Blog – David McCarthy – Galway Talks, 27/02/2014

galway-bayfmIssue:  High number of people with no will.

Comments:  From my own experience in dealing with clients it is shocking the number of people who do not have a will.  It appears that it’s an issue which is generally put on the “long finger” and not considered to be a priority.

We all have something to leave and I would stress it makes it easier for your family, in the event of your death, if there is a will in place.

Question:  What is your opinion of purchasing property as an investment?

Answer:  Despite the downturn it appears that we still have this love affair in Ireland with property.  However, over the last number of years there have been so many changes in relation to the taxation of rental income and increased ongoing costs, it is important that you do your homework. 

If you are looking at a buy-to-let property, make sure that you sit down and work out all of the costs which will be deducted from the rental income and then determine be net return you will receive.  Property is a risk investment and needs to be considered as such.  Renting is not “hassle free” and some people have had bad experiences.

To summarize, it is important that you do your homework and not be blinded by the low level of property prices, so as you can make a rational decision.

Question:  Car finance – Is it better to borrow from a bank or get finance through a motor dealer?

Answer:  There are some very imaginative packages through motor dealers, who have had to provide finance due to the lack of lending by the banks.  Some of these involve a variety of leasing/lease purchase packages. The interest rates charged by the banks are particularly high, assuming that you can get finance from them.

If a bank is offering to finance your car, compare the packages from the motor dealer and decide which is the most appropriate for your needs.

Question:  I missed 3 months premium on a life policy and it has now been cancelled.  Is there anything I can do about this?

Answer:  Unfortunately, if you miss a number of premiums on a life policy it is cancelled and you cannot reinstate it.  You would have received correspondence from the Life Company advising you about the unpaid premiums and that the policy will be cancelled.  Depending on your age and health, it may be far more expensive for you to take out new cover but this is your only option.