Many Misconceptions about the current ranking of the Irish economy in comparison to other EU countries

A reading using these statistics is not fully accurate simply due to the fact that the statistical distortion created by multinational companies in Ireland sway these numbers. This includes the large activity of transferring the depreciation of intellectual property. AAlso the large number of leasing companies that have moved their headquarters to Ireland in the recent years. The latest GDP statists that have been published internationally show that Ireland’s per capita GDP comes in 5th place out of the 182 countries, and Ireland is first in all of Europe. While these large profits are within the Ireland borders, the majority of these profits are being funnelled by foreign multinational companies that in turn use their profits elsewhere.

In fact, using these skewed statistics like GDP can mislead data in other matters, such as debt, inequality, and worker laws. The GNI statistics is an alternative measure to the GDP, however, it is also affected by the large number of multinational companies located in Ireland and is not a clear representation of the average Irish citizen’s financial situation.

When we look at …

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How to be an ethical investor

First, it is so hard now even before the pandemic to avoid the issues of human rights violation, climate change, corporate abuse, and much more. Sometimes even donating to organizations it is hard to feel those impacts. It causes us to feel crushed by all the problems happening around us and ignore them altogether. But have you taken a deeper look into your investment portfolio? You might ask yourself, is my money-making things better or worse? How can I only donate, but help myself and others in a sustainable way?

Of course, our intentions for investing are obviously to grow our money’s worth for the long or the short term, but on the flip side, the cost of the profits for the company might be quite damaging to not only us but to others. Although you are using your money for good intentions does the thing you are investing in believe in the same morals and principles as you are? Do you continue to take part in this system pretending nothing is happening or is there a better way to …

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What does Ireland truly stand economically compared to other European powers? (pt. 2)

Much of what the general public and media base their assumptions on a country’s current standings goes with the profits being reported by foreign multinational corporations that reside in that country. These multinational corporations (MNC’s) have tended to flatter Irish’s GDP growth. Since most of these profits are beneficial to foreign parents instead of the Ireland economy, they do not affect international measurements such as GNI. But in recent years, actions taken by these firms have seen effect to not only GNI but GDP as well.

The differences are now that the large capital assets owned by these MNCs are now operating in Ireland. And these Intellectual property assets are often owned by information technology companies. This asset from abroad contribute to GDP not because of the act of acquisition itself, but once these assets are acquired. The deprecation of the asset and land in Ireland affect the statistics. The deprecation of these assets must be included in the GDP and GNI, as that is what the “G” stands for.

In 2015, many of these large MNCs decided to move …

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What does Ireland truly stand economically compared to other European powers? (pt. 1)

Ireland may not seem to one of the most powerful countries in Europe, but there are also many misleading statistics that surround the State. This leads to a misconception of what the residents of the country truly experience and how life in Ireland plays out. Statistics such as per capita GDP, the Human Development Index, and GDP per head are skewed because of international relations within Ireland. Many times people look at one of the previously mentioned statistics and assume everything about a country on that one number. But you cannot presume that off of one indicator. Multiple accounts and indicators will have to be taken into account when determining the overall status and standing of a country.

Looking at Ireland, many individuals are inclined to believe that the numbers do not show the country as prosperous, but if the small city-state of Luxembourg was taken out of the GDP, Ireland would have the highest GDP per head in all of Europe. When looking at the composite representation of a country, GDP and GNI may not be enough to have …

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Homes sales reaching an all-time high

In the last three months of 2020, the Irish market has experienced the so-called “strongest quarter of home sales in the last decade”. While the official transition figures have not yet been published, many advisors state that this past quarter has been the largest jump in sales for many years. In the number of house sales last year from January until September, there was nearly 29,100 number of house sales. Which was down 25% from the previous year. But there is an estimated amount of 18,000-20,000 number of house sales just in the final quarter.

