It was budget week and on ‘Talking Money’ we came up with a ‘fantasy budget’ which considered some of the things we might do if budgetary powers were in our hands. Some are far out, others are novel, some (like car tax abolition) are pragmatic, you can decide for yourself what you think!
In the Irish Times, Isabel Morton echoes some thoughts that I also have, that the property market represents a good opportunity at present, there are considerations though – namely to look for non-apartment second hand properties within the M50.
Last night I got to help launch the ‘Irish Property Buyer’s Handbook 2012‘, the second edition which was written by Carol Tallon [disclosure: the lowlight is my chapter on mortgages]. Minister of State for Housing and Planning Jan O’Sullivan was the guest of honour. It went well, and I think the book will be a success amongst prospective buyers because it really is a great piece of work on the practical aspects of buying property.
Phil Hogan is looking for some new thoughts on how to avoid a repeat of Priory Hall, the idea being ‘compulsory certificates‘ by architects. This seems like a great idea in soundbite format, …
Holding an average balance of €2,500 in your current account means that anybody on the average industrial wage will probably never qualify (because they’ll only earn about €2,330 per month after tax) unless they start to use it as a ‘savings account’ as well.
Some thinking thus far is that you always have the option of putting €2,500 in an actual deposit account at 4%, that will yield €100 per year which, after our fancy new [higher] DIRT rate kicks in, will net you €70 or about €5.83 a month which will buy you a Mars bar once a week every week.
‘Free banking’ was never actually ‘free’, there were always charges for overdrafts, and referral fees, and bounced cheques. What was ‘free’ was the access and use of the payments system or the ‘money transmission system’ as we call it in bankolloxolgy.
the rage of the National Consumer …
We spoke to Brian O’Donovan from TV3 News about the upcoming Allsop/Space auction in March. One property is listed at €7,500. Even if you priced the land at zero or used construction costs this property is undervalued because the actual materials that go into building it would cost more to purchase.
Obviously the idea of ‘value’ isn’t just about materials, it’s also about utility and for that reason the materials assembled (construction) in a certain location may make them somewhat worthless, but it is an interesting development to note.
Karl was asked to appear on RTE’s ‘The Frontline’ because of his support of property tax. This is ‘the wrong step in the right direction’ in his opinion. Less income tax with local authorities supported by a ‘Site Value Tax’ is the way to go in his opinion. It was not a popular opinion.
I like John Maguire, and a part of me knows that this article is about a bit of spin to make interesting reading, but it also provokes a bit of a laugh too because the quotes are pure gold… (having met the guy I can’t help but suspect it was ghost written).
“At the starting line of the Berlin Marathon, I chain-smoked five cigarettes while rubbing Tiger Balm into my legs.“
“I used to joke that only two things would survive a nuclear winter: cockroaches and me.”
“The smart thing would have been to take my spare cash and move to my mortgage-free place in Dubai with its private beach.”
“I would do things other people were not prepared to do, just to prove a point.”
In between those legendary quotes there is the story of taking a dive into the downturn that so many in this industry have faced, I can tell you from experience it is a painful learning experience, but learn you will whether you want to or not.
John has …
An excellent analysis of the issue with banks being bailed out, banks get into trouble and they are rescued (bailed out) or they default and creditors take a hit. However, often times the sovereign gets into trouble as well. Does the Sovereign then privatize assets or default themselves? Assets such as the banks fall into the hands of foreigners at that point – as we have already seen with Bank of Ireland.