Coalition mulls finance options to boost housing supply

Developers complain of difficulties raising finance from banks for new schemes

 

The Government is exploring ways of providing finance to builders in a fresh attempt to boost the supply of homes in Dublin.

It is one of a series of measures discussed at a Cabinet sub-committee which heard there was little sign of construction activity on the ground in the capital, despite planning approval for up to 21,000 new homes.

Many developers complain that difficulties raising finance from Irish banks is a key obstacle blocking progress on new developments.

Ministers on Monday discussed ways of expanding the State’s pension reserve fund to provide up to 90 per cent of finance for developers for individual building projects where demand for housing is high.

While the idea of exchequer funding for builders is likely to be highly controversial in light of the property collapse, the Ireland Strategic Investment Fund is a sovereign wealth fund.

This means it would use a combination of money previously held in the national pension reserve, along with private investment, to provide up-front finance for builders.
Demand for housing

There have been discussions concerning provision of up to €500 million through this route, though some sources on Monday suggested more funds would be needed to make inroads into demand for housing.

The committee meeting was chaired by Taoiseach Enda Kenny and included Minister for Finance Michael Noonan, Minister for the Environment Alan Kelly and Minister of State for Housing Paudie Coffey.

Other ways of boosting the housing supply discussed by the subcommittee included:

Lowering local authority development levies, to make it cheaper for builders to start housing developments;

Expanding the role of the National Asset Management Agency to play a more central role in facilitating the construction of thousands of new houses and apartments;

Greater investment in infrastructure – such as water pipes, power lines and roads – to make priority-zoned lands usable for housing.

In the Dublin areas alone, it is estimated that up to €165 million in infrastructure could deliver up to 65,000 homes.

This Content was originally posted on : Carl O'Brien 

Radziwill: scale, deflation will continue to decrease

In the following months this year deflationary scale on an annual basis will continue to decrease, and the speed of these changes will largely depend on the situation on the raw material markets, ' says Finance Minister Artur Radziwiłł.

 

 

"August's CPI reading (0.6% YOY) was in line with the expectations of the Ministry of finance, and slightly higher than market expectations. The CSO data indicate already the sixth consecutive month deflation scale reduction in Poland, "said the Minister in a comment.

 

He pointed out that in comparison with previous years reported a smaller drop in seasonal food prices and non-alcoholic beverages, and food price deflation has been on an annual basis from 1.7 percent to 0.7 percent.

"We estimate that the base inflation in August stood at 0.3-0.4 percent on an annual basis (to 0.4 percent a month before). A sustained since July 2014, the deflation in prices of consumer goods and services is the result of several factors. the negative output gap (which translates to low inflation base) and still low in energy and food prices, "he said.

"We anticipate that in the next few months of this year, the scale of deflation (in annual terms) will continue to decrease, and the speed of these changes will largely depend on the situation on the raw material markets," he added.

GUS reported Tuesday that deflation in August amounted to 0.4% in terms of monthly and annual-0.6 percent. Economists interviewed by PAP szacowali, that the prices of goods and services fell in August by 0.7 percent on a yearly basis, and the month-by 0.4%.

As written in wtorkowym communication of GUS the greatest impact on the price index of consumer goods and services in total were in August lower by 0.8% and food prices lower by 1.5 percent, prices of clothing and footwear. In August, also staniał transport (by 1.1%).

Chip Hollingsworth: 5 secrets you should never keep from your financial advisor

The best relationships are based on honesty and trust. That's true for your personal relationships as well as your relationships with professionals who help you with your problems. You shouldn't keep your symptoms a secret from your doctor, and you shouldn't withhold pertinent information from your lawyer. Doing so can lead to unfortunate consequences. This same idea applies to your relationship with your financial advisor.

It's important that you're upfront and honest when meeting with your financial advisor. Here are the top 5 secrets I've seen clients keep to themselves over the past 25 years.

'I'M THINKING OF DIVORCING MY SPOUSE/GETTING MARRIED'

Many clients feel that a change in their marital status has no impact on their financial plan. That's simply not true; a change in marital status can affect future generations.

A well-designed financial plan will address prenuptial agreements, beneficiary designations, transfer-on-death designations, inheritance distributions, blended family concerns and legacy planning. If the financial advisor is kept removed from your plans of divorce or marriage, they won't be able to implement these considerations into your financial plan.

'I HAVE A LOT OF CREDIT CARD DEBT'

A few thousand dollars here and there on credit cards might seem irrelevant if you're able to make the minimum payments, but the cost of this consumer debt can be astronomical over time. For example, it could take you about 30 years to pay off a credit card with a $10,000 balance and 20 percent interest - even if you pay the minimum monthly amount. And, you will have paid $16,000 in interest to the bank.

Do yourself a favor, and let your financial advisor know about your credit card debt. He or she can help you figure out a credit card debt reduction plan so you can avoid paying a large amount of interest.

'I'M GOING TO BE A CAREGIVER'

While a client might not have a health issue, they might find themselves in a caregiver role or being financially responsible for the care of someone. Inform your financial advisor if you're going to be a caregiver so they can create a comprehensive financial plan that includes liquidity needs, risk management measures and anything else you might need to prepare for the expected and unexpected needs.

'I CARRY LARGE DEDUCTIBLES'

Many people have recognized that carrying large deductibles can keep home and auto insurance as well as health insurance premiums low. During your meeting with your financial advisor, they should ask why you're carrying large deductibles, but in the event that they don't, let them know that having this level of liquidity is important. You don't want to have to surrender a variable investment on a down-market day.

'I DON'T FULLY UNDERSTAND RISK'

A good financial advisor will know their client's risk tolerance. But unfortunately, some clients agree to a more aggressive portfolio design that they don't fully understand. Never be timid to ask questions. It's your money, and you're paying for the advice in some fashion. Don't walk away from your hard-earned money without knowing how it's going to be handled - especially in volatile markets.

Chip Hollingsworth writes for GOBankingRates.com (), a leading portal for personal finance news and features, offering visitors the latest information on everything from interest rates to strategies on saving money, managing a budget and getting out of debt.

The Ballers Guide to Choosing a Financial Advisor

 

Second in a series. Having concluded its first season and been renewed for a second, the hit HBO show Ballers on life after football paints a picture of financial planners and their clients