THE biggest personal financial decision in our life is house purchase. The characteristic of wanting to own your own home is part of our DNA. Nowhere is boom to bust more evident than in the housing market. In 2003 proper records were assembled on mortgage credit, when total loans amounted to less than €20bn. The peak was reached in 2006 with €39.8bn of house finance. Shockingly, the half-year figure up to the end of this June was a paltry €2.5bn.

These are more than statistics. They explain why house prices cannot stabilise let alone recover. First-time home buyers cannot access cash. I heard of an incredible anecdote last week. A high-earning couple with a joint salary of more than €170k per annum and secure jobs were refused a €290k mortgage for a house valued at €480k. Their net after tax income of €9,000 per month wasn't deemed sufficient for monthly repayments of €850. In lending terms, this is a no-brainer.

This sharply contrasts with the fast and loose availability of sub-prime mortgages a few years ago. 110 per cent of house value finance has now resulted in 200,000 people being in negative equity – the loan is worth more than the house. Push has come to shove in terms of repayment arrears. 32,000 householders are over three months behind in repayments. The Government has huffed and puffed about 'my nama' – i.e. a bail-out for distressed mortgagees.

An expert group, along with the Financial Regulator, established a new code of conduct for financial institutions. This means that a process of procedures which can take up to 18 months, before a court repossession is sought. This includes correspondence, repayment plans, explanations and appeals. These avoid the crunch issues of final resolution for both parties.

In the US you can hand back the keys, thereby, exiting the problem and losing the saving/equity value in your house. This at least allows you to restart your life without the legacy of unsustainable debt. The other ultimate solution is to convert house purchase loans to rental agreements. The family can retain their home and pay according to their means, but forfeit ownership of their home.

We must face up to the end game of our housing crisis. Instead of merely going round in circles, these imaginative permanent solutions are required.

ELECTRICITY PRICE SHOCK

Ireland has the third highest electricity prices in the EU. The blame previously was deposited on the ESB. The narrative was that their monopoly facilitated a virtual blackmail situation for the consumer. To prevent power cuts through strikes, staffing levels and an average salary of €68,000 was tolerated. Accusations of inefficiency, feather bedding and poor management were commonplace.

We were promised a bright new horizon through competition. The Commission for Energy Regulation (CER) was to oversee a dynamic competitive arena, lowering prices. New players such as Airtricity and Bord Gais Éireann, with their ' big switch' campaign (a la Lucy Kennedy) enticed us to believe that value for money would accrue. The opposite is now happening.

The CER's Mr. Tutty announced that from the October 1 electricity prices are to go up by 5 per cent. This is to raise €157m per year. For what? Apparently, it's a Public Services Obligation (PSO) levy to pay for additional costs of wind power generation and a subsidy to support peat burning stations. What a load of nonsense. The purpose of wind power is to utilise a renewable source of energy with zero carbon emissions. Yet, the highest emissions of carbon dioxide per kilowatt hour come from peat. UCD research shows that one million tonnes of CO2 could be avoided if we were to substitute coal, oil or gas. Instead of an economic, marketbased solution to drive down costs, we have ended up with a political mish-mash of PSO surcharges.

Over 200 households per week are having their electricity disconnected for non payment of bills. A further three per cent hike on householders is being threatened to rebalance tariffs in favour of big business. Methinks the simplest solution is more mega watt inter-connectors linked to the European grid, so we can avail of the cheapest nuclear and other sources of power.

FAI FINANCIAL FOG

The long awaited AGM of the FAI in Wexford failed to provide clarity on the Football Association of Ireland's financial position. Last year's AGM revealed a loss of €16m. We are told they made a profit of €3.6m for 2009. The big World Cup qualifier fixtures at home against Italy and France boosted revenue. This is unlikely to be repeated for the Euro 2012 matches, with Russia as the only likely big ticket attraction.

Overshadowing the annual finances is the funding dilemma for the Aviva stadium. The total cost of the redevelopment at Lansdowne Road was around €400m. We taxpayers contributed €191m. The FAI obligation amounted to €90m. The principal fundraising mechanism for this was the Vantage Club 10,000 tickets plus corporate seating. 3,700 of these were unsold. This has resulted in a serious shortfall in the FAI budget. By the end of 2009 borrowings of €38m were necessary.

The significant question that remains unanswered is what the level of FAI debt was at this mid-year point of the completion and handover of the stadium. Has the debt risen to a new level since December to cover the shortfall for ticket sales? Will the unsold tickets be now heavily discounted? Will the spectre of empty seats, as seen in the Argentina game, be a constant feature? Ten-year tickets were overpriced. Fans can now purchase seats for €74 that previously cost €533.

When it comes to financial transparency the management maxim at Abbotstown seems to be on a 'need to know' basis. There is no reason to believe that the ravages of recession have exempted sport. The extreme money distress of the League of Ireland and its clubs barely got a mention. I'll retain a watching brief on the true state of soccer's sums.

I greatly enjoyed three terrific days racing on the Knavesmire at the York Ebor festival. The most impressive improving horse to go into my notebook was Rewilding. Without a run since his third placing in the Epsom Derby he can only improve on his effortless victory in the Great Voltigeur Stakes – the most impressive trial for the Doncaster St Leger. At odds of 7/4 I fully expect Frankie Detorri to be leaping in the winners' enclosure with another spectacular dismount after the running of the final classic.

A new season of the Magners League resumes this weekend. Italian clubs Treviso and Aironi Rugby will add spice to the competition. Who will be the regular season winner? I narrow it down to three past victors: Ospreys, Munster and Leinster. Other teams' away performances are too unreliable. Munster is a team in transition. Leinster's stars are ageing, while coach Michael Chieka has moved on. My fancy is Ospreys to retain the title at odds of 5/2. Their home record at the Liberty Stadium in Swansea and the appointment of new skipper Alun Wyn Jones make them the safest selection.

- IVAN Yates