If you could turn back time, if I could find a way….

If you could turn back time, if I could find a way….

Fear not, I haven’t had a Charlie Sheen style melt down and taken to singing Cher songs; in part this is clearly evidenced by still working in the mortgage world where the expression ‘winning’ simply cannot apply.

But what if you could turn back time? Would you do anything different? If you are renting, in negative equity or mortgage free we are hoping to get an answer about your feelings on your lot as we enter into a new year.

For your writers part I can say that negative equity is a fact of life that I am used to living with (on a personal basis), but if I was to go back in time and do things differently would I be in a far different position today?

Yes, I would have likely done something else with my savings that put it at risk, but the nice thing would have been that without leverage (borrowing) that would have been all I could have lost.

But the ‘loss’ for me isn’t really about capital balances, that would only be correctly applied if it had to be realized, rather it is about paying more every month for an asset than I may have had to pay for it. The whole idea of borrowing is about moving money through time and paying for it, so instead of having disposable income €X you end up making due with €X less the cost of paying for the over-valued portion.

For people renting 2012 is likely to be a critical year of deciding to opt in or become a long term renter, with Tax Relief at Source being continued and prices 52% down it would take a Japaneese (rather than British/American/Swedish or Finish) sytle meltdown to incur a bad outcome in the long term.

But do people want to be tied down to one location? Do they want to have a mortgage choice which harks back to the days of Henry Ford’s maxim ‘you can have any colour car you want as long as it’s black’ (in this case any mortgage as long as it’s standard variable, the obvious difference being that you can’t just ‘get’ a mortgage any more).

Do you think 2012 is going to be a good or a bad time to buy? In today’s poll we’ll ask you about this and right after the Christmas break we can argue about the results – because for now at least there is some celebrating to do!


[poll id=”8″] [poll id=”9″] [poll id=”10″] [poll id=”11″] [poll id=”12″]

Thanks for checking in and from the Team here at MyHome.ie and Irish Mortgage Brokers we wish all of our readers a very Merry Christmas and a Happy New Year.

Karl Deeter
(Twitter @karldeeter)
 Karl Deeter is Operations Manager with Irish Mortgage Brokers in Dublin
There are 12 comments for this article
  1. Brian Evans Lampucende at 9:23 pm

    They are all working the same principle under which any business get successful and that is true work.

  2. Olivia Byrne at 10:16 pm

    If i could turn back time, it would be to a time when we had a valued sense of community. A time when we looked out for our neighbours , when we helped each other out. We have grown so isolated within out communities, at a time when we should be trying to connect with and support each other.

  3. Jac at 1:59 am

    You can call me dumb I still don’t think I made a mistake when I bought. I knew prices were coming down, but nobody could predict that it will go down so much.
    My Income was enough to cover my outgoing as at then.
    It is irony that my total income has now reduced to a level where I can no more afford all the outgoings even with cut back in mine and my family basic consumption.
    For this reason, though I am in a sorry state, I have no regrets. Life is about risk, some win and some loose. I will endure as much as I can – that is all I can do and hope for the best.
    What I don’t like is the government treating property investors like a pariah and letting banks have it all their way in response to megaphone economist. They should be made to take some responsibilities as well.
    What has been forgotten is that most of those who invested in property are not stupid to think they can increase their current income by investing in property. Investment in property is a long term proposition for future security of pension purpose which we all know is essential for our future.
    Overall I will still prefer to have my destine in my hand by running property(ies) rather than invest in shares or contribute to pension fund other than is absolutely necessary for legal or occupational reasons.
    I think government should think about this when attacking small investors as if they and the one who ruin the economy.

  4. Paul at 9:52 am

    I bought my first house in 1991 and still I feel it was still a good investment. I married and we live in a house my partner bought in 1999 which is still a good investment in my view. My mistake was to buy a S23 in 2003 which I beleive all stakeholders acted improperly: Government which encouraged the purchase for the gain of substantial tax revenue(greed), Mortgage company which did not act as an expert in their field by issuing an amount of money (interest only)to me which if properly evaluated would not have made sense(greed),professionals i.e. solicitors,valuers, estate agents who did not feel a duty of care to me but were swayed by healthy fees (greed) myself for not also evaluating the risk that the investment could fall in value and that in the long term (if properly evaluated)would not pay for itself (greed).
    All stakeholders have a responsibility to rectify the situation now not just the borrower (the only figure not to decrese is the amount borrowed) and before this happens I cannot see the future improving.
    However I do feel(hope) these situations will be addressed at some stage as they are existing in most countries and therefore I wish everyone a Happy Peaceful Healthy and Prosperous Christmas and New Year(future)

