Blog – McCarthy & Associates – Galway Talks, 14/08/2014

galway-bayfmQuestion:  I have looked at a number of investments and they all are subject to DIRT.  Do you know of any others, so I can reduce any tax I might pay if I make money?

Answer:  In recent months a number of investments called Soft Capital Protection Bonds have been introduced.  Essentially these are bonds which provide an element of protection but are subject to a certain level of limited risk.

They have proven to be quite attractive for investors, who realize that they need to take some risk but do not want to be completely exposed to any potential downturn.  These bonds are also classed for Capital Gains Tax which means that the tax due on any gains would be 33% (less an annual tax free allowance of €1270 per person), as opposed to DIRT which is 41%.

We believe that these types of bonds could prove to be highly attractive in the longer term.

Question:  My bank is constantly contacting me trying to sell products.  Is there anything I can do about this?

Answer:  Once again this issue has arisen and I have dealt with it on many occasions.  My advice to you would be to tell your bank on no uncertain terms that you do not want to be subjected to ongoing sales pressure and to remove you from their marketing database.

Issue:  Recent research shows 50% of houses purchased funded with cash.

Comment:  It is interesting to note that recent research has shown that 50% of the houses purchased this year were paid for with cash.  The figures also confirmed that the level of mortgage lending is 50% below the level at which it should be.

If the property market is to continue to function in a normal manner, it is essential that the banks start to relax their lending criteria in order to help out first-time buyers looking to get a start.