And that's the nub of the problem with trying to help anyone in NE - you are helping them keep something that their earnings don't really entitle them to - at the expense of those who were prudent and/or didn't buy at all or bought something modest/affordable. And as pointed out above, it's not negative equity per se that's the problem - it's inability to pay a mortgage in NE. The only proposal I could see being acceptable is interest-only for as long as necessary - I know we can't speculate on house prices but it's not a mad stretch to predict that prices will have gone up enough in 20/30/40 years time to eliminate NE and the properties can be sold then to pay off the mortgage. They have inter-generational mortgages in Japan so no reason for the concept of a really long mortgage duration not to work here.it would annoy me to be stuck with my tiny 1-bed apt with a payable mortgage, while other people who over-extended themselves would get help to live in houses I can only dream of.
Why would the government (i.e. taxpayers) pay off some of peoples' mortgages? They entered into a contract freely.
Had i not been very lucky I would be stuck in a house I nearly bought for 320k and now it would be worth €170 if I could sell, which I would not be able to as the builder still has one for sale
Why would the government (i.e. taxpayers) pay off the bank's screwups? They entered into a contract freely.
If they only do it for one group, then everyone else will stop paying aswell.
I dont agree with debt forgiveness. It doesnt sit well with the moral compass i.e. those who were most wreckless are rewarded most. I also dont agree with any plans that will cost the ordinary taxpayer any additional money.
Then how does bailing out banks and bank bondholders, mostly pension funds and many of them Irish pension funds and bond investors with taxpayers money with no penalty for taking the investment risk sit morally?
Surely this is far more immoral than helping these young families and taxpayers out, I do not categorise them all as reckless as pointed out, it was beyond many of thems control how they and us all ended up in this mess. Something needs to be done or many of these people would just be better off handing back the keys to these properties and leaving this country and starting their families and living abroad where they can expect to have perhaps a job and an opportunity of some quality of life.
This country will be in a much worse position then if net emigration starts to get any worse as I have seen this happening already and getting worse.
It's a difficult problem for sure but we need to tackle it immediately in my opinion and get something contructive in place.
I dont agree with debt forgiveness. It doesnt sit well with the moral compass i.e. those who were most wreckless are rewarded most. I also dont agree with any plans that will cost the ordinary taxpayer any additional money.
Then how does bailing out banks and bank bondholders, mostly pension funds and many of them Irish pension funds and bond investors with taxpayers money with no penalty for taking the investment risk sit morally?
.
If it were me, I wouldnt give a cent to the banks/bondholders - also against my moral compass. Interestingly, there is very little Irish money in Anglo - mainly UK and Germany.
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