Blog-McCarthy & Associates Financial Consultants-Galway Talks, 29/05/2014

galway-bayfmIssue:  Rising property prices in Galway.

Comment:  It has been shown in recent weeks that rising rents are pointing to a sector of people, who are ‘trapped’ in the rental market, that really want to purchase their own home but cannot do so due to the difficulty in getting a mortgage. If the banks were lending at a level that they should be, then one should ask the question, why the Government has recently announced that they are looking at introducing a scheme which will assist banks to lend more money to first time buyers?  It remains to be seen how this scheme will operate in practice, but if it is introduced it will be a welcome boost for both the construction sector and first-time buyers.

Recently, some commentators have been pointing to the potential of a “property bubble”.   I believe that the last number of years has shows that the property market is dysfunctional property market due to the fact that there has not been normal activity from home buyers rather than investors.

 At the bottom of the market, it was only, those investors or people with cash, who were in a position to buy which resulted in disproportionately low prices in the market.

In Galway, a higher level of lending by the banks and further house supply should help, to not alone reduce rents, but also assist property prices over the next couple of years.

Issue:  Tracing your pension from previous employments.  In Britain an estimated €3.6 billion euro is sitting in lost pension accounts.

Comment: A frightening statistic from the UK recently, pointed to circa €3.6 billion in what they have described as “lost pensions”.  This relates to people, who have moved from one employment to another (possibly a number of times over the years) and forgot they have pension benefits from their previous employer.

Whilst this might sound like a very strange occurrence, it is likely to be the same in Ireland. 

It is vital to keep yourself updated on any pension benefits from previous employments.