Sunday, December 20, 2009
Pleading for more bailouts
Irish house prices may be down 50% from their peak by the end of 2010, leaving one in five homeowners in negative equity. To say that someone should just sit tight and love their home does not take into account the Irish way of buying houses - the so-called property ladder. The property ladder philosophy is that people started out by buying a small apartment or starter home and then traded their way up. It was a system that worked well for us for many years. But negative equity threatens to destroy that system by destroying mobility. Various options that could help. Creative 125% or 50-year mortgages would allow more people to hang on to their homes. The Government should abolish stamp duty for one year, or at least allow owners to write off their losses against stamp duty.