Comments on: How many mortgage-holders are faced with unemployment?

By: Liz@buytoletmortgages

Liz@buytoletmortgages — Tue, 01 Dec 2009 18:57:03 +0000

I agree it is absolutely shocking the poor folk suffering and the unemployment that the crunch has caused, we need some answers.

By: Hypotheken

Hypotheken — Sat, 19 Sep 2009 09:02:26 +0000

unemployment and negative equity is a big problem. Over the years, the home buying process has been simplified for everyone. I think thats also one of the problems.

By: marie halligan

marie halligan — Wed, 09 Sep 2009 13:20:22 +0000

i would like to put my name to the petion against property tax in ireland. irish people are sacrificing enough as it is. a property tax on top of everything else will just put too many more people on or below the poverty line. after all its not as if we can sell our houses any more is it? or does the government want us all to sell our homes for a pittance to n.a.m.a? just a thought!

By: Negative equity, the property market and unemployment in Ireland | Ronan Lyons

Wed, 03 Jun 2009 12:52:16 +0000

[...] other issue – income security – is even more serious. Unemployment has doubled in every county in the country and in fact trebled in the last two years in some counties, s…. Nearly 400,000 people are unemployed at the moment, and some of these have to be people who bought [...]

By: ronanlyons

ronanlyons — Wed, 20 May 2009 21:53:42 +0000

Hi Brian,

Thanks for the comment. Do you think moral hazard is a threat, i.e. that by a Debt Jubilee, we fail to learn the lessons that we need to learn from this episode? Or do you think that things are so bad, that even with a blanket debt amnesty, we’ll still remember that houses are for life, not just for ladders?

By: ronanlyons

ronanlyons — Wed, 20 May 2009 21:48:09 +0000

Hi Wigwham,

Thanks for visiting and for the comment. Ireland’s currently wondering what to do with its mortgage interest relief system at the moment (explained here: http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html). It is indeed massive tax revenue foregone. When pieced together with the potential for negative equity and the absence of a property tax in Ireland, it’s certainly some hole we’ve got ourselves into.

By: Wigwham

Wigwham — Wed, 20 May 2009 19:09:07 +0000

Does Ireland have a mortgage interest relief scheme, like the UK:

http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits/Dev_016128.xml.html

Could get veeery expensive for taxpayers!

By: Brian Woods

Brian Woods — Wed, 20 May 2009 19:07:33 +0000

Ronan,

The issue of neg. equ. is really a political matter. The legislators (all of them) need to consider legislation that will allow persons with mortgages on their primary residence (home) to write off the entire, or part. The economic model (Permagrowth) that most assumed would provide a continuing, and increasing, income stream is finished. Hence the ability of those unfortunate people, caught in neg. eq., to repay their mortgage is zero! Repossession will only result in another homless family and a vacant property to be vandalized. If some of those in neg.eq. form the opinion that they are being ‘evicted’ – watch out!! Things will go from bad to ugly to dangerous. We need a Debt Jubilee – however it can be arranged. I would suggest to your readers that they consult, Bunreacth Na hEireann (Art. 43.2.2). This economic downturn is here to stay for a very long time.

Brian P

By: Vincent

Vincent — Wed, 20 May 2009 17:17:10 +0000

In reality, I doubt if it matters over much. Given the profile of the homeowners and their need for two incomes to service the mortgage. For your purpose they may as well be seen as one.

By: ronanlyons

ronanlyons — Mon, 18 May 2009 15:34:34 +0000

Excellent comment, I’m hoping someone (Gerard from Amarach maybe?!) has survey data on how many households have two earners, etc.
That would at least give us the bounds, because as you can see from post, I’ve had to be very circumspect and write things like ‘affected by/facing the problem of unemployment’ because as of yet (one of the evidence points that time is indeed finite!) I’m clueless apart from anecdotal evidence about the issue you raise.

A further complication would be not knowing how many ‘double unemployed’ households there are – 230,000 extra unemployed may only translate into 180,000, 50,000 of which are affected twice. I think it may be time for a petition to the CSO!