Blog – McCarthy & Associates – Galway Talks, 12/11/2015

Issue: EU considers introducing new regulations to allow cross border loans, which could lead to lower interest rates.
Comment: The EU is looking seriously at the possibility of opening up the availability of financial services across member states. If this occurs it will allow Irish citizens to access a variety of financial products from EU banks incl. lending products like personal loans/credit cards or mortgages.
This is a complex area which will take time for the EU to review, however if the market is changed to allow greater access to European Banks, then we could expect lower interest rates on lending products.

Issue: New regulations for rental properties.
Comment: The Government announced a major overhaul of the rental sector earlier this week. The major change is the introduction of a 2 year freeze on rent increases and a 90 day notice to tenants of any change. Landlords will also have to produce documentary evidence, of other properties in the area which are more expensive, to justify any increase

At the moment if a Landlord intends to sell a property or rent it to a family member, they can do so after giving appropriate notice to a tenant. This has been altered and there is now a requirement for the landlord to provide documentary evidence to prove that they are disposing of the property.
Whilst some of these changes appear to be logical, history has shown that Government meddling in any free market usually leads to unforeseen problems and been shown to be ineffective.