Bought in 2007? I am starting to feel so much sympathy for these people…but it wasn’t wise in 2007 and hadn’t been wise since about 2003. And there were people around to tell you this in 2007.
“Buy2Let” in “Carlow”… now how could this go wrong?
I must have missed the stories of all those people in the midlands who couldn’t find a house to rent.
Seriously, this place would have been bought for the capital appreciation primarily.
Like a stock that is seeing double digit growth but pays a p1ss poor dividend.
I think people rarely do things they think are unwise.
This person was probably just following the advice of some charlatan.
It’s quite sad that so many people have been given a life sentence because they invested their money in property at a time whenalmost all our politicians and newspapers and financial advisers were telling them that it was the best investment
The problem is they ‘invested’ other people’s money, though
This is the begining of the end. Lots of hard fought battles to go.
Exactly and we will all pay for it to help her out.
Is it sad? Really? Pity is not an emotion I feel when reading this article. Anger is more appropriate. 
Just on this one again I’m now a bit more weirded out by this.
- loan was initially interest only
- switch to capital + interest is unaffordable
- property was as a pension which means presumably a long term holding
- the interest only bit was 2 years.
- oh yeah I remember now there was at least one consumer advocate suggesting interest only was viable
- if you couldn’t afford capital + interest, and were planning to keep the property for 20-30 years as a pension plan surely this wasn’t wise?
Were they expecting a serious increase in salary in that time?
I cannot disagree with any of the above but remember that the average BTL investor was not at home to Mr. Logic when it came to borrowing money. I (and many others) raised similar points many times on AAM and no one every seemed to listen.
Perhaps she was expecting interest rates to fall. Oh wait…
Carlow has a third level campus -so there is always steady demand (during the accademic year) for rental property.
So the location is sound enough from a rental perspective -but as with nearly every other Johnny come lately to the BTL market the numbers just don’t add up.
I’d say they were expecting rents to stay the same or rise.
I’d say she was expecting to rent it but can’t, or at least can’t rent it for less than the monthly installment 
Or she figured that at the rate hpi the €200k apartment would be worth €2m by the time she retired. So then she could sell it, pay back the €200k and have a €1.8m gross profit for her retirement. 
Tell her to call Monica Leech, she may have some ideas on how to raise 1.8 million
Even if that were true she would still be bolloxed. The 1.8m would be the equivalent of 180,000 today.
I am really struggling to give a fuck about people like this.
They just whinge and moan and expect to be bailed out of the consequences of their own mistakes.
Remember IQs can go down as well as up.