One of the reasons that people, including myself, have surmised is behind the very low level of repossession of buy to let property in Ireland (500 in 40,000 in arrears) is that maybe a lot of the property was secured on peoples personal primary residence.
From the survey on buy to let investments we had about 100 people who availed of the opportunity to give their email, so as to be kept in touch with on the study. Today, I emailed them with one simple question : what, typically, is the security on your BTL properties. The results are above.
Caveat : this is the results from 40 people who responded. It is a snapshot of a small part of the puzzle.
Caveat over, if this is in any way representative of the situation Mr Ponzi is in the house. Far from these people having their BTL investments secured on their family home, its more likely to have been cross secured on other property investments. If it is secured at all…Really, if this is even close to the broad picture, then we have to ask even more serious questions of the banks.
Lets pray that this is not representative.