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The one question that determines your future wealth

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Inflation is an inherently personal thing. We quantify it in general terms with headline figures, but don't be fooled. Inflation isn't the same for everyone.

In Ireland, the inflation rate has fallen over the past few months from 9.6% in July to 7.7% in December, but this doesn't mean that everyone's life is now 7.7% more expensive.

How inflation affects you will differ depending on your age, location, job, savings and investments.

There will be winners and losers: net buyers and net sellers.

Let's take an example.

You bought a house before 2020 vs. you're looking to buy a home in 2023.

For those who bought pre-2020:

Initial fixed rate at 3% or lower (many of these will be approaching their fixed rate cliff)
Up to 40% increase in home value since purchase
Your mortgage repayments have remained constant while the value of your home has increased dramatically.

Yes, you're paying more for eggs, but your debt as a percentage of household net worth is considerably lower.

You're wealthier now than you were before the pandemic, in both absolute and relative terms, due to the inflation tied to your most significant asset.

Over two thirds of the Irish population have a mortgage or own their home outright.

For many of these, inflation has been a net positive due to the housing effect - a wealth-creation event.

For those looking to buy a home now, the past three years have created a very different scenario.

Wealth destruction

According to the Central Statistics Office, the average house price index has gone from €293,000 to €359,000 since 2019, an increase of €66k. Mortgage rates are now starting to increase. This is set to continue as the ECB looks to raise its deposit rate to 3.5%. (ECB rates were negative in 2019). As such, recent inflation has had a materially negative impact on both the purchasing power of the savings accumulated to buy a house and the future debt burden that the mortgage represents. The same inflation. Two very different outcomes.

The property divide

This is the very essence of how wealth gaps materialise, playing out in real time at an accelerated pace.

Many factors drive wealth inequality in Ireland, but it's bizarre to think that the side of the wealth divide you find yourself on may be determined by simply asking the question.

Did you own a home before the pandemic started or not?

With 70% of Irish wealth tied up in housing, the wealth effect of rising house prices is particularly strong relative to the rest of the world.

Remedies

Don't just listen to the headline numbers. Figure out how inflation is affecting you personally.

Are you being crushed by rising prices, or are you a net benefactor as prices increase?

Everyone isn't on the same boat here. The sooner you realise this, the sooner you can do something about it.

Want investment advice and personal finance tips that won't bore you to death?

Join the one thousand plus subscribers by scanning the QR code or go to www.theislandinvestor.com.

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Missing Killarney chef located dead in UK

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Missing Killarney chef located dead in UK


A 34-year search for missing former Killarney chef Patrick (Patsy) O’Sullivan ended following confirmation that he was located deceased in the UK.


Patsy was 35 years old when last seen by relatives in Lombardstown, County Cork, during the Easter Bank Holiday weekend in April 1992. At the time of his disappearance, he was working as a chef in Waterville, having previously worked across several Killarney hotels. He was scheduled to attend a family Christening shortly after returning from Kerry, but never arrived.
Despite decades of public appeals, including features on RTÉ’s Crimecall, his location remained unknown.
Investigations revealed that Patsy moved to the UK and changed his name to Patrick Aldridge in 1995, adopting the surname of his partner who passed away in 2022. He passed away from natural causes on July 5, 2024, living just over an hour away from his brother who also passed away in the UK last year.
Speaking on Cork’s 96FM, his brother Jerry O’Sullivan confirmed the family finally received closure following renewed efforts led by Garda PJ Roche and investigating officers. He noted that while unanswered questions remain about why Patsy started over fresh, the family is grateful for the work that brought final answers.
An Garda Síochána confirmed the missing person case is closed and thanked the public for their assistance over the years.


IN MEMORY: Patrick (Patsy) O’Sullivan, a native of North Cork who worked as a chef in Killarney and Waterville, went missing in April 1992 and was located deceased in the UK. Photo: Garda Press Office.

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Speed cameras go live at Farranfore level crossing

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Speed cameras go live at Farranfore level crossing

An Garda Síochána, Iarnród Éireann, Transport Infrastructure Ireland, and Kerry County Council put new safety enforcement cameras into operation at the Farranfore level crossing this week.

The GoSafe system, which went live at 12pm on Tuesday, October 6, automatically detects vehicles running red lights or breaking the speed limit as they approach and cross the railway track.

Farranfore is only the second level crossing on the national rail network to feature the technology, following a trial at Merrion Gates in Dublin where driver compliance reached 99.7 per cent. Up to six crossing locations nationwide are slated to receive the units.

The system targets two distinct traffic violations. Proceeding past a stop line when red lights are flashing carries an automated Fixed Charge Notice of €80 and two penalty points, rising to five penalty points upon court conviction. Speeding violations trigger a €160 fine and three penalty points, which can increase to five points and fines up to €1,000 if prosecuted in court.

Iarnród Éireann highlighted excessive approach speed as a key safety factor at the Farranfore junction. Nationwide, 31 incidents involving vehicles or bicycles colliding with automated level crossing gates have occurred in 2026 to date, up from 23 in 2025.

Highlighting the risk to local road users, Road Safety Officer with Kerry County Council Declan Keogh said: : “The new safety cameras at Farranfore railway crossing serve as a dual-safety mechanism, for road users and for rail users and operators. I would urge all motorists to think twice before taking that chance to get across the railway line when the warning lights have activated and the barriers are lowering. All too often those chances have proved unsuccessful, with serious consequences.”

Iarnród Éireann Chief Executive Mary Considine noted that interfaces between road and rail traffic represent one of the primary safety risks on the network, adding that automated cameras encourage drivers to reduce speed and obey active signals.

Assistant Commissioner Ferry of the Garda National Roads Policing Bureau welcomed the joint venture, stating that technology-led enforcement will significantly assist in maintaining safety across shared transport networks.

50km/h zone enforced at Farranfore

Motorists traveling through Farranfore are reminded that the speed limit on the approach to and across the railway crossing is strictly 50km/h.

While automated safety systems enforce both signal compliance and vehicle speed, the 50km/h limit remains the maximum legal speed on the N22 section approaching the crossing gates.

The newly activated GoSafe cameras record vehicle speeds automatically in both directions. Any motorist detected exceeding the 50km/h threshold will automatically receive a €160 Fixed Charge Notice alongside three penalty points applied to their driving licence.

Local authorities and Gardaí advise drivers approaching Farranfore from both the Tralee and Killarney directions to adjust their driving speed early, monitor active signals, and prepare to stop safely when warning lights activate.

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