Bronte, thousands of people have already availed of PIA's. Having said that, I am still baffled, in 2019, to meet clients facing severe financial difficulty that have not previously heard of Personal Insolvency Arrangements, despite all of the media attention and advertising.
Then I would suggest someone like Charlie Weston in the Indo etc ought to do an article about how the different 'schemes' work out.
The PIP - imsolvency or bankruptcy
The Mortgage to Rent
The Arizun stay in your home
Iclude
etc.
Actually BB that might be an idea for here,
My concern on this is how does a pensioner pay a mortgage. Is this not just kicking the can down the road.Facts:
Modest family home worth €190,000,
Amount owed €323,626.21.
Term: 18 years
Couple with two young children
Income Wife: €1,488.
Income husband€1,625.
Total income monthly€3,112.65
Reasonable Living Expenses €1,835.74 per month.
Mortgage €1,080.58
Mortgage insurance€106.48 per month.
Total outgoings of €3,022.80
Surplus €89.85 per month.
Questions:
Term goes to 27 years. And husband will be very elderly !!!
Is this the best option? They keep their home, if it goes up in value it's theirs, they get to own their home, they are housed, they are presumably happy.
Which other scheme would be better for them.
But I see mega trouble ahead with an extension into the wife's and husband's retirements.
Is this not just kicking the can down the road.
Hi Horsey
You are quite right.
They should simply sell the home now and rent for the rest of their life.
Ooops wait a minute... how does a pensioner pay rent?
Brendan
That's the bit I don't understand. But as BB said if they lose the house they'd still have to pay rent.My
My concern on this is how does a pensioner pay a mortgage. Is this not just kicking the can down the road.
Ooops wait a minute... how does a pensioner pay rent?
Rents are at an historic high and will drop.
With home ownership comes a whole host of other costs not just mortgage payments, how many older people are currently in properties they must pay property tax on although they don't have the funds to do so
The poorest pensioner generally has an income of €1000 or so a month. LPT on a big property would cost a lot, but it wouldn't be financially crippling once the house was owned outright.
There is a much bigger problem. Traditionally people have reached pension age in Ireland either in social housing or with a mortgage paid off.
Now there is a growing population of people who are going to have to pay private rents or have mortgage commitments while retired. Check the Census data - it will only get bigger too. This is going to cause a lot of financial hardship for people who are only on the state pension.
I would expect property tax will increase and will become similar to the Poll Tax in the UK. The Govt want to spread the sources of its tax take rather than relying on a small number of sources for the majority of its tax take. The property crash is one of the reasons the tax take fell so dramatically.
Thks I am aware of the difference the point I was making is lpt will change to spread the tax base.The LPT is nothing like the poll tax.
The poll tax was a tax on the number of persons living in a house.
LPT is a basically a % tax on the value of the house.
This has come up in the context of a PIA for Frank McNamera and Theresa Lowe, they are arguing in court that they can service a mortgage into their late seventies as they are self employed.
There is one thing being in a position or interest to do it, but there is a completely different matter of HAVING to do it to keep a roof over your families head. The reality is this is beyond average life expectancy and effectively banking on no health issues arisingAnd if they can why not? My self employed father worked until he was almost 80 because he wanted to. Maurice Gaffney was still practicing as a barrister aged 100. I despair for anyone feeling spent at 65. You're pushing it at mid 80s imo.
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