Hi I have a close friend who Im extremely worried about.He is a hard worker, however like a lot of people ,got caught in the Madness that went on, by that I mean the Giant Pyrimid Scheme, we now know as the Irish Property Bubble.During the Boom years he saved with a Financial Institution, got a deposit and purchased a Buy to Let property in a development, outside of Dublin.As a result of the downturn he like thousands of others finds himself in Negative Equity from a purchase price of 207k down to about 85k.The worst part of all this, is he is paying Interest only, and instead of his Mortage figure staying the same, as he pays Interest each month, it has gone up by about 8k with missed payments, ie arrears ,due to failure to make his Mortage Reypayments.In addition to this the Management Company has huge defaulters, he pays his fees, but the fees have doubled, and due to problems with Management fee arrears, the development has suffered cosmetically, hence it is difficult to keep tennants.Often it would remain unrented, hence his arrears.By my own estiminations he is about 8 months behind.
He also has a personal loan of approx 23000 euro.
This loan is also presenting difficulties for him.My friend is in his mid twenties, like us all had a good job back in the boom, and was actually making a profit from renting back then.
Just before the boom ended around 2008, he told his employer he was taking a holiday, like the other guys in the firm he had two weeks holidays, however he took 14 weeks , and spent approx 14000 euro in Greece which he took with him.When he returned his problems really began.Initially his job was the problem, it was gone, so he set about working for himself, the work simply wasnt producing the income he needed, so he dispanded the Company Name.Like so many people Alachol began to creep in, he binges reguarly mid week, often all day Sunday, Saturday afternoon until late, and on numerous occasions you will be aware of him drunk on a Wednesday, or even this week on Thursday he hit it fairly hard.While in Greece he told me openly that he would consume two bottles of vodka each day, on is return to Ireland he had to have medical checks done on his liver.
His problem now is, he doesnt care anymore, its everybody elses fault he is in difficulties, and he responds abusivly when the banks phone him to chase up their money , his whole life revolves around the next social event, the next bottle of red wine, its like for him his priorities are now him and his socialising, and the banks "Well Ill get to them some day".
His credit rating is in shreds, and the hole he is in is getting deeper and deeper.
At the end of the day the money is owed, it has to be repaid,stinging the banks is simply putting your hand in everyone elses pocket,no body was forced by any bank to take a Mortage, and when we had equity in our homes, the Banks were "Great Fellas".
Its not the Banks fault, its our own faults, mine included I borowed , and paid too much for my house, is that the TSBs fault.
Running from and defaulting on debt, pushes costs up for everyone else, causes turmoil in Balance sheets, and generally increases the interest rates for us all, and adds to our downgrade status.
Who did we really think we were here in Ireland anyway, we are a little island in the Atlantic, there are bigger farms than us in the Midwestern Praries, yet we all thought we were Millionares, the lifestyle, the car changes every two years, the holidays, the hot tubs and the houses we built.In Ireland not so long ago, people went to school with no shoes on there feet, I think we are heading there again.
He also has a personal loan of approx 23000 euro.
This loan is also presenting difficulties for him.My friend is in his mid twenties, like us all had a good job back in the boom, and was actually making a profit from renting back then.
Just before the boom ended around 2008, he told his employer he was taking a holiday, like the other guys in the firm he had two weeks holidays, however he took 14 weeks , and spent approx 14000 euro in Greece which he took with him.When he returned his problems really began.Initially his job was the problem, it was gone, so he set about working for himself, the work simply wasnt producing the income he needed, so he dispanded the Company Name.Like so many people Alachol began to creep in, he binges reguarly mid week, often all day Sunday, Saturday afternoon until late, and on numerous occasions you will be aware of him drunk on a Wednesday, or even this week on Thursday he hit it fairly hard.While in Greece he told me openly that he would consume two bottles of vodka each day, on is return to Ireland he had to have medical checks done on his liver.
His problem now is, he doesnt care anymore, its everybody elses fault he is in difficulties, and he responds abusivly when the banks phone him to chase up their money , his whole life revolves around the next social event, the next bottle of red wine, its like for him his priorities are now him and his socialising, and the banks "Well Ill get to them some day".
His credit rating is in shreds, and the hole he is in is getting deeper and deeper.
At the end of the day the money is owed, it has to be repaid,stinging the banks is simply putting your hand in everyone elses pocket,no body was forced by any bank to take a Mortage, and when we had equity in our homes, the Banks were "Great Fellas".
Its not the Banks fault, its our own faults, mine included I borowed , and paid too much for my house, is that the TSBs fault.
Running from and defaulting on debt, pushes costs up for everyone else, causes turmoil in Balance sheets, and generally increases the interest rates for us all, and adds to our downgrade status.
Who did we really think we were here in Ireland anyway, we are a little island in the Atlantic, there are bigger farms than us in the Midwestern Praries, yet we all thought we were Millionares, the lifestyle, the car changes every two years, the holidays, the hot tubs and the houses we built.In Ireland not so long ago, people went to school with no shoes on there feet, I think we are heading there again.