SME debt rises

Debt can come from a variety of places, especially when you are working within the confines of a business and it’s very specific budget. Many times, debt for these institutions is in the form of owed money; this owed money was usually a loan from the bank. 

Within the recent years, the prices of these loans, or borrowing costs, have increased. The first three months of 2019 have seen significant growth in this area, despite economist’s predictions that interest rates would be falling within the year. 

SME’s, or small-to-medium enterprises, saw these high borrowing costs as a sign that they should proceed with extreme caution when working within the borrowing market. These businesses already pay some of the highest interest rates in the European Union and have made sure to be well educated on the possibilities of economic changes or interest hikes on their finances. 

Small-to-medium enterprises are extremely important to have in any market, given that they play a key role in employment. Small enterprises are defined as having less than 50 employees and have an annual turnover or …

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Energy Prices

Consumers have been warned about rising energy prices. Many have been urged to beat immense energy price hikes by switching suppliers. According to new research from the energy regulator shows that house holders who actively switched electricity providers over the last four years have saved more than €1,000.

According to the Commission for the Regulation of Utilities, seven electricity suppliers announced that energy prices will rise in the next few months. The average increase in energy costs amounted to 5 percent for electricity and 13 percent for gas according to the commission for regulation and utilities.

Across the last four years, those who choose not to switch their suppliers for both electricity and gas suppliers over the last four years could have saved €1,700. The CRU claimed that savings made through changing electricity and gas suppliers 0r negotiating with a current supplier could have helped customers save on the recent raises in price. The CRU further described switching rates by consumers last year as “robust”. In other words consumers who took the advice to switch providers or negotiate with their current supplier …

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Childcare challenges

Having a child can be an extremely rewarding experience, but it is not without its challenges. For most people, it is a pivotal step towards full adulthood and requires a great deal of contemplation in regards to finances and time availability. 

The most recent census statistics have proven that having children is a common occurrence for young Irish adults, making Ireland’s under under-five population one of the highest in the 38 European Union countries that were examined; 398,000 children, or 7pc of the Irish population, is made up of young children.

A Eurydice report , published in 2019, focused heavily on examining early childhood education and care in European nations noted that Ireland is one of four countries to have extremely high child care rates, especially for those under the age of three. The other three countries with high costs are the Netherlands, the United Kingdom, and Switzerland. 

This sheer number of children within Ireland comes as a somewhat shock to economists, who note that the costliness of childcare exceeds almost every other European country. There are a multitude of …

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High land prices keeps developers from supplying homes that are demanded

High costs of land is making developers unable to supply homes that are truly needed to solve the housing crisis. According to a leading developer, land prices specifically need to be reduced by 25% to 35% to meet Ireland’s real demand for housing.

The development company, O’Flynn Group is currently developing 1,600  new housing units across 11 sites in Dublin and Cork. O’Flynn Group’s chief executive, Michael Flynn stated that Ireland’s residential construction activity may be nearing a plateau. He reasons his statement because of restricting limits of supplying homes, ranging from mortgage lending limits to skill shortages in construction. Regulation serves as another limiting factor in supplying homes.

According to O’Flynn, the real demand for housing is twice the amount developers are able to deliver. He continues to denote that if artificial restrictions are not limited, and demand for affordable housing is not met than the housing crisis will only continue. Lastly, he noted that more households will be forced into the rental sector with out the hope of saving if the trends previously described continue.

O’Flynn was prompted …

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Housing and the Changing Demographics of Ireland

In order to solve the housing crisis, policy makers must consider changing demographics and plan for long term methods to resolve the housing crisis. According to Engineer’s Ireland review of housing in the The state of Ireland 2019, projections of future Irish population is increasing in number, age and diversity. The population is expected to grow from 2.78 people in 2017 to between 5.6 to 6.7 million people in 2051. The median forecast was defined as approximately 6.2 million people. An additional 1.48 million people must be housed in the next 32 years.

