Entering the World of Investments

Whether you are a new investor or have an established portfolio, investing in any area can be scary and confusing. There are many different ways to invest your money, but how and where you do depends on many factors. The one term that encompasses all these factors is risk tolerance. When investing, you always need to ask yourself “what’s my risk tolerance?”

There are 4 key factors when analyzing your risk tolerance.

1: Your investment time frame

This may be the most broad factor, but it has rung true for most investors. the main logic behind this is the more time you have to invest, the more amount of risk you can afford. Say an investment goes south while you are still relatively young. You have a greater amount of time to make up for this loss compared to a person a little older. However, like I said before, this is a very broad rule and further considerations are needed to decide which investment is right for you.

2: Your Risk Capital

The amount of money you actually have to …

Read More

Fine Gael’s Tax Regime Under Scrutiny

Ireland is known throughout the world of having a very low corporate tax rate, which draws in many multinational companies. In addition, foreign property investment funds are also paying very low taxes and are walking away with massive profits. Many believe this is hurting the average taxpayer and are calling for an increase on taxes to foreign investors.

A main critique to this is the current housing shortage and how it may encourage less houses being built. However, this fund is buying large chunks of land and holding it to draw prices up and then selling these properties at premium prices. The housing shortage is due to the lack of affordable housing, not high-end luxury houses. Pearse Doherty, finance spokesperson, has been raising this issue publicly after he learned that only approximately 13 million Euros were collected on taxed profits out of the hundreds of millions that the companies earn. One of the tax loopholes that companies use is the Fine Gael’s tax regime. These loopholes allow them to avoid cooperation taxes on rental income and tax on gains if …

Read More

Just repossess stuff, there are REIT’s and Social Housing folks who want them

There is a message coming from two sectors who have a housing demand that isn’t discussed when it comes to the finger pointing game, but who, by rights should get a mention.

The most recent one is mentioned in Construction 2020. Under the heading ‘Social Housing’ on page 14 it talks about how social housing is important then says this ‘It is estimated that in the region of 5,000 new Social Housing units will be provided in 2014 through leasing and existing capital programmes. This includes completion of mortgage-to-rent arrangements’.

Translation: repossessed houses will help create social housing supply. It won’t add supply, it will just re-profile properties from one classification into another meaning the list length stays about the same for these properties. This merely lets people who borrowed leap frog the 90,000+ people in the queue ahead of them into getting a home (which used to be theirs) reclassified into social housing.

The ‘Mortgage to Rent‘ scheme came from the inter-departmental group …

Read More

China’s empty city: Is the house of cards set to fall?

While the world and its brother thinks China will be running the world within the next decade, we have felt to the contrary for some time, while the opportunity was massive in the last decade, China of the present day has simply too many political and social issues to overcome to reach the next level without coming clean on many issues such as labour rights, human rights, property rights, and a fair currency. China is also the only country that knows its GDP four years in advance, and while we are huge fans of the transformation China has undergone since the 60’s it just doesn’t sit well with our belief in free markets to accept that you can engineer an economy on an ongoing basis.

We’ve been wrong before, so disagree with passion, but at the same time, you can’t ignore the fact that China has some massive hurdles to overcome if they are truly to be a lasting world power, those matters are simply too diverse – from environmental issues to how minorities are dealt with – to …

Read More

Chinese Property and US Manufacturing, what does it mean for 2008?

There are times when you get caught by surprise, there are times when you get dazzled by the headlights but you know something is coming then there are times when you see the smoke signals in the distance and there is plenty of advance warning. Chinese REITS are of the latter ilk. In fact the whole Chinese Stock Market at 37 times earnings seems to represent a giant bubble.

The acronym BRIC (Brazil, Russia, India, China) has been the road to profit for many investment managers but this all looks set to change. The growth in developing markets has attracted speculative money, and lots of it, China would be the most extreme example of this, their largest companies are now ranked in the top ten in the world (by market capitalization), as far as I am currently concerned now is the time to pull out.

Since the beginning of November Hong Kong property stocks have fallen 40% mostly in the area of REIT’s.

[REIT’s: This stands for ‘Real Estate Investment Trust’, this is an investment vehicle that is used for …

Read More