In Reply to: re: re: re: re: re: can you remember how many homes do you own? posted by Mairt on October 13, 2008 at 12:45:02:

Mairt

I'd have sympathy for anyone finding themselves hard up, and yes particularly if they have the responsibilities that go along with a family.

But the point is (and maybe it has moved away a little) that 'we' as a society are not to blame for the current economic upheaval in Ireland.

As I've observed before on this board, my parent's generation and to an extent my own generation have mortgaged the future of the country because of utterly reckless speculation in the housing market. And that doesn't just refer to those with three or four properties (although they have more blame, certainly).

Anybody that paid the 'going rate' for a house in the past 6-7 years was driving a false economy and a false boom. Just because the banks were willing to lend the money didn't mean that 1) the houses were ever worth it or 2) the borrower was always going to be able to afford it over the course of the mortgage.

The money has gone- builders are going out of business, declaring bankruptcy and running with the millions paid to them for poor standard properties, which is long since salted away safely.

The banks have been bailed out with taxpayers money, and will still be paid the mortgages agreed for properties that will end up to have been overvalued by 50% or more at the time.

Negative equity is the least that buyers from the last four years have to look forward to, that's assuming they can keep their jobs and pay the mortgage. I have sympathy for those in this situation, but I still maintain that the point I made above about being able to afford the mortgage stands true here.

And those of us that refused or couldn't afford to buy (I'm included here, unfortunately) will be able to buy in the next year or two, but will still end up paying in terms of crashing recession, bank bailouts and increased taxes due to the collapse of construction, the corruption or idiocy (take your pick) of our local and national politicians and the willingness of too many people to jump on the get-rich-quick property equity bandwagon.