Buy-to-let in the firing line - Kathleen Barrington -> sbpost.ie/themarket/buytolet … 52949.html
This was always the deal. Interest Only was never for ever, it always had an expiry date. The mistake was by the investors who greedily bought for capital appreciation only without understanding that really, you need the income of the asset to appreciate for capital appreciation.
1.75% is simply shocking as an interest rate. The bank must losing something fierce on that at this stage. Even 2.75% over 2 years is cheap given the times we’re in. Wonder is this a variable rather than a tracker. I’d take a wild guess that it is and journo missed that.
The 2187 pm to 7411 pm on a 20 year mortgage seems an exaggeration.
Surely these people are hanging on by their fingertips. I think the level of BTL investors is huge.I persoanlly know so many people that have a BTL.It must be huge.
Were they his clients when they took out the loans?
No sub-prime in Ireland, eh?
I’d concur with that.
A huge proportion of my landlord/client base is up sh1ts creek.
Not only were their ‘investments’ never income positive, but they supplemented this shortfall from other areas of their business such as pubs. hotels or shops.
These business are now feeling the brunt of the recession and are themselves, income negative.
Double whammys all-round.
The only reason why no repossessions have occured is because the banks are not enforcing the full interest payable.
Being discussed over on AAM
No glee here but if you play with fire you are gonna get burned. Borrowing money that you have no intention of repaying
Anyone know which jobs etc. one is not allowed do while being a bankrupt?
Just wondering what will happen when all these people get pushed off the ledge by rising tax and interest rates…
which is one of the reasons behind NAMA.
Indeed! FF was always a vociferous supporter of NAMA.
I never realised that there was this level of financial re-tardation in this country.
I think at this stage , the Darwin Awards should apply and the only hope for the country is their removal from the gene pool
Spotted that as well.
It’s like, I have the money to pay this but…I don’t want to.