Who’s the baddest of them all?

The Irish Property Owners Association did a survey recently asking investors about their position with banks and how their investment was faring in general. Something that was interesting was the way that people saw the lenders in terms of how aggressive they are on pursuing a debt.

Here is the list…

Most aggressive bank

  • BOI: 47%
  • AIB: 27%
  • PTSB: 13%
  • KBC: 13%

There is a skew because Bank of Ireland are also owed the most (36% of the borrowings in the sample), but then you have others like PTsb who are owed 17% and are only considered 13% ‘aggressive’. Does this tell us that banks which were not bailed out to the same extent (Bank of Ireland were bailed out, they just aren’t in state ownership) have a far more aggressive stance on chasing those in arrears?

And in terms of doing deals, are they caught in the same stasis as other banks who have Government shackles on their feet?

And what does this say of our landlord class who seem to be ill equipped to deal with the failure of their investments? With >20% of leveraged properties being in arrears. The ‘Irish Landlord’ is not big and bad, 74% of them have only one investment property, and then 24% have between two and ten, meaning the ‘super landlord’ class is only 2% of the investors – at least of the leveraged ones that we can get data on. This idea of there being a large rent seeking elite could be true (because we don’t know for sure), but the numbers seem to dispel that.

 

Leave a Comment

Awesome! You've decided to leave a comment. Please keep in mind that comments are moderated.