This sudden jump in the number of sales is largely attributed to the number of prospective buyers that were locked out of the market in the first lockdown, and the market reopening at the final quarter had led to a frenzy of rushed activity as people once again were able to utilize their interests in the market. Since people were also afraid of the potential of having another lockdown occur, they were more rushed to make a decision and in that sense, the entire process …

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Who is buying houses in Ireland for cash? A look at cash buyers in 2021

With fewer homes entering the housing market, and a large amount of demand that is being unmet due to that, the Irish government incentives like “Help to Buy” have only just started to affect rising forecasted housing prices in 2021. But even so, there has been little effect in the market by people that are known as “cash buyers”.

Cash Buyers may not be the people that first come to mind. They’re not exactly the people that pay upfront the entire mortgage, because let’s be realistic, who has ever done that? Cash buyers are investors, and their acquisitions are mostly funded by debt in terms of purchasing power. This is where they get the name “cash buyers” from. Despite the pandemic in 2020, these cash buyers were still highly active in the market. Statistics show that over 1.75 billion euro were invested by investors from European property firms like the LRC. While, it was still down from 2019 when it was pre-pandemic times, where the overall investment was 2.5 billion euro, there was still a significant amount of money being …

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How the Irish Government is handling its finances

During the secondary shutdown across Europe last December, the imposition of Level 5 restrictions has led to the fall of vax receipts seen this past January. Total tax revenue for the month of January 2021 was down nearly 9% compared to previous months, coming up to be around €520 million €5.4 billion.

Of the tax receipts, the VAT receipts have been hit the hardest. This largely is due to the impact of the decrease in consumed goods over the traditionally hectic Christmas period. In addition, there has been a continuous drop in excise duty, stamp duty, and corporation tax. The one exemption to all this would be the Stat’s income tax, which is their largest tax channel. This channel has performed better thane expected, which has become a common occurrence. The income taxes generated over €2.3 billion in January alone, which is up around 4% compared to the same month in 2020.

In forecasting how the economy will move in the future, the department states the suspension of its normal monthly tax profiles will soon be implemented. This is largely …

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Negative Rates the Banks are enforcing

In 2020, Irish citizens managed to put nearly €13.4 billion into banks and credit unions, looking to take advantage of savers. This has driven the household deposit total to up to an all-time high of €124 billion. The build-up in these deposits will stay, but banks are continuously looking to pass on charges they face from the European Central Bank.

The reason why banks are looking to charge negative interest is that banks have been paying the European Central bank to hold their excess funds. In a sense, the money earned from these accounts is not being used to lend out to borrowers and generate revenue for the banks themselves. In addition, the ECB rates have become vegetive as a result to encourage more lending in the market to combat the lull in activity in the market due to COVID. This means that you’re essentially paying your bank to hold your savings, but not getting any return by doing so.

Currently, the only organizations that will be paying negative rates would include businesses, pension funds, and credit unions. The rates …

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AIB conforms to Industry Standards in drawing a mortgage

The AIB has implemented regulations that have started to severely lower the time that it allows potential home buyers to look from a new home. This time frame went from 12 months to half of that. The reasoning the AIB has given for this is that it increases the approval in principle.

Two weeks ago, on January 15th, AIB made up of around 33% of the mortgage market. The bank announced that it will no longer allow the individuals who received mortgage approval 12 months ago to draw down their loans. These individuals will instead have to do so within 6 months, which is the normal time frame for most other banks within the market. The change is said to only apply to new applicants and that if you were an individual that applied in the 12-month period before January 15th of this year, the 12-month period will still apply to you.

AIB has previously one of the only banks to offer an extended amount of time for consumers to draw down a mortgage, which was one of its largest …

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Red flag Financial words you should know

Your knowledge is the best defence when it comes to your money.  Therefore, you need to learn tactics and these words to best defend your finances from those who want to trick you. You know best about how you spend, save, and invest your money from the moment you laid on your first euro. These are some words that are completely RED FLAGS.

Deferred Interest

This situation pops up everywhere you go on ads like, “Buy this twenty-five thousand euro car at zero per cent interest rates for twenty-four months!”. But you need to know what type of interest they are offering customers during these situations. There are two main types, waived and deferred. Waived means zero per cent interest rates free and clear, meaning you will not need to pay any insurance on that car. While deferred means customers will still need to pay the interest. If customers do not pay off the amount by the end of twenty-four months or miss a payment …

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