Repossessions in numbers: Ireland vs the UK

When we hear that ‘we have a low level of repossessions’ it is comparatively true. It may be devastating for the people affected (as are things like cancer, the death of a loved one or any other tragic event), but it is still a relatively low number when you look at the empirical facts.

Here is a graph showing the number of repossessions in Ireland vs the UK per 100,000 mortgages. This base is better to use due to population differences. And while it may have inherent skews due to borrower/lender profiles and the like, it doesn’t explain away all of the variation.

Out of the the total population of 4.49m people there are about 750,000 mortgages (covering 1.6m households). This means that fewer than 50% of households even have a mortgage on them at all. At least every second home can’t have a ‘mortgage’ problem for this reason.

We do have a mortgage crisis, it has been building for a number of years, but to think that this is …

Read More

So with lower house prices you make big savings right?….erm…kind of…

There has been much talk in the papers from many respected sources giving people the message that ‘now that prices have dropped its a good time to buy’. I think that the true nature of what purchasing a property boils down to needs to be examined before such a statement can be shown to be true or false.

Firstly you have to look at what you are actually getting and then you have to consider what it will cost you over the long term and do a like for like comparison for the same time last year, I think that not using 2007 as a control is one fundamental flaw that commentators are making because you can’t simply look at something and say that because its cheaper today it makes sense, if you do happen to believe that please call me immediately as I happen to have some cans of dog food that I was selling for €600 last year but you can have them at a steal for €300, but hurry, they’re going like hotcakes!

Anyway, moronic inklings aside, …

Read More