Making housing more affordable

This paper was written by Karl Deeter and covers many different aspects of housing in Ireland. It was written last year so there are parts of it that are not as current as we’d like it to be. Publishing was delayed for various reasons, but we hope that it provides a good background on the many facets of housing delivery in Ireland where some changes could make a difference to delivery.

The bad news is that there isn’t any one ‘grand idea’, the good news is that smaller changes across different areas of housing could help to provide a more steady stream of affordable homes in the future.

The working report  Making housing affordable in Ireland is in the link, there are still final views, corrections and critiques to consider, but it should give the reader a good insight into housing problems and housing solutions in Ireland today.

Read More

Bank loans in Bulgaria

Bank loans in Bulgaria

My name is Hristo Dimitrov. I’m a student from Varna Bulgaria.

How to pick bank loans in Bulgaria

In Bulgaria you can borrow relatively easily for an apartment and pay it off within 30 years. The maximum loan amount for the banks are up to EUR 200,000.  Also, Bulgaria has low interest rates compared to other countries. The best conditions for buying a home are on Postbank

And DSK Bank.

For specific rules and percentages, you can look at them.

APR at individual interest rate selected for the purposes of the example * – 3.66%

An example of a fixed interest rate for the last 3 years and a variable interest rate (benchmark interest rate + margin) for the remaining term of the loan when included in the DSK Coz Plus Sales Prohibition Program.

 

The long-term interest rate for the implementation of the DSK Coz Plus program can be set in the range of 3.00% to 4.49%.

 

 

Amount of credit

BGN 100,000

 

Monthly payment

448,49 BGN

 

Term of the loan

30 …

Read More

50 Reasons Ireland Should Consider Tall Buildings

Here are 50 reasons why Ireland should consider tall buildings for residential and commercial purposes:

1. Saves Space – In a world with a growing population, developing buildings vertically allows for more space and more people. The land available for buildings is finite, and while tall buildings have a height limit, cities and towns can better utilize this space by building more tall, vertical buildings.  

Source: Wray, Sarah. “’Mini Cities’: The Rise of Tall Buildings.” Smart Cities World, www.smartcitiesworld.net/opinions/opinions/mini-cities-the-rise-of-tall-buildings

2. Creates More Homes – There is a correlation between density of a city with the number and height of tall buildings. High-rises allow for more homes by building vertically rather than building wide or horizontally. 

Source: “The Pros and Cons of the Skyscraper.” RG Group, 17 Apr. 2018, rg-group.co.uk/the-pros-and-cons-of-the-skyscraper/#

3. Creates More Office Space – Tall buildings or skyscrapers are able to satisfy the needs and desires for companies to be in proximity together in dense, urban areas. Building up answers vast company demand for city office space. 

Source: Barr, Jason. “The Economics of Skyscraper Height (Part IV): …

Read More

The Rise of Income Inequality in the United States Part 2

Previously, I discussed the theory that wealth inequality is growing in the United States. A lot of this wealth inequality is due to the fact that Americans don’t report all of their information regarding their taxes. The following are some ways to improve wealth and saving data:

Employer pensions could be accurately estimated as well as the value of homes Other financial institutions could report balances as well. This would improve wealth distribution estimates. The concentration of taxable capital income has risen enormously for the 0.1%. This percentage used to be 10% in the 1960s and 1970s and has grown to 33% (2012). The rise coincides with the Tax Reform Act of 1986 reflecting changes in tax avoidance rather than in the distribution of true economic value. Some profits of partnerships and s-corps include income labor component reflecting a rise of top entrepreneurial income rather than pure capital income. Dividends and interest earned through mutual funds, s-corporations, partnerships, holding companies, and some trusts end up being included in the interest and dividends section of the ultimate individual owner’s tax return. …

Read More

Affordability Tradeoffs – Food for Thought

“Virtually anything can be made more affordable in isolation, simply by transferring resources to it from elsewhere in the economy” -Thomas Sowell (American economist and social theorist)

Three of the primary things Bernie Sanders, an American presidential candidate, is trying to make more affordable are housing college, health insurance. Has anybody stopped to ask, what will happen to the economy three steps down the line if his policies were to be enacted? Thomas Sowell believes that transferring extensive resources from other activities to subsidize an exorbitant luxury makes the country poorer as a whole.

