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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 12:41 pm 
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buddygunz wrote:
The other apartment owner gets nothing and carries their 200K of negative equity and mortgage repayments.


And quite likely contributes to the inevitable bail out of the lending institution who have been instructed to write off the debt.


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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 1:32 pm 
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Too Big to Fail
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buddygunz wrote:
So say two people buy an apartmnet in 2007 for 350K
One buys in Priory Hall
Another in some other developement
Come 2011 and both are in negative equity. The priory hall place is potentially worth nothing so say 300K of negative equity. The other apartment owner has 200K of negative equity.
The Priory Hall owner refuses to contribute to their mortgage the past two years whilst they are housed for free by the Council.
They now have all of the debt written off, saving them two years of mortgage repayments and 200K+ of negative equity.
The other apartment owner gets nothing and carries their 200K of negative equity and mortgage repayments.


Welcome to Ireland and its PR politics.

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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 1:37 pm 
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http://www.longfordleader.ie/news/local ... -1-5184808

A resident from Gleann Riada on Newstalk at lunchtime. They should be a special case too.....

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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 1:46 pm 
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Evil_g wrote:
buddygunz wrote:
The other apartment owner gets nothing and carries their 200K of negative equity and mortgage repayments.


And quite likely contributes to the inevitable bail out of the lending institution who have been instructed to write off the debt.


The other apartment owner has the benefit of 'their' roof over their head and the ability to be able to sell it on in the future, the priory hall residents, for the most part, also contribute to the nations coffers. This is an exceptional, albeit unfortunate, situation, I think we all know it's not an elaborate construct to beat the NE trap. As far as I know the residents were looking to transport their mortgages to other properties, so presumably taking NE with them. I don't begrudge them.....but as I said before, as far as the government are concerned, it's a risky precedent

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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 2:00 pm 
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Location: Dublin 12
Homemaker wrote:
Evil_g wrote:
buddygunz wrote:
The other apartment owner gets nothing and carries their 200K of negative equity and mortgage repayments.


And quite likely contributes to the inevitable bail out of the lending institution who have been instructed to write off the debt.


The other apartment owner has the benefit of 'their' roof over their head and the ability to be able to sell it on in the future, the priory hall residents, for the most part, also contribute to the nations coffers. This is an exceptional, albeit unfortunate, situation, I think we all know it's not an elaborate construct to beat the NE trap. As far as I know the residents were looking to transport their mortgages to other properties, so presumably taking NE with them. I don't begrudge them.....but as I said before, as far as the government are concerned, it's a risky precedent

+1 Homemaker.
This is not about NE - which most of the Priory Hall folk would probably be in had the place been built anyway right.
If the boom had kept booming, but the true state of their dwellings been sussed, their apartments would be still worth nothing.
This is 'guilt money' from a state that has plenty regulations, plus fat fees from applications to regulators - but no actual regulation - pure and simple.


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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 2:26 pm 
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Kids playing marbles in Gleann Riada ...


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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 5:08 pm 
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So the government is on the hook for

1) The entire mortgage amount of every owner
2) The cost of giving the residents new mortgages (even if they wouldn't now qualify)
3) The cost of refurbing the block

Cheapest apartment bailout in the world!

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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 5:14 pm 
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Mantissa wrote:
So the government is on the hook for

1) The entire mortgage amount of every owner
2) The cost of giving the residents new mortgages (even if they wouldn't now qualify)
3) The cost of refurbing the block

Cheapest apartment bailout in the world!


4) Cost of providing security on existing site?

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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 5:18 pm 
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Mantissa wrote:
So the government is on the hook for

1) The entire mortgage amount of every owner
2) The cost of giving the residents new mortgages (even if they wouldn't now qualify)
3) The cost of refurbing the block

Cheapest apartment bailout in the world!


Im not totally u0 to speed on Priory Hall but from what I understand some very fundamental building codes were ignored entirely. The state is the body responsible for regulation and enforcement. The architect/builder is responsible for execution. So ultimately the state failed in its task of ensuring that developments come up to the standard required and finds itself on the hook. It's not disimilar to a case in which the police beat the shite out of someone for no good reason and the state is sued by the victim. Of course there should be consequences for the cops involved, as there should for the architect. But the states responsibility is clear. This principle is evident no matter what area of the property catastrophe one examines. The banks should have been regulated properly, the CB should have had a better understanding of what was going on, the economists in the DoF should have known enough to avoid an asset bubble...etc. That they didn't leaves the state exposed and responsible.


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 Post subject: Re: Receiver appointed to Priory Hall development in Dublin
PostPosted: Tue Oct 08, 2013 5:20 pm 
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Posts: 1489
Location: ZimbabwEire
NegativeEquity wrote:
Mantissa wrote:
So the government is on the hook for

1) The entire mortgage amount of every owner
2) The cost of giving the residents new mortgages (even if they wouldn't now qualify)
3) The cost of refurbing the block

Cheapest apartment bailout in the world!


4) Cost of providing security on existing site?


Reminds me of this...

Image

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—Hunter S Thompson-The Great Shark Hunt, 1979


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