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Kick Bills before Buckets

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With Irish people now beginning to get a foothold on the property ladder later in life, we are also beginning to start families slightly later and as such, thoughts often turn to what provisions can be made for your family in the unfortunate event of your death. Whether sudden or prolonged the death of a loved one has devastating emotional consequences so it is advisable to think ahead and do all that you can to avoid there also being devastating financial consequences. It’s a fairly morbid thought to begin the year with but we are big believers in thinking ahead and there are dangers to be found in ignoring the inevitable.

 

It is advisable to think ahead and to have your affairs in order in so far as possible at all times and at the very least to know what would happen to your existing finances or your current payments in the event of your passing. We might all have hated those conversations our parents would begin about the event of their death, but they are wise to open these discourses to avoid burying our heads in the sand. Having your affairs in order could prevent causing additional pain to your loved ones at an already emotionally painful time.

 

Something which is often overlooked are bank accounts. Whilst many of your debts will pass away with you, bank accounts are not among these. Your bank account will continue to issue payments etc. as usual until informed of the death, so it is advisable to ensure that someone is aware of all of your accounts as they may then be liable to take over a debt they were unaware of, or the account could be left running into difficulty. By contrast, the advantage of a joint account means that all funds can pass directly to the named survivor on the account.

 

Credit Union accounts are another issue which surviving loved ones are often unaware of as your loved ones might be able to avail of a pay out from your credit union savings following your death due to a little known life insurance scheme which accompanies your credit union account as well as being able to avail of any savings you have made. Credit Union loans differ from most as they will typically be cleared upon the death of the account holder.

 

The most crucial manner in which people fail to keep their loved ones up to date on their financial matters is their debts and loans. Many debts or unpaid loans will simply pass to your estate and interest will continue to accumulate on these until paid in full, causing a further headache for your family in what is already a difficult time, debts can even be recovered from existing accounts leaving loved ones without access to these previously available funds, whilst your estate can be liable for any remaining balance.

Mortgages can be problematic, some banks allow a moratorium following a borrower’s death although interest may continue to accumulate so it is wise to check your options in advance so all parties are aware of the situation, and to ensure your mortgage protection is full and up to date.

Having a current up-to-date list of your accounts and investments and ensuring that someone has the information or access to this information to avoid further heartache at a difficult time. Though these issues may feel morbid to bring up, they are vital to ensure that your loved ones can live on as comfortably as possible.

Should you require any assistance or guidance on these or any other financial or business matters please do not hesitate to get in touch or arrange a meeting with us.

 

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

ICS YOU CAN

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Something which we consistently come back to as a topic of interest for our customers are mortgage lending rules and the tiresome process of trying to get a foothold on the property ladder, which let’s face it, these days can often feel like playing a very difficult video game. You’re pressing all the right buttons, but somehow still find yourself placed back at the previous checkpoint. Recently, with minor changes made to the rules for first time buyers it seems that the clouds are clearing somewhat to allow an easier path to your first home. Further good news continues to come in for prospective new home owners in the form of the return of schemes and products which assist in the purchasing process and provide buyers with more options than were previously available. Following on from the economic downturn, all available products and schemes aimed towards making it easier to begin the climb up the property ladder seemed to effectively disappear overnight. Recently we have seen a slow resurgence in these schemes and products which is welcome news. Today we will be discussing the new buy-to-let product from Dilosk and ICS mortgages which is aimed towards both individuals and companies.

 

The idea of buy-to-let is to turn a property purchase into an investment in order to utilise it as a cash flow solution. Upon purchasing the property, it is then placed for rent in the hopes of covering mortgage costs as well as any outgoings and perhaps generating some amount of income for the landlord. Buy to let involves dealing with the expectation of capital growth and thinking in the long-term which can be tricky as these matters are always in flux but it is ultimately a worthwhile endeavour which can generate cash flow which would not ordinarily exist which is never a negative thing these days.

 

ICS’s buy-to-let mortgage package is available to both individual and company investors. The loan structure for both options is fairly similar in that both offer a 10 year interest only option and a 20 year capital and repayment option as well as a minimum term of 5 years and a maximum of 20. The differences arise in relation to the borrowers themselves as there are additional criteria which applies to the individual and not the company investor.

 

The individual must be:

 

  • Min age at application: 21 Years.
  • Max age at maturity: 75 Years.
  • Minimum annual income: €40,000.
  • Max of four applicants.

 

 

The property must also be in the Republic of Ireland. Lending will be made available to those who meet these criteria, have a clean and who wish to buy in any major cities in the Republic of Ireland with more than 10,000 citizens. Further information can be found on their website or by contacting ICS directly. Finally we are seeing some positive movement in the mortgage market

 

Should you require any help, assistance or guidance on these or any other tax or business matters, please don’t hesitate to contact us.

 

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY

TIGHTER SQUEEZE FOR DUBLIN BUSINESSES

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It’s no secret that the property market in Ireland has been rife with struggles in recent years, with the increased strictness and new mortgage rules putting roadblocks in the way of first and second time buyers. Now, with office space rental prices increasing whilst availability decreases it has become more difficult than ever to gain access to appropriate property in Dublin both for personal and business customers.

 

This issue is set to become a prevalent one for Dublin businesses as it has been suggested by the Society of Chartered Surveyors Ireland that rental rates for businesses in Dublin are to rise sharply by 12% in the coming year. To add fuel to the fire of a rocky year for leasing in Dublin, it has also been recently reported by estate agentSherry Fitzgerald that vacancy levels for office space in Dublin have hit an all-time low. It seems to be a Catch-22 situation ahead for new and upcoming businesses in Dublin as there will now be limited property available and a cost increase on existing property.

 

The SCSI’s group chair Brian Meldon has been quoted as saying the following regarding the lack of supply:

“While some respondents are anticipating an increase in supply in 2017, no new office space has been delivered to the Dublin market for the last five years and as a result demand continues to surpass supply.”

 

It has been suggested by economists that the influx and growth of the tech company sector in Ireland may have led to greater competition for office space, resulting in less availability and higher rates as competition increases.

 

It is not just office rental availability which has become an issue in recent years, as property website Daft.ie have this week published their report which showed that this month, tenants had only 3,600 properties to choose from in the entire country, a massive drop from the 5,200 seen at the same time last year, and a marked difference between the 16,000 available in 2010.

 

Undoubtedly, demand for office space across the country will continue its rise in 2016 as our economy continues down the road to recovery. Between office space and personal accommodation, we may see ourselves running head first into a rental crisis in the coming months and years. If you are curious about the rental prices and availability in your own area, we would advise having a read of the Daft report which includes many infographics to keep you informed.

 

As always, please don’t hesitate to get in touch with us here at DCA Accountants if there is any way we can be of assistance to you and your business in the midst of these crises.