By Ted Healy of DNG TED HEALY
It has been highlighted this week that the number of termination notices issued by landlords to tenants has risen by 58% in the first six months of the year compared to the previous six months.
There were 2,913 termination notices issued in the first six months of this year compared to 1,845 in the last six months of 2021.
It is reported that 55% of those notices were for the purpose of sale of the property.
A ban on evictions during lockdown periods during the COVID-19 pandemic lowered the number of termination notices. However, the eviction moratorium was lifted in April 2021 and numbers have been rising significantly since then.
The figures, released by the Residential Tenancies Board, have been described as “very alarming and require urgent action”.
They highlight the ongoing crisis in the rental sector and make for stark reading. At the time of writing only four properties were advertised as being available for rent in Killarney on Daft.ie.
The exodus of private landlords from the market is a real concern and needs to be addressed. Landlords exiting the market in greatest numbers at present are those that in the past had charged rents that were less than market rates and are now only able to minimally increase rent on their properties because they are subject to Rent Pressure Zone rules.
The Government has extended Rent Pressure Zones until the end of 2024 and has prohibited any rent increase in a Rent Pressure Zone from exceeding general inflation or two percent, whichever is lower.
However, more needs to be done to entice private landlords to stay in the market and supply of available properties needs to be increased.
The Irish investment market is pathetic
By Michael O’Connor, theislandinvestor.com I lived abroad for years, so all the investment strategies I created were typically outside of Irish tax considerations. But over the last few weeks I […]
By Michael O’Connor, theislandinvestor.com
I lived abroad for years, so all the investment strategies I created were typically outside of Irish tax considerations.
But over the last few weeks I have been putting together several investment strategies for Irish-domiciled clients. It has been eye-opening, to say the least.
In short, most of the Irish market appears to be dominated by a handful of life insurance companies that offer ‘wrapped’ Multi Asset Funds. This means they offer a basket of stocks, bonds, property etc., all within one investment.
Irish Life’s MAPs 4 multi-asset fund states a standard annual management charge of 1.15%. A bit on the higher side for my liking, but this is still manageable.
But when you dig a little deeper, the KID documents (where all fees have to be fully disclosed as part of UCITS regulations) show the fee as 2.2%.
Double the quoted price
As an added bonus, they lock your money up for seven years, where an early encashment charge is waiting for those who wish to withdraw their money early. That’s right, they charge YOU for making your money inaccessible.
This lock-up period is a shrewd business tactic. An exit charge is an excellent way to ensure customers don’t leave when they realise how poor the performance is.
Too late, you’re trapped.
Fees become more digestible provided the performance is strong, but unfortunately, the misery continues.
The Irish Life MAPS 4 Portfolio has an annual return of 1.63% a year over the last five years. Granted, this was a challenging market climate to navigate, but falling below even the lowest expectations of inflation means that this fund has returned negative real returns after inflation over the last five years.
A similar 60/40 portfolio made up of passive index funds (S&P 500 and US T bonds) would have returned roughly 6.5% a year over the same period for a fee of roughly 0.1%.
We can go round and round in circles regarding the ‘risk adjusted’ approach and the added ‘diversification’ of the multi-asset fund versus the 60/40 portfolio I have shown. But the reality is much of this so-called diversification is over-engineering for an extra cost for many long term investors.
So, how can such pathetic offerings still exist in a system where low-cost operators such as De Giro are providing endless ETF options and commission-free trades that provide access to market returns at a fraction of the price?
Two reasons spring to mind
Firstly, the Irish retail investment scene is built on a financial broker commission system where unsuspecting customers are shoved into these products by ‘financial planners’ who receive kickbacks and commissions from these investment companies. You think you’re getting free investment advice; believe me, you’re not.
Second, the tax treatment of ETF structures is comical in Ireland, and US ETFs aren’t even an investment option. A 41% exit tax and an eight-year deemed disposal rule leaves investors stuck between a rock and a hard place.
Choose an overpriced, underperforming product that locks your money away for multiple years or choose the cheaper, better-performing product and suffer the tax consequences.
Bizarrely, investors are forced to make decisions based on preferential tax treatment rather than on the underlying investment’s merits.
I have gone into much more detail on the tax treatment and investment options in Ireland on my website. Just scan the QR code.
If you would like me to independently review your investment portfolio, just send me an email at firstname.lastname@example.org.
Rebel lights delight for Killarney star
By Con Dennehy The continued growth, development and participation of women’s handball in East Kerry was rewarded at the weekend when Cork hosted ‘She’s Ace’, the prestigious All Ladies Handball […]
By Con Dennehy
The continued growth, development and participation of women’s handball in East Kerry was rewarded at the weekend when Cork hosted ‘She’s Ace’, the prestigious All Ladies Handball championships.
Attracting all the leading players in Ireland, it was Sarah Dineen, the Spa/Killarney player who shot out the Rebel lights in Conna with a phenomenal display of handball.
Competing in the highly competitive Ladies Challenger championship, the Killarney player, who took up the sport just 18 months ago, had the perfect start in the competition defeating the home town favourite Agnes Hurley from Conna on a 21-20 scoreline following an energy sapping and close encounter that hung in the balance to the final ace.
In her second game she took on the challenge of Nolwenn Even from St Brigids where her skill, superior fitness and movement on the court resulted in the 21-12 victory and a place in the prestigious final.
“The final was always going to be a difficult game not least playing local girl Kate O’Riordan from Conna. I concentrated on my serve and kill shots which ensured we shared the aces early in the game. It was a difficult game with the home supporters out in force to cheer on their local hero. However, I played well and secured a 21-11 victory. This was the second time this title came to Spa Killarney following the 2022 win by Aoife Walsh in Northern Ireland,” said Sarah, who is currently chairperson of the Killarney Camogie Club.
A native of Westmeath, Sarah (46) runs a jewellery business in Killarney and lives in Rathmore. No stranger to competitive sport she played camogie for Westmeath and Leinster and also won an Intermediate championship Gaelic football medal in Westmeath.
The Irish investment market is pathetic
By Michael O’Connor, theislandinvestor.com I lived abroad for years, so all the investment strategies I created were typically outside...
Rebel lights delight for Killarney star
By Con Dennehy The continued growth, development and participation of women’s handball in East Kerry was rewarded at the weekend...
STEM Scholarship for outstanding female student
By Michelle Crean A Killarney student attending University College Cork has received a STEM scholarship. Annie O’Donoghue (22) who is in...
First camogie team launched at St Brigid’s
By Sean Moriarty St Brigid’s Secondary School in Killarney has launched the school’s first ever camogie team. The new team...
Government to examine 9% VAT rate
By Michelle Crean Finance Minister Michael McGrath has this week said that the Government will, in the coming weeks, examine...
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