What does Ireland truly stand economically compared to other European powers? (pt. 3)

Another form of measurement used when accessing the healthiness and prosperity of a country is the state of its citizens. In this case, a national indicator of household welfare is known as “actual individual consumption” or AIC. This measurement is also a part of the GDP, where it takes into account the consumption of households on services such as healthcare, education, and housing. What AIC does not take into account is the collective government spending such as defence, policing, debt services etc…

Internationally, AIC includes about 2/3 of all GDP. AIC seems to be the best fit measurement of current living standards of households, which can also e adjusted for price differentials across different countries. Ireland currently ranks less high on this measure than compared to others. Ireland’s AIC rank in the European Union has jumped around quite a bit. At 11th place in the 1990’s up to 6th in 20078. But then afterwards it fell to 14th place in 2009 and returned up to 12th place by 2019. Using this measurement, Ireland actually falls behind all six of the …

Read More

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 …

Read More

Is Renting really a bad thing?

Should you rent or should own it? This may be a controversial topic but let us clear up the misunderstandings and go over the facts.

Some may think, “Isn’t renting just throwing money away in the trash while buying a home you are putting it towards something you will own in the future?” Yes, it is but not for a long time. Many individuals pay their mortgages from 5 years upwards to 20 years or more! The first 5 to 10 months of mortgage mostly interest, meaning you are still throwing that money out the window as well. If you are tight on money already, attempting to own your first home might not be the right time for you. It may be great for some, but it could be a potential burden for others.

Although homes generally appreciate there is always a risk of depreciation due to external factors, like companies moving out of the city causing many residents to move away. If the house …

Read More

Concern for Housing Supply in Ireland

COVID regulations have hit many markets hard, but possibly the worst be in the housing industry. Due to certain restrictions, the housing supply of homes built between 2020 and 2022 is predicted to be 23,000 fewer than normal. This, combined with the growing demand for housing as well as the built-up saving of household revenue during the pandemic could cause the demand for housing in Ireland to skyrocket, leading to higher pricing. Over the last year, it is predicted that over €13 billion have been saved up by families in Ireland, and with that many households are looking to improve their housing situation at the end of quarantine. The spending demand of these households far exceeds to the market supply of housing to be offered to said customers.

The Central Bank predicts that there will be 18,500 new housing completions in 2020, and in 2021 and 2022 that number will rise to around 22,000. This in total will be 23,000 fewer houses entering the market in these three years compared to the normal growth rate of housing supply prior to …

Read More

Rapid Rebound of Economy after Covid-19

Goodbody Stockbrokers has predicted that the Irish economy is expected to see a “rapid rebound” after the COVID regulations and restrictions are lifted. In the latest report, the firms have predicted that the economy could grow by as much as 5% this year assuming that the vaccine rollout is as scheduled and efficient. The driving factors behind this predicted surge in economic growth can be attributed to two factors: the nearly €13 billion increase in household savings across Ireland during quarantine and the pent-up customer demand for services and goods.

This trend could be seen clearly in the partial reopening in December, with a huge influx in demand across the market. But with the economy reopening and people’s livelihoods returning to normal, there calls to be a careful movement towards returning to normal. It is currently estimated that around 36% of the Irish workforce are currently reliant on some form of government support. That equates to nearly 900,000 individuals that are vulnerable financially if removed from these programs too forcefully. Government implements for incentives to rehire and retaining the job …

Read More

First-Time Mortgage Buyers

The COVID Pandemic may have been a financial detriment to many, but there are also families that have been saving due to the lack of activities to participate in. After the lift of quarantine, there is expected to be a rise in the real estate industry. With so many individuals looking to find a mortgage plan, we have comprised a couple of tips on how to use your money more efficiently.

The first major actions to take are opportunities to boost your credit file. If you look online, there are thousands of articles on how to do so. But for an official site, there is none better than the Money Advice Service list. Here are just a couple of ways to improve your credit score:

1: Pay your bills on time. This may sound obvious, but many people overlook this. With being able to pay all your bills on time, there will be no more drops in your credit score, and it can only go up from there.

2: Register yourself on the electoral roll. This is such a quick …

Read More

Help To Buy For First Time Buyers

The name provides a definition for itself. First time home buyers are people in the market buying a home for the first time. Compared to other home buyers, such as trader-up borrowers and mortgage switchers, first time buyers have different benefits and restrictions when borrowing than other borrowers. The Central Bank of Ireland requires a 10% down payment for first time buyers. Now, for first time buyers, a 45,000 euro down payment for a 450,000 euro home may be somewhat daunting. However, the Central Bank has offered assistance for their first time buyers to keep them in the market. The Central Bank offers a help to buy program. This benefit allows for first time buyers of new houses and apartments to take a 5% tax rebate off of properties less than 500,000 euros. In a recent case at Irish Mortgage Brokers, a married couple came looking for a mortgage on their first home. The couple did not have a home in mind at the time, but based on their income, the couple had roughly below 500k to spend. Both individuals …

Read More

House Moving Made Easy

House moving can be overwhelming. Here are different types of mortgage options for you to try out.

Portable Mortgage – You can move your current mortgage to your new property using a portable mortgage. You probably have to fill out a request to switch and you may have to increase the size of your mortgage if the new home has a higher property value than the old home. Watch out for a higher interest rate in the new loan. Remortgage with current lender – This method can help the home mover find better rates, but there are other costs associated with this loan that make up for this. Depending on how deep you are into your current mortgage, the fee for remortgaging with the current lender is usually a cost between 1-5% of the previous mortgage. Exit, arrangement, and valuation fees may also apply. Remortgage with a new lender – This mortgage helps because it pays off your existing mortgage. You may also be able to sell off your old home. If the property value in your area has risen, …

Read More

The Coronavirus Brought Me To Dublin

As an American student from Boston, Massachusetts studying at Providence College in Rhode Island, I was offered an opportunity to continue my business studies in Shanghai, China. At the time I had to make a decision, the U.S. news reports were filled with articles about escalating trade tensions between the United States and China. Tariffs were followed by retaliation tariffs, back and forth, between both countries and I was nervous the tensions would affect China’s view towards Americans studying in their country. Despite the public tensions, I accepted the opportunity to learn and intern in a large financial hub with a rather booming economy.

As the February 2020 departure was soon approaching, I started to hear fewer and fewer stories about the Trade War, and more and more stories about a rampant epidemic, the Coronavirus. A virus that started in Wuhan had rapidly spread throughout China and even to six individuals in the United States. My concern about how Chinese people would view me altered to a concern of if I could even attend school in China. As the number …

Read More

Online Mortgage in Ireland 2019

As Operations and Compliance Manager of Irish Mortgage Brokers here since 2004, Karl Deeter has established himself strongly in the mortgage and financial world. One of his latest projects is Yes.ie that he started back in 2016. In short, yes.ie is an online brokerage. The website allows you to apply for mortgages, remortgages, investments or buy to let loans, while comparing the most competitive prices all in the comfort of your own home. On top of looking for mortgage rates, yes.ie also offers services for insurances. So, if you need mortgage protection, a pension, or life insurance, yes.ie has all the information you need within a few clicks. 

Everything about this website is geared towards the client. There’s no opening or closing time, and everything is done at your own pace. It’s hard to find the time to make an appointment with a broker. Now, there’s no need to take time out of your busy schedule to do so. Without facing the pressure of a salesperson, you can feel comfortable and apply on your own terms. 

If ever you need …

Read More