By Sean Moriarty
A Killarney restaurateur has warned that Killarney could lose out to Northern Irish destinations as a result of the Government’s continued stance on indoor dining.
A recent report in a national daily newspaper said that people from the Republic of Ireland are travelling north of the border to enjoy indoor dining and pubs while they remain closed down south.
Deirdre Browne, who is a partner in Murphy Brownes on High St, says this flies in the face of the Government’s promotion of staycationing this summer and that Killarney could loose its status as Ireland’s top tourism destination as a result.
“People just want normality at this stage,” she told the Killarney Advertiser. “If you saw the rain that fell over the weekend,it just does not make sense.”
The Irish Independent article said over half of the people visiting Belfast on a recent weekend were from the Republic of Ireland and many had travelled from Cork and Kerry.
“We need to be allowed open in a controlled manner and make Killarney the holiday destination it is supposed to be,” she added.
She was one of organisers behind last Thursday's protest outside Killarney Town Hall where local hospitality and allied sector workers voiced their anger at the prolonged closures.
“People were thrilled that we did it,” she added. “They saw that we stood up, that we had a voice.”
Housing Will Never Be The Same
Last week I wrote about the pathetic investment options out there for Irish investors. Despite high ongoing fees (mortgage, maintenance, insurance etc.) and the actual headache of being a landlord, […]
Last week I wrote about the pathetic investment options out there for Irish investors.
Despite high ongoing fees (mortgage, maintenance, insurance etc.) and the actual headache of being a landlord, it’s easy to see why real estate functioned as the de facto investment portfolio for an entire generation.
Wealth creation was a rinse-and-repeat function where couples put money away until they had enough for the ‘next house’. As a result, we have an economy where 70% of household wealth is tied up in real estate.
Driven by the profits it created, Ireland became obsessed with owning real estate.
But real estate as an investment won’t be nearly as successful for our generation. (If you are able to get a house, that is)
All you have to do is look at the anecdotal evidence all around us to confirm this.
My parents bought the house they currently live in for 30k (pounds) 35 years ago. The house is now worth roughly 450k.
I typically despise these back-of-the-envelope calculations when It comes to property, given the endless variables and ongoing costs involved, but bear with me.
That’s a gross return of 15 times the original value. Now there are upgrades, a change in currency and other adjustments to consider here, so for argument’s sake, let’s call it 10X.
To achieve the same level of growth over the next 35 years, you would be left paying 4,500,000 euros for what is a pretty modest house.
Sure, we will still see property prices increase over time, but the rate of growth won’t be anywhere near as meaningful for one simple reason.
Over the last 30 years, real economic growth has been stagnant, yet Ireland has experienced enviable nominal growth.
How did we manage it?
We created imaginary wealth.
We pushed interest rates lower and lower to stimulate economic growth.
And it worked.
After all, if you make 100k/year you can probably afford a 400k mortgage at 4%. At 2%, with the same 100k/year salary you can now take on 600k in debt.
So, were we getting richer, or was the debt just easier to afford?
Where do we go from here?
We have now squeezed interest rates as low as they can go.
The house price appreciation we have seen was justifiable because the mortgage rates on housing continued to fall in recent decades. This allowed people to take on more debt without severely impacting their ability to repay that debt.
If we go back to my parents, they were paying 14% on their mortgage. Mortgage rates are currently between 2 to 3%.
A relentless drop in interest rates gave way to higher and higher prices for houses, but interest rates are now on the floor.
The juice has been squeezed.
In fact, the trend has started to reverse, with rates expected to rise 1.5% in the first half of 2023
Be mindful that the same credit expansion cannot happen again.
How the next generation thinks about their investment options has to change.
Banks offering 0% returns for the use of your money and a housing ladder you can’t get on are not your only two options.
If you need help creating your own investment portfolio, just reach out to me at mike@theislandinvestor or simply scan the QR code above.
Biddies performance celebrates St Brigid
Two local Biddies groups performed at Muckross House as part of St Brigid’s Day celebrations in aid of Kerry Parents and Friends Association. The Killarney Parents and Friends Biddy Group – formerly […]
Two local Biddies groups performed at Muckross House as part of St Brigid’s Day celebrations in aid of Kerry Parents and Friends Association.
The Killarney Parents and Friends Biddy Group – formerly known as the Beaufort Biddy Group – and Kilgobnet Biddies came together for the event.
The tradition of the Biddies is one of the oldest and most colourful customs in Ireland, a blend of pagan and Christian pageantry, held on February 1 each year, heralding the beginning of springtime and honouring St Bríd the patron saint of the farming community.
Master traditional craftsman, Pat Broderick, at Muckross House, was also part of St Brigid’s Day celebrations, making a St Brigid’s Cross as part of the traditions.
Housing Will Never Be The Same
Last week I wrote about the pathetic investment options out there for Irish investors. Despite high ongoing fees (mortgage, maintenance,...
Biddies performance celebrates St Brigid
Two local Biddies groups performed at Muckross House as part of St Brigid’s Day celebrations in aid of Kerry Parents and Friends...
Arrest made in Miriam Burns murder case
By Sean Moriarty Gardai have arrested a man in his 50s in connection with the death of Miriam Burns. Ms...
Great turnout at Kerry Clubs Fair
Over 600 people attended the Kerry Clubs Fair at Killarney Racecourse on Sunday to see exhibitions by a wide variety...
Why it’s important to have travel insurance
By John Healy of Healy Insurances Spring is a wonderful time to dream of holidays and trips that could happen...
Paudie Clifford returns and scores wondergoal as Kerry dismantle Monaghan
Adam Moynihan reports from the Fitzgerald Stadium National League Division 1 Kerry 3-16 Monaghan 0-14 HT: Kerry 0-10 Monaghan 0-6...
St Paul’s ladies’ contribution to club honoured
By Sean Moriarty St Paul’s Basketball club recognised the contribution of its ladies’ players during their National Basketball League home...
Handball continues to shine in Killarney
By Con Dennehy Handball in the Killarney region can look back at 2022 as a year of continued progress, the...
Kerry base confirmed for Rás Mumhan
By Sean Moriarty Preliminary details of the Rás Mumhan have been announced by Cycling Munster. The four-day international cycle race...
Cronin’s title fight to be streamed at Jimmy Brien’s Bar
Kevin Cronin is aiming to make history on Saturday night by becoming the first Kerry man to win a professional...