Property & Finance
Making the first step on to the property ladder

This week Step 1 is The Deposit. Before we decide to jump on the property ladder we need to have sufficient funds together for the deposit.
Steps to buying that first home:
THE DEPOSIT
Saving the deposit for a new home has become one of the biggest challenges facing young people today. First-time buyers typically need a deposit equivalent to a tenth of the value of their home and with the average asking price of a home nationwide being almost €250,000, that is a significant hurdle.
Soaring house prices have added to the challenge - the longer it takes to get the deposit together for a home, the more likely a house hunter is to be priced out of a particular area.
So how do you save that deposit as quickly as possible?
MOVE BACK HOME
With rents soaring it could take decades to save up the deposit for a home and for this reason, it makes sense to move back home with your parents if saving for a deposit.
ASK FOR HELP
Many young buyers have turned to their parents for help with the house deposit. The vast majority of first-time buyers are getting gifts from their parents towards the deposit.
Lenders require you to have a gift letter from the donor. That letter specifies the sum of money being gifted, the name of the donor, and a signature from the donor confirming that you do not need to repay the money gifted - and that the donor has no recourse to the property.
START SAVING NOW
The earlier you start to save up regularly for your deposit, and the fussier you are about the account you choose, the better. Boost the amount you can save by cutting back on luxuries and leading a cheaper lifestyle. Save into an account which pays better interest than normal. Regular savings accounts typically pay better interest than lump sum deposit accounts - as long as you choose an account which pays more than one percent interest.
CONSIDER OTHER AREAS
Many first-time buyers have their hearts set on buying in a particular area - but are quickly forced to look elsewhere due to soaring prices. Moving to the satellite towns and villages could make it easier to afford a home, and get the deposit together. Know what you're getting into before making such a move though. Think about how you will commute to work - and how practical the commute is.
Be aware too that moving away from family and friends can be difficult. If you have children, or are thinking of having children, ask what kind of support network you will have around you in your home.
News
Five questions to ask yourself before buying a stock
By Michael O’Connor, theislandinvestor.com When it comes to investing, nothing is certain. There are no perfect stocks to buy because there’s no way of predicting the future with 100% accuracy. […]

By Michael O’Connor, theislandinvestor.com
When it comes to investing, nothing is certain.
There are no perfect stocks to buy because there’s no way of predicting the future with 100% accuracy.
The truth is, investing is hard, and building a portfolio of top stocks that beat the market is something that even financial professionals have trouble doing consistently.
For most people, investing in index funds is the perfect hands-off approach, providing broad exposure to the stock market at a very low fee. Even my own personal portfolio is made up of roughly 70% ETFs despite the fact I invest in the market for a living.
But I believe some stock picking is a good strategy for many hands-on people.
Taking a small portion of your overall portfolio and diligently selecting a small number of companies to invest in gives you an opportunity to learn about the investing process and fully understand the businesses you are investing in, which helps to build conviction in your positions.
From a psychological standpoint “collector’s instinct” kicks in, enabling people to participate and invest more money over time.
Lastly, for Irish investors, there are tax benefits to consider. If you invest in individual stocks, you are taxed at the CGT rate of 33%, and the first €1,270 of your gains are exempt from CGT each year. When investing in index funds or ETFs, you are taxed at the exit tax rate of 41% with no annual exemption.
For those interested in picking individual stocks, here are five questions you should ask yourself before investing in any company.
Do I understand the business?
Too many people invest in businesses they don’t understand because it ‘sounds good’. If you have no idea how the company works, you won’t have the conviction needed to hold onto the stock when an inevitable downturn comes.
Can the balance sheet withstand severe, temporary adversity?
This seems obvious, but so many people invest in companies without understanding how much money a company holds and who they owe money to. Economic cycles are guaranteed. You must ensure that the company has enough cash-on-hand to avoid becoming obsolete when activity slows.
Will the company benefit from long-term trends?
Make sure the company will remain relevant into the future. If the stock is cheap now, it may be cheap for a reason.
Is the company enjoying profitable growth?
Not growth at all costs, but a combination of sustainable growth and value. All this information can be found online at sites like stratosphere.io.
What are the risk factors?
Is the company trying something new and untested? If yes, who are its competitors and how successful are they? If other players are more established, this company may have a tough time breaking into the market.
News
Benefit-In-Kind tax rules overturned for company cars
By John Healy of Healy Insurances Minister for Finance Michael McGrath has announced a temporary change for company-owned vehicles following a backlash from drivers whose Benefit-In-Kind (BIK) taxes increased substantially […]

By John Healy of Healy Insurances
Minister for Finance Michael McGrath has announced a temporary change for company-owned vehicles following a backlash from drivers whose Benefit-In-Kind (BIK) taxes increased substantially in January.
While the move to a CO2 based Benefit-In-Kind system, which incentivises the use of Electric Vehicles and lower emission cars, a significant number of employees with vehicles in the typical emissions range experienced large increases in their income tax liabilities since the start of 2023.
To address the issue, the Finance Minister has introduced a relief of €10,000 to be applied to the Original Market Value (OMV) of cars in Category A-D in order to reduce the amount of Benefit-In-Kind payable (this is not applicable to cars in Category E).
In effect, this means that, for the purposes of calculating BIK liability, employers may reduce the OMV by €10,000. This treatment will also apply to all vans and electric vehicles. For electric vehicles, the OMV deduction of €10,000 will be in addition to the existing relief of €35,000 that is currently available for EVs, meaning that the total relief for 2023 will be €45,000.
The upper limit in the highest mileage band is amended by way of a 4,000km reduction, so that the highest mileage band is now entered into at 48,001km.
These temporary measures will be retrospectively applied from 1 January 2023 and will remain in place until 31 December 2023. It is proposed to introduce the measures at Committee Stage of the Finance Bill 2023.
From an insurance perspective, if a vehicle is owned by a company then the motor policy in place must be in the company name and have full business use cover known as Class 2 cover. It is customary that the policy is on an open driving basis, usually aged 25 to 70. The cost for a company owned car policy can be higher than privately owned vehicles.
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