty of begrudgery, I am only pointing out that the man in the story would appear to be more of a begrudger than I)?

For what its worth, I don’t think such comments would be justified in the context of people who bought flash cars and are now struggling to make ends meet as you suggest. I have sympathy for the predicament of all people who fall on hard times. But those people will sell their flash car to try to repay their debts, not destroy it out of spite or to make a stand or whatever.

According to the report, in Iceland demolishing a house without permission carries a possible 6 year jail term, so he may yet be prosecuted and jailed.

You are speculating.He also could have bought it last week for €3k. I am dealing in the here and now and stating it’s maximum value not what it could have cost x many years ago.

Not necessarily. and I don’t think you can necessarily apply a logical though process to a man who has just demolished his own house. He is obviously no thinking straight and out for revenge.

The most significant cost of motoring (for ordinary cars) is not any of the one ones you mention above. It is depreciation.
It makes a whole lot more financial sense (or a least it did pre-recession and before the collapse of the car market). To buy a slowly depreciating ‘desirable/premium’ car and accept the higher running costs, than to buy a run of the mill ford for example- which will have lower running costs but rapid vertical depreciation.
They are at least simply just two different approachs to spending money.
The reality is that a car ‘of any kind’ is a luxury -very few people actually need one. Once you make the transition into car ownership it is a constant barrage of expenses -You may as well be hung for a sleep as lamb IMO. While you are incurring all those expenses why not buy something you want -as opposed to something you need?
While he was financially stable was the guy not reasonably entitled to spend his money on whatever ‘luxuries’ (and I use the term loosely) he wanted without judgement. Isn’t that what we all work for? -luxuries.
I mean if you were happy with basic food, shelter, clothing you could just go on the dole.
It wouldn’t hatter to me if it was a Rolls Royce on his drive way. If it’s only worth ~€4k then it’s highly insignificant in the grand scheme of things for his financial mess.

So no he owes the bank the full 450k rather than 450k - sale price of house.

Well done that man.

Maybe he couldn’t get a buyer for his car or his house. There’s a glut of both here so presumably worse there.
He has probably tried everything he could and who wouldn’t. Maybe after he tried everything he got desperate, depressed, felt all his efforts to ‘fix’ his situation were pointless. I don’t know. I don’t know his whole story. The banks are on social welfare here, while people are told to pay their debts and do the honourable thing for the common good. It may have been a misguided way of protesting but at least he protested - and it got international headlines.

you talking 4k local to Ireland or to Iceland?

I was quoting an Irish price (complete with it’s high VRT and VAT element, making Ireland one of the most expensive places to buy a car). That said, the cost of living is quite high in Iceland, I’d expect there would not be too much difference however -i’m not familiar with the car market in Iceland!

I think the same law applies in Ireland. If anyone started trying the same trick here FF would go to town on them :wink:

6 years of accomodation paid for by the state.
Handy if you’ve just lost your house.

-Rd