Irish borrowers among the most pessimistic

MORE than half of Irish, US and British borrowers are pessimistic about their economic outlook and personal finances, while Indians, Canadians and Australians are most upbeat, according to a survey by lenders’ mortgage insurer Genworth Financial Inc.

A quarter or less of mortgage borrowers in Ireland, US and Britain feel positive about their economies, Genworth said in its first International Mortgage Trends Report.

In contrast, nearly two thirds of respondents in India were optimistic and less than 30% in Australia and Canada were negative, according to the survey of more than 9,000 current and potential homeowners in the US, Britain, Canada, India, Ireland, Italy, Mexico and Australia.

NAMA is considering selling homes at a discount in an effort to revive a housing market that has fallen 40% since 2007, while property values in 20 US cities dropped in March to the lowest since 2003. On the other side of the world, Citigroup forecasts India’s economy will expand 8.1% in the year to March 31, 2012, and Australia is benefiting from a mining boom.

Borrowers in Ireland are most likely to have trouble meeting repayments even as property prices decline, primarily due to falling incomes, Genworth said.

Despite the US’s tough economic climate, more than 80% of borrowers expect to easily meet their mortgage payments over the next year, “suggesting that homebuyers are slightly more optimistic about their ability to make repayments than they have been in the past year,” the report said. In Ireland and the US, more than 60% of respondents said the drop in prices and a high supply of property mean now is a good time to buy, Genworth said.