Medicare for all is estimated to cost between 2.8-3.2 trillion U.S. dollars per year. This is an exorbitant luxury. Housing for all is estimated to cost 2.5 trillion dollars. This is an exorbitant luxury. College for All would cost 70 billion per year from the state and national governments per year. This doesn’t mention his cancel all student debt plan (student debt in the united states is currently 1.6 trillion dollars. This is an exorbitant luxury.

Bernie Sanders’ plan fails to recognize tradeoffs and opportunity costs. Price …

Read More

The Rise of Income Inequality in the United States

When a candidate like Bernie Sanders promises free health care and free education, many Americans have jumped at the idea of voting for him. Why? Many Americans feel something radical must happen in order to turn wealth inequality around. Here are 3 Trends in wealth inequality in the United States.

Income inequality in the United States has followed a U-shaped trend since 1913. The low-point in the wealth inequality graph occurs right around 1980. This shows that income equality was its lowest at that point than it was in the last hundred years. Most of the growth in the top 10% and top 1% can be attributed to the growth of the top 0.1%. The top 0.1%’s share of wealth has risen from 7% in the late 1970s to 22% in 2012 (most recent data available). The rise of the top 1%’s concentration of taxable income rises dramatically at the time of the Tax Reform Act of 1986 This change reflects changes in tax avoidance rather than in the distribution of true economic value

2.  The wealth share of the bottom 90% …

Read More

Financial Plan Factors to Consider

A financial plan is an instrument everyone with money should create. A financial plan is any drawn out concept in which showcases some direction of where you would like your finances to go. Whether you are taking your financial situation into your own hands or seeking advice from a professional, with both options, individuals should have a written plan of expectations. However, when crafting these expectations, there are many factors one should consider in order to account for life. Here are some factors that one should consider while planning their life’s financial plan:

 

Employment – What is your employment status? Do you feel stable in your current position? Are you happy at your current job? If you are unhappy, are you considering switching to a new company? These are important questions regarding one’s employment that should be considered. The most ideal position someone could be in is one in which an individual is happy and feels stable within the company. However, if you are unhappy with your job and you are considering moving position, consider how the job change …

Read More

Housing Update and the Coronavirus

At the beginning of the year, Glenveagh Property, an Irish home building company, had shares increase by over 2%. The shares rose due to an increase in house sales and company revenue in 2019. The company achieved these increases because they had significant sales of homes for first-time buyers, where there still remains a high demand. Glenveagh Property reports the company generated revenues of €284 million, which presents an 240% increase from 2019 to 2020. In addition, the company had a 200% increase in homes built from 2019 to 2020, stating the company built 844 new homes. Finally, the company reports that they have reduced its risk in its 2020 construction targets. 

While Glenveagh Property’s positive report for the year of 2019 and hopeful outlook for 2020 are optimistic signs, the housing market may continue to grow with an improvement of the Coronavirus. On Tuesday, 11 February 2020, Zhong Nanshan, the head of China’s National Health Commission team investigating the Coronavirus, stated in an interview that the infectious virus may be over in April of 2020. Nanshan said the disease …

Read More

Social housing in Germany

Social housing is the state-sponsored construction of housing, especially for social groups that cannot meet their housing needs on the free housing market. In addition to the personal conditions, which the tenants in Germany must prove with the residence permit, there is a cost rent, as stipulated in the German Housing Binding Act.

As the number of available social housing units in Germany has been drastically reduced, other possibilities for an adequate housing situation for people are now additionally being used to ensure that people have adequate housing. The self-organisation of the inhabitants plays an important role, because they may have to take care of an apartment that meets all the requirements and does not exceed the amount of the financial assistance.

The Social Housing Promotion Act regulates housing construction and other measures to support households with rented housing and the creation of owner-occupied housing for households who cannot adequately provide themselves with housing on the market. In addition to the creation of affordable housing, the acquisition of owner-occupied residential property for a wide range of population is also to …

Read More

How to buy a house in Germany

The property prices in Germany depends on the location of the property (for example living environment and view), the features of the land and of the building (for example the size, the number of rooms and the type of the house). About fifty percent of the people who rent an apartment want to buy a house, but the costs for a one or two-family house in Germany are on average two thousand five hundred to three thousand euros per square meter. Many people cannot afford that.

To get a mortgage in Germany they must be at least eighteen years old and have equity of at least twenty percent of the mortgage value. Many legal regulations concerning the purchase of a house can be found in the Civil Code.

People who want a mortgage must submit various documents to the bank to prove their creditworthiness. For example, the bank requires the last three salary statements, the last income tax assessment, current pension information and the proof of further loans. Self-employed persons must provide additional evidence, for example an extract from the …

Read More