Future demographic projections are essential in forming adequate long term planning in regard to housing in Ireland. Due to the significant projected increase in population size, there is great demand to increase housing supply and plan accordingly.  The current average size of an Irish household is 2.7 people per home. If the average household size remains the same, the number of homes supplied must amount to at least 548,148 additional units by 2051. This amounts to an average of 15,661 additional housing units must supplied each year …

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Effects of ending the help-to-buy scheme

The help-to-buy scheme was designed to help first time buyers buy a home. First time buyers are encouraged to buy property through the help-to-buy scheme by refunds of income tax and deposit interest retention tax paid over the last four years. The help-to-buy scheme allows purchasers to claim a rebate  tax already paid of income up to €20,000 depending on the value of the property.

There is a move to end the help-to-buy scheme. This would be detrimental to the housing market. Figures have shown that more than 80% of all first time buyers are relying on the scheme to buy a home.

However, the scheme is scheduled to end at the end of 2019. The government has given no indication of an extension of the help-to-buy scheme.

According to theBanking and Payments Federation, 84% of new property purchases were made by first time buyers with the support of the help to buy scheme. Furthermore, chief economist, Dr Ali Ugur, claimed that the help-to-buy scheme was important for market stability. It was a key component in helping housing supply increase and …

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More families unable to afford homes in Dublin

The Dublin City Councillors agreed to tightly restrict eligibility to qualify for the affordable housing scheme. Thus, fewer families will be able to buy social housing in Dublin.

The Dublin City Council is seeking developers for 400 new homes on three different sites. These homes will be offered for sale to qualifying low and middle income workers. The starting price will be from $116,000. New apartments and homes amounting to 370 new units in Ballyum and Ballyfermont will be the first of several thousand affordable homes in all of Dublin, Fingal and Dun Laoghaire.  The scheme of priority has been approved by councillors by the four local authorities. The scheme determines how prospective buyers will be chosen.

Priority applicants have been defined as those living in the council area for at least 12 month will be the first to chose the newly available homes. The remaining homes will be offered to applicants with children in education in a set distance of the property. Any remaining homes will then be available to those who have a household member with a job …

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Risks to new social divide due to housing crisis

The burdens of the housing crisis continue to have an effect on everyday life. More homes are being built to slowly reach the immense demand for housing. In the month of March of 2019, more home were built than were sold.

Although more homes are being built, houses are still too expensive for an average couple to buy a first time home. Builders and developers are hoards land, and this keeps prices high. According to economist, Richard Curran, Ireland is headed for another crash. Curran believes there is a bubble in the housing market. Rents are rising too high while cuckoo funds are buying up too many apartments which causes first time buyers to be pushed out of the market. Furthermore, supply of housing is increasing but not enough to keep up with growing demands.

The number of homes are increasing, however these homes are not demanded. The homes built this year are too expensive and in inconvenient locations. Housing prices are likely to severely crash just as they did in the past.  There are fewer homes being sold at …

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Ireland vs US: Wholesalers

What does it mean to buy in bulk? There are many different definitions depending on the social and cultural norms of a country. Normally, these intermediary entities are referred to as wholesalers.

Wholesalers are businesses that purchase large quantities of goods at lower manufacturer prices and sell them to retailers or in some cases, directly to consumers. The prices that the products are sold are usually lower, given the high quantity of product that a person or company is buying at one time. These wholesale stores generally help to eliminate a lot of the hassle that is associated with working directly with manufacturers.

Large manufacturers have been able to increase factory gate prices by 0.3pc within the month of May. This increase is less than the 0.8pc increase that was achieved in May 2018. Furthermore, the total percentage decrease for 2019 has been totaled at 6.3pc, which is 0.4pc more than it was this same time last year.

These Central Statistics Office findings seem to be reporting that Irish manufacturing is not growing as steadily as it was in the …

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Ireland vs US: Public Transportation

Temporarily moving to Ireland has taught me more in my first three weeks than I had ever anticipated. One of the largest improvements to my life, in my opinion, has been the accessibility of public transportation. These bus systems and railways extends all across the country, allowing a person without a car or irish license the opportunity to explore many different parts of Ireland.

Additionally, this transportation is efficient and timely. The schedules are always available at stops or on mobile devices, giving travellers a very clear idea of when and how to get from one place to another.

At some point in these three weeks, I have really begun to understand where the busses go, what time they will be at the stop I like to use, and on average how long it will take for me to get back home. These instincts have taken time to develop, but they have allowed me to become a more independent and confident solo traveller, even if it is just solo travelling in Dublin.

My university in Ohio …

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