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Brexit - The Urgent Need To Be Prepared

Where to now for Brexit?

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The Swings and Roundabouts

After a period of relative silence on the topic, Brexit has quickly become a hot conversation topic once more in recent weeks as Brexit talks begin to ramp up. Despite the constant chatter, however, there have been no official announcements or updates on what we can expect from a final Brexit decision. Naturally, this has caused an atmosphere of concern and uncertainty, particularly for our own minute island as questions about border issues, and difficulties in trade swarm around us and we remain uncertain about our place in all of this. As we have discussed recently however, many Irish companies appear to be thriving in this uncertainty and beginning the process of protecting their business against any potential fallout. Something we have learned from this continued confusion is that Irish companies show great resilience in the face of adversity and have attempted to learn the lessons enforced by the economic downturn.

Recently, there have been growing concerns about the impact Brexit could have on our already troubled housing sector. We have spoken at length in the past about the housing sector as rents continue to rise and many are being elbowed out of any attempts at gaining a foothold on the property ladder. It was announced this week that the Economic, Social and Research Institute (ESRI) believe that the country should make itself ready for Brexit to have an effect on housing, as they expect private sector construction to drop, encouraging the Government to invest more in social housing. It is also believed that rent increases will continue to spiral, leaving many more families in need of support. As well as the ESRI, the Nevin Economic Research Institute feels that housing issues will fluctuate massively following Brexit and that demand will reach an all-time high. It was reported this week that both bodies will present TDs with their findings on November 20th.

Head of Economics with the ESRI, Kieran McQuinn has stated that the Housing Assistance Payment may become the main income support for private renters in the wake of Brexit:

“If income and employment growth are slower than anticipated due to Brexit, the numbers of families that qualify for HAP over the coming years will likely be higher than currently expected,”

Mr McQuinn also believes that demand may decrease but that this may not have the expected positive implications. Meanwhile, the ERSI have highlighted that mortgage arrears remain an issue in Ireland, and that following Brexit, these arrears may continue to increase.

There is some mild good news on the horizon for prospective buyers, however as Mr McQuinn of ERSI has stated that Brexit may have the effect of slowing the increase of mortgage interests rates, which would in turn finally see some levels of affordability return to the Irish housing market.

Should you have any concerns, queries or require further information on these or any other business and financial matters please don’t hesitate to contact us we are always available to help.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

Remembering the Importance of Saving

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Don’t Break the (Piggy) Bank

As January gets into full swing and we all settle back into the daily grind of working life, some of our New Year resolutions may be left behind or pushed aside in favour of those resolutions promising more longevity or better return of investment. High on people’s lists of resolutions is often the vow to save more money in the coming year. Whilst the increasing cost of living might make this quite a difficult task, it is often one of the most rewarding resolutions as the results can be clear to see. We have spoken recently about some of our top tips for saving in the New Year, and it seems like you will not be alone in your savings endeavours.

The Bank of Ireland Savings and Investment Index, published on 15th January shows that over half of Irish consumers were regularly saving during the December period. December is of course a rather difficult time for savings, and this sentiment was also reflected in the findings. Tom McCabe, global investment strategist with Bank of Ireland Investment Markets was quoted as saying:

“”Irish sentiment towards savings and investments eased in December mainly as a result of a weaker outlook for the savings and investment environment. This may be temporary given recent trends in the index but could also be an early indication that savers are looking for better returns on their money and are willing to consider alternatives to their savings account.”

This shows that although Irish consumers are continuing to save, there is a lingering fear that savings are no longer generating enough of a return in their traditional savings methods. This may see a shift in the Irish market towards investments rather than traditional saving. The Index found that 34% of Irish consumers also invested regularly during the month of December, much like the savings findings this could be either temporary or indicative of a new trend in Irish savings.

Hinting towards this being a possible new Irish trend is the fact that investments were more prevalent in the younger generation with 39% of under 50s regularly investing whilst only 26% of over 50s were found to be investing during the same period. Perhaps unsurprisingly, investment numbers were higher in November than December, which is to be expected as December is often a month in which consumers have less disposable income.

These findings also found that the Irish population have a strong preference towards saving should they encounter any windfall gain, but also a new move towards considering investments with windfall amounts.

Should you require any help or guidance on any savings, investments, business or personal finance matters please don’t hesitate to get in touch with us here at EcovisDCA.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY