Money Times - August 1, 2017

Posted by Jill Kerby on August 01 2017 @ 09:00



The Irish housing crisis has affected pretty much every age group except one – older, late middle-aged people and retirees, the vast majority of the latter - 92% - who already live in owner-occupied houses.

Not only do the majority of retirees have a place of their own, but 83% own their homes outright, with just 8% renting, according to Tilda, the TCD research group into our ageing population.

And while half of these properties have quality issues that need to be addressed, Tilda, in its 2016 housing report confirm what most of us know already: there is a serious and growing mismatch in housing occupancy in Ireland, with hundreds of thousands of older, single people and couples residing in properties that are more suited to families.

A functioning property market is one that keeps the flow of all types of property moving between the generations. Instead, we have a market in most of our larger cities that is forcing prices relentlessly upwards for people wanting to buy, or who rent. The solution is to start building more appropriate properties for the rapidly ageing – and demanding - cohorts of current retirees and ‘baby boomers’ who are keen to downsize even before they reach 65.

Nearly 24 years ago, my husband and I moved from a small, two-bedroom starter home in Dublin’s city centre to a larger, Victorian terraced property about a mile away.

It has served its purpose. The Child is about to fly the nest (we hope permanently) and the next logical step is to downsize and let a new family upsize into this bigger house. With its proceeds, we would buy (or even rent on a long term lease) something smaller, using any balance to boost our part-time earnings and retirement income.

Unfortunately, this virtuous property circle has broken down. Just like everyone else looking for a home, there’s a chronic lack of suitable and decent value smaller properties in or around this neighbourhood.

I admire people who intend to move to the country in their retirement thus almost guaranteed to maximise their dual goal – a nice, smaller place to live and money in the bank for their old age.

But the countryside isn’t for us. We are privileged to live in a very mixed neighbourhood of Victorian and Edwardian terraces, private semi-d’s built in the 1930s and 40s, privatised council houses from the 1950s and 60s and rather too many dubiously constructed apartment blocks that went up in the boom years, but are lacking any storage for suitcases, let alone boxes of Christmas decorations. Cash investors-cum-landlords are buying a disproportionate number of the properties that are for sale…and I believe its just a matter of time before this latest price bubble meets its pin. 

There’s also no point fighting city hall.

The down-sizing supply roadblock for already privileged older homeowners is not a priority. No one cares that ‘baby boomers’ and home owning retirees can’t find the perfect smaller house or apartment in their neighbourhood.

But that doesn’t mean that there are no options other than cashing in and moving to the country (or to a sunnier country like Spain, or the bargain basement that is Greece…)

Here are three ideas that I’m checking out right now…

1) Turn a larger, older property into a “duplex” with two self-contained units. Live on the bottom floor and sell the top floor. You shouldn’t have trouble selling the upstairs to a singleton, downsizing retired couple who want to stay in the city or even a small family (especially if you have a convertible attic). You get to stay put without all the responsibilities of a large property.

The downside is securing planning permission and refurbishment costs, etc.

2) Convert part of the house to a self-contained rental apartment. You get to downsize and still own the entire asset.

The downside is cost of refurbishment, the inconvenience and costs of being a landlord and big income tax liability: you can only claim 80% tax relief on allowable expenses. About half your rent could disappear in tax.

3) Upgrade the house but rent out that spare floor (once you move downstairs) under the Rent a Room scheme and earn up to €14,000 tax free.

“This certainly appears to be the best option,” says (my) financial adviser and planner Marc Westlake of Global Wealth Management. “Earning €14,000 tax free from renting rooms in your home, or even self-contained flat [in an attic, basement or unused floor] is a no-brainer.”

The Rent-a-Room scheme is, ironically, just another roadblock in helping to release much needed family homes. But until the supply shortage is comprehensively resolved, it may very well become the default option for the growing number of home-owners who want or need to downsize.

Get a good team of advisers together if you decide to downsize, including your financial and tax adviser and solicitor. Check local planning regulations. (See www.citizensinformation.ie then search Rent a Room Scheme.)


