Blog – McCarthy & Associates – Galway Talks, 21/07/2016

Issue:  The IMF know more than our Central Bank!

Comment:  It is interesting to see that the IMF have come out with a comment on the Irish Property Market which seems to indicate that they have a better handle on what is happening than the Central Bank.  Basically their view is that the Central Bank rules are hindering the development of the market here.  Most domestic commentators have pointed this out to the powers that be in the Central Bank, but they do not seem to want to listen.  It remains to be seen whether the IMF make any difference.

Issue:  Will the Government’s New Housing Initiative help the plight of First Time Buyers?

Comment:  In the last few days the Government has announced a new housing initiative which has provided scant details on how they plan to help FirstTime Buyers.  It appears that this is only a wishful thinking document as they have said that they will defer announcing details on the financial incentives for FirstTime Buyers until the next Budget.

How they think that this is going to stimulate a FirstTime Buyer into purchasing a house, when they have no idea what incentives are going to be introduced, defies logic!

Question:  Is now a good time to buy or invest in the UK?

Comment:  Despite the issues surrounding the recent Brexit vote, you need to be aware that investing outside of the EuroZone means that you are taking on a currency risk, as well as the risk of whatever you are putting your money into.  If you are a very risk orientated person and content with this exposure it may be suitable for you.

Question:  I invested in a property in Turkey some time ago and I am now concerned about the current situation there.  Have you any thoughts?

Comment:  As you are aware the recent political turmoil in Turkey has seen a considerable drop in Tourism numbers, adversely affecting holiday properties such as yours.  As with most crisis, now is not the time you should be considering disposing of this property, if that is what is in your mind.  Hopefully you can continue to weather the storm for the next year or two and wait until the market picks up.