Blog – McCarthy & Associates – Galway Talks, 15/01/2015

discussionIssue: Impact of Central Bank rules on mortgages
Comment: Whilst the Central Bank has made no announcement yet regarding their new lending limits for mortgages, it is clear that uncertainty has been created in the property market. It is essential that they clarify the position as quickly as possible.
Recent figures have confirmed a considerable drop in the number of owner-occupiers in Ireland, which once had the highest rate in Europe. This is because a lot of people are stuck in the rental market and are unable or unwilling to purchase a home. There is no doubt that this situation needs to change as it is causing increasing rents and the issue of under supply of new homes needs to be addressed.

Question: How long does a Will last?
Comment: There is no time limit on a Will and remains in force until you depart this earth! If you made a Will some years ago and you are unhappy with the content then you need to contact a solicitor to update it.
There is a misconception among some people that you need to change a Will every time your assets change i.e. you sell one house and buy another. This is not the case as most Wills state that you bequeath whatever assets you have proportionately to your beneficiaries. Listing a particular asset is only necessary if you have a desire for one beneficiary i.e. Son or Daughter to inherit same.

Question: I am looking to finance my car through a motor dealer, are there any catches in this?
Answer: Obviously with any financial arrangement you enter into you need to check the terms very carefully. Thankfully we have seen the development in Ireland recently of various lease/personal contract plans for purchasing cars. Some of these are far more beneficial than utilizing your own funds or getting a term loan. As we all know a car is probably the worst depreciating asset we can own. It has become much more popular in other countries to lease rather than own tour vehicle.

Question: I am looking to start a Personal Pension, but find myself incredibly confused with the array of options available, what do you recommend to clarify matters for myself?
Answer: It is not surprising that you feel confused as there are 100’s of funds available. In order to cut through the ‘mire’ of options, the only way to do this is to get professional advice. A good Financial Advisor will tailor a fund to your needs and take the ‘hassle’ out of doing it yourself.

Question: How do you select a Financial Advisor?
Answer: Firstly, all Financial Advisors have to be registered with the Central Bank. I believe that the credibility and services an advisor provides needs to be broad enough for your needs, not limited to just life/pensions.
The extent of the services they provide will be apparent from reviewing their website and also through phoning the advisor.