PORTFOLIOMETRIX IRELAND…a new era of personalized investment portfolios

14 Fitzwilliam Square Dublin 2  +353 1 539 7244   info@portfoliometrix.ie

Fermat Point Limited, trading as PortfolioMetrix Ireland, is regulated by the Central Bank of Ireland.


9 comment(s)

  1. Harvey Lee
    I Never Beleived in Chester Brian Loan Company Until now.....(Brianloancompany@yahoo.com) Hello All, I was really so downcast after losing so much and facing financial difficulties, no one to help me and all i could do was to just seat and watch my business going down and almost losing my son to an illness. But never the less i meet an old college mate who told me about the loan he got from Chester Brian Loan Company and until now the company have assisted so many of his friends seeking a loan. So i told him that getting a loan any more is not my style because of the disappointment from my bank and other loan company i trusted but he insisted i apply for it and now i can now boost of restoring my company back to its full glory. i will keep on testifying on behalf of Chester Brain Loan because they have made me to be a man again. So if interested in acquiring a loan of any kind email them today via: {Brianloancompany@yahoo.com } OR text (803) 373-2162 .Am Harvey Lee from United States of America.
  2. Sheelah Ryan
    Hello Every One Out Here Sheelah Ryan, I'm from United Kingdom (GB), London. This is certainly a shocking and a genuine live Testimony!!!! It was hard for me to believe when i saw a comment on the internet regarding how Dr Iyaryi help people winning lottery by sending them the winning numbers. This winning numbers are 100% guarantee that you must win the lottery. I give it a try and i won ($55 Million Pounds). My dreams came through when i email Dr Iyaryi i told him i need the lottery numbers. i have come a long way spending money on ticket just to make sure i win. But i never know that winning was so easy until the day i meant the spell caster online which so many people has talked about that he is very great in casting lottery spell, so i decide to give it a try.I contacted this man and he did a perfect spell and he gave me the winning lottery numbers. I won (Fifty Five Millions Pounds) Dr Iyaryi truly you are the best, with these man you can win millions of money through lottery. once again i say very big thanks to you sir for helping me to win the lottery, and please sir keep your good work because people need your help in their lives Email him: driayaryi2012@hotmail.com or And also Reach him on WhatsApp Number: +2349057915709 Thanks Dr. Iyaryi
  3. Osman Lender
    Are you looking for quick an urgent loan no collateral required with relatively low interest rate as low as 2%? We offer business loan, personal loan, home loan, auto loan,student loan, debt shortest time possible, contact our specialist for advice and finance planning. If you need a quick loan contact us via Email housingfinance22@gmail.com Contact us on whatspp +447513195409 Mr Osman Ibrahim
  4. charlie bean
    I`m Charlie Bean. I needed a loan to buy a house and I searched for a mortgage loan from all banks and I was denied and I loss hope of having my own house until I came across a post just as you reading my post now. I saw a post about a Financial Service Company who gives loan at 2% interest so I applied in STEAKLEY FINANCIAL SERVICES using their email steakleyfinancialservices@yahoo.com. And my loan was granted it was like a dream but was true and now am a owner of a house in Toronto and am paying the mortgage loan with no stress and I also requested if I can be granted a business loan and I was also granted. Now am living a happy life, I will advice you if you have an financial problems and you need money to settle it so you can pay with no stress just contact Steakley Financial Service at their email Steakleyfinancialservices@yahoo.com or number +1(512) 714-8010.
  5. Daan Sophia