  5. Polly in Minneapolis at 9:15 pm

    Hello ye Irishmen all – I hope to retire there in about 6 years, in Tipperary (ancestsral home) or Waterford. I would like to find land, about 3 acres, with some wooded if possible, but not low-lying, and build a small home for two. Anyone have any land near Carrick-on-Suir, Grangemocker, Callan, Ninemilehouse, or Dungarvan in the higher land? Just wondering. Tired of Minnesota winters – ! So, so, cold. Anyway, I’ll be over again in May sometime, and if you have any acreage that matches what I desire, please contact me. Kind regards, Polly

  6. james at 3:14 pm

    We had a month in S Ireland looking to buy, and decided the future looks to uncertain tax wise.

    The country allowed itself to be bankrupted by…BANKs etc and they will now squeeze the working folks for all they can get.

    The UK the same but possibly on a lesser scale

  7. joseph at 2:40 pm

    Paddy tax payer has it right really????
    I live and work in england but would love to return
    home one day….yes house prices are comeing down and not before time.
    But i dont know how i’ll ever manage to return
    with all these new taxes and charges that are being imposed on the people of such a wounderfull country. somebody really has to sit up and listen
    to the people because one day, i dont think there will be anybody left in the country to pay these charges!!!!! I know of enough friends and relatives
    that are seriously thinking about emigration and think iv lost the plot about wanting to return????

  8. Daisy at 1:36 pm

    I don’t regret buying my Home & I don’t regret not selling it 2yrs later when I was offered 35% over what I paid for it.

    Life is not for living with regret but if I had a Christmas wish (beyond the health & happiness of loved ones!) it is that somebody somewhere finds common sense once more to allow those that can afford to pay back do so at levels that allow them to breathe instead of steadily & slowly choking us & do those that can’t, talk to them, work toward solutions instead of ignoring the problems – it won’t go away!

    I budgeted for tax/social charge increases but the savagery of cuts and increases took me completely by surprise, yes there are the reckless borrowers – but not all of us were reckless. We should be working together but nobody seems to want to roll up their sleeves & make a real start!

  9. CJ Dublin at 1:06 pm

    The cost of putting a roof over ones head whether residential or commercial is still too high. A two bedroom apartment in a good part of Berlin cost €420 a month – the equivelent here is €1,100.Why? We still have upward only rent reviews for businesses and high commercial rents. Why? Rent should be reflected in incomes, likewise property values – this is not happening. Until it does the economy cannot recover. CJ

  10. Dan Lonergan at 12:23 pm

    What about an Anti Property Tax Campaign
    As AGAIN the Government is fumbling and
    slowly trying to brain wash people

  11. Paddy tax payer at 12:10 pm

    Property is still much too expensive. Have a look at the line on your pay slip called ‘net pay’ and relate house prices to that. A house you live in is not an asset or an investment; it is a liability as it has to be insured, secured, maintained, property tax paid, etc. Over the past 30 years we’ve been owners, land lord, and tenant and now that we look back we do not think property ownership is worth the hassle, better to rent to suit your current needs and move when these needs change. As a result of this policy we have in later years sold our couple of houses and rented. We lived across the street from our children’s school and later the University in properties we could not have afforded to buy, and think of the stamp duty, legal fees, auctioneers fees and other costs we have saved. Perhaps in years to come we buy a retirement house somewhere warm just to feel ‘they can’t throw us out’ but having money in the bank and a good pension paid for with the money saved by not paying huge mortgages is also a good feeling, it’s called freedom!

  12. Alec at 12:03 pm

    Being honest i feel it is the greed selfishness and complete lack of cop-on that ruined this once great country. Irish people used to be known and loved for their honesty, good craic, harding working. Now we cant even trust our government ( not that we could for some time) or any politicians really. The so called Big Wigs across the country dont give a rats about the people that have made them their money but just the profit they are making at their staffs expense. Its Christmas i want to forget what a sham this country has become and enjoy the festive time with my Family and Friends while i can. So a Very Merry christmas to all and may the New Year not make all Irish people Emigrate.