Increase in population renting... ticking time bomb?

The Student

The Student wrote: »

Property offers better value if you are looking for a particular area. If you are looking for a particular area and no property becomes available at the point you need/want it at then what do you do?

You are correct incremental investment in the Stock Market is an option with a property investment I decide what I do with my investment and what decisions I want to make with it.

With Stocks and Shares as I am sure you are aware it is the majority/institutional investors who ultimately decide the direction of the company the shares are invested in not a small holding investor of which I would be classed.

If you feel stocks and shares are a good option then invest in them, I don't and as such don't want to invest in them. Each to their own strategy, it may work for you and not for me, it may work for me and not for you, it may work for both of us or neither of us. That's the risk we take as investors.

All that considered, you can't stand over "No investment opportunities other than property at the moment.."

The Student

Augeo wrote: »

All that considered, you can't stand over "No investment opportunities other than property at the moment.."

Fair comment I should have stated my view somewhat differently.

Claw Hammer

The Student wrote: »

People can afford to buy. Once you have your deposit you can buy. Stay at home, save for your deposit. You would be surprised how little you need to save on a weekly basis to get a deposit together. If you start saving an average of €40 a week from the age of 18 after 8 yrs you have over 18k multiply this by 2 people and you have a deposit of €36k.

An average of €40 a week is not much, obviously at 18 & 19 yrs old its a lot but not at 23yrs old, 24yrs old etc.

The number of people who say they can't afford to buy yet go on foreign holidays each year, have designer clothes, expensive mobile phones, TV packages never ceases to amaze me.

Life is all about sacrifices to get what you want.

A lot of people are in college under they're 23 or 24. After that, they often have to pay back loans incurred to pay for their education. Fat chance of having 18 K in the bank by the age of 26.

An_Toirpin

Augeo wrote: »

The Student wrote: »

Property offers better value if you are looking for a particular area. If you are looking for a particular area and no property becomes available at the point you need/want it at then what do you do?

You are correct incremental investment in the Stock Market is an option with a property investment I decide what I do with my investment and what decisions I want to make with it.

With Stocks and Shares as I am sure you are aware it is the majority/institutional investors who ultimately decide the direction of the company the shares are invested in not a small holding investor of which I would be classed.

If you feel stocks and shares are a good option then invest in them, I don't and as such don't want to invest in them. Each to their own strategy, it may work for you and not for me, it may work for me and not for you, it may work for both of us or neither of us. That's the risk we take as investors.

All that considered, you can't stand over "No investment opportunities other than property at the moment.."

There plent of other investment opptunities but painfuly convoluted taxes like Exit Tax and the lack of any incentives, really discourage entering stock market.

AndrewJRenko

An_Toirpin wrote: »

There plent of other investment opptunities but painfuly convoluted taxes like Exit Tax and the lack of any incentives, really discourage entering stock market.

What Exit Tax? Are you talking about CGT?


And what kind of 'incentives' would you expect - other than the incentive of making money on your investment? There are very significant incentives for employees to invest in stock purchase or stock option schemes.

An_Toirpin

AndrewJRenko wrote: »

An_Toirpin wrote: »

There plent of other investment opptunities but painfuly convoluted taxes like Exit Tax and the lack of any incentives, really discourage entering stock market.

What Exit Tax? Are you talking about CGT?


And what kind of 'incentives' would you expect - other than the incentive of making money on your investment? There are very significant incentives for employees to invest in stock purchase or stock option schemes.

The taxation of indivdiausl stocks is relatively high but straight forward with CGT but many people prefer to use funds and the system of fund taxation in Ireland is extremely high and painfully complicated to calculaute. While there is an argument for high taxes (although I disagree with), there is no argument for complicated taxes. It is often called the gross roll-up approach or exit tax.

As for intenives, there is good schemes for start up certainly but there is nothing for small timers. The capital gain exemption is €1,270 then 33% tax, while in the UK it is £11,700 then 10-28% . In Germany it is different but you have baout €800 of any interest tax free but you only pay 26% on excess.

AndrewJRenko

An_Toirpin wrote: »

The taxation of indivdiausl stocks is relatively high but straight forward with CGT but many people prefer to use funds and the system of fund taxation in Ireland is extremely high and painfully complicated to calculaute. While there is an argument for high taxes (although I disagree with), there is no argument for complicated taxes. It is often called the gross roll-up approach or exit tax.

As for intenives, there is good schemes for start up certainly but there is nothing for small timers. The capital gain exemption is €1,270 then 33% tax, while in the UK it is £11,700 then 10-28% . In Germany it is different but you have baout €800 of any interest tax free but you only pay 26% on excess.

The fund taxes are a matter for the fund, right? The investor doesn't have to do any calculations at all, afaik?

I'm really not sure why Govt should be providing 'incentives'. If you have the funds to invest, you're big enough to look after your own affairs. The incentive is the return on your investment.

An_Toirpin

AndrewJRenko wrote: »

An_Toirpin wrote: »

The taxation of indivdiausl stocks is relatively high but straight forward with CGT but many people prefer to use funds and the system of fund taxation in Ireland is extremely high and painfully complicated to calculaute. While there is an argument for high taxes (although I disagree with), there is no argument for complicated taxes. It is often called the gross roll-up approach or exit tax.

As for intenives, there is good schemes for start up certainly but there is nothing for small timers. The capital gain exemption is €1,270 then 33% tax, while in the UK it is £11,700 then 10-28% . In Germany it is different but you have baout €800 of any interest tax free but you only pay 26% on excess.

The fund taxes are a matter for the fund, right? The investor doesn't have to do any calculations at all, afaik?

I'm really not sure why Govt should be providing 'incentives'. If you have the funds to invest, you're big enough to look after your own affairs. The incentive is the return on your investment.

Not necessarily. Products by Irish life or Zurich funds would deduct for you but most funds on the market require you to do the taxes yourself. We have all sorts of incentives for home ownership, pensions, and low earners. This is exactly the same. The premise being if you encourage people to be financially self-reliant they will not be a  burden on the state. Either way, there is an onus to level the playing field whether you remove all incentives/ level out taxes or make them more evenly available.