    FINANCIAL BREAKTHROUGH Life indeed is GRACE, I'am Daan Sophia currently in California USA. I would like to share my experience with you guys on how I got a loan of $185,000.00 USD to clear my bank draft and start up a new business. It all started when i lost my home and belongings due to the bank draft I took to offset some bills and some personal needs. I became so desperate and began to seek for funds at all means. Luckily for me I heard a colleague of mine talking about this company, I got interested although i was scared of being scammed, I was compelled by my situation and had no choice than to seek advise from my friend regarding this very company and was given their contact number, getting intouch with them really made me skeptical due to my past experience with online lenders, little did i know this very Company "PROGRESSIVE LOAN INC. was a godsent to me and my family and the entire Internet World, this company has been of great help to me and some of my colleague and today am a proud owner of well organized business and responsibilities are well handled all thanks to Josef Lewis of (progresiveloan@yahoo.com).. So if really you are genuinely in need of a loan either to expand or start up your own business or in any form of financial difficulty, i advise you give Mr Josef Lewis of Progressive loan the opportunity of financial upliftment in your life Email: progresiveloan@yahoo.com OR Call/Text +1(603) 786-7565 and not fall victim of online scam in the name of getting a loan. thanks
  6. Dr. Elias Garrett
    DO YOU WANT A PERSONAL/BUSINESS/INVESTMENT LOAN? We have provided over $10 Billion in business loans to over 30,000 business owners just like you. We use our own designated risk technology to provide you with the right business loan so you can grow your business. Our services are fast and reliable, loans are approved within 24 hours of successful application. We offer loans from a minimum range of $10,000 to a maximum of $500 million. Do you find yourself in a bit of trouble with unpaid bills and don't know which way to go or where to turn? What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? Dr. Elias Garrett Loan Home is the answer. Reduce your payments to ease the strain on your monthly expenses. Email (dr.eliasgarrettloaninvestment@gmail.com) DO YOU NEED 100% FINANCE? we give out loans with an affordable interest rate of 2% DR. ELIAS GARRETT LOAN HOME, (dr.eliasgarrettloaninvestment@gmail.com) aims is to provide Excellent Professional Financial Services. Our services include the following: *Truck Loans * Personal Loans * Debt consolidation loans * Car Loans * Business Loans * Education Loans * Mortgage *Refinancing Loans * Home Loans We give you loan with an affordable interest rate of 2% and loan duration of 1 to 30 years to pay back the loan (secure and unsecured). Do not keep your financial problems to yourself in order for you not to be debt master or financial stress up, which is why you must contact us quickly for a solution to your financial problems. It will be a great joy to us when you are financially stable. Email (dr.eliasgarrettloaninvestment@gmail.com) NOTE:Bear in mind that it will only take less than 24 Hours to process your file is 100% Guaranteed no matter your Credit Score. Yours Sincerely, Dr. Elias Garrett +1 (347) 609-4787 We are certified and your privacy is 100% safe with us. Worry no more about your loans or finances. Get your instant loan approval
  7. Mrs Rose
    i got $78,000 loan from this email roseberryfin02@gmail.com he is reputable, you can give him a try…..
  8. Larry Frank
    Are you looking for a loan to clear off your debt and start up your own Business? have you being going all over yet not able to get a legit loan Company that will loan you? Here is your final solution, We can give you any amount you need at 2% provided you are going to pay back within the period of time given without any problem.Apply now and contact us for more details via email below. Email: frankworld.4563@gmail.com
  9. George Mason
    BEST AVAILABLE WAY TO FINANCEIAL FREEDOM {upstoxfunding@yahoo.com} Are you looking for financial freedom? Are you in debt, you need a loan to start a new business? Or you collapse financially, do you need a loan to buy a car or a house? Have you ever been rejected by your bank in ever finance? You want to improve your financial? You need a loan to pay off your bills pay off? No more looking, we welcome you for an opportunity to get all types of loans at a very affordable 3% interest rate for others. For information, contact us now by email at: {upstoxfunding@yahoo.com} Do you have a bad credit? Do you need money to pay bills? Is it necessary to start a new business? Do you have an unfinished project due to poor funding? Do you need money to invest in any specialty that will benefit you? And you do not know what to do. We offer the following loans;both Personal loans [secure and unsecured], Business loans [secure and unsecured] ,combination loans ,Student loans,Consolidation loans and so many others. Company name: UPSTOX FUNDING Company Email: upstoxfunding@yahoo.com Text/Call :(302) 273-5794
Leave a comment

Subscribe to Blog