This week on ‘Talking Money’ Karl Deeter and Jill Kerby were discussing ‘switching’ with Cormac on RTE’s Drivetime. It was coincidental that many of the points we made were reinforced by the Central Bank findings this week on mortgage switching on points such as assertive customer behaviour being important and not allowing inertia to hold people back.
Yesterday on Newstalk’s Breakfast show Shane Coleman spoke to Karl Deeter of Irish Mortgage Brokers about rent controls and what effects they may have, it is also becoming known as ‘rent certainty’ which is a more politically correct version of the same expression.
Germans have struggled to make this workable, as have the French, these markets are also heralded as the markets we should aim to replicate, but why would we want their problems when we have problems of our own already?
We spoke with Mary Wilson of Drivetime on RTE about mortgage rates and what the implications were of the changes Michael Noonan (Irish Minister of Finance) announced that day. We also read through the Central Bank report on the subject and considered the findings of their analysis in terms of the impact it might have on borrowers.
We were asked to speak with Pat Kenny today about variable rates and the government plan to intervene to make banks drop them. This was, after considering various pieces of evidence shown to be a deeply political rather than pragmatic move. We also demonstrated that there are documents which the Minister for Finance had drafted up with the banks specifically stating that he would not intervene on matters of pricing, the recent round of ‘meetings’ is in direct contravention of that.
Pat Kenny spoke to Karl Deeter about some of the huge, but unreported issues in the housing market, such as ‘who owns derelict sites and buildings’ and how regulations can sometimes make it difficult to provide quality housing at affordable prices.
This was an extended segment on something of great national importance that generally doesn’t get a lot of airtime so we were very pleased with Newstalk for the opportunity to work through it and to have the time to describe many of the nuances that would otherwise be overlooked.
We were discussing the reasons behind having an allocation in gold or precious metals in a diversified portfolio this week on ‘Talking Money’. Jill Kerby raised interesting points about the benefits while Karl said that it’s a good hedge but also one that has lost a lot of value in recent years.
Fair Deal is a scheme which is there to help make nursing home care affordable for people. It doesn’t discriminate based on means, but it also tends to run out of money and often people can be left holding on to valuable assets while the state absorbs large costs on their behalf.
This week in ‘Talking Money’ we examine whether or not it makes sense and what you can do about it.
Quantitative Easing or ‘QE’ for short, is a process where Central Banks buy assets from commercial banks and it is known to bring down bond yields and drive up other asset values.
This has begun in Europe and on Talking Money we looked at some of the effects it may have and the issues that such a highbrow economic issue raises for regular people.
The idea of ‘financial milestones’ is that at certain times in a persons life they should have achieved certain financial goals. This isn’t materialism, it’s simply a money amount which demonstrates the level of financial sense being instilled in the person, the same as school tests show levels of literacy etc.
Karl Deeter and Jill Kerby went through some that children should have at certain ages and why they are important.
Cars are one of the larger non-housing purchases people make. They are expensive to own and maintain and the shortage of car purchases during the downturn has meant that second hand car prices are quite high now.
This week on talking money we looked at some of the practicalities around buying a car, the price of buying new and some of the things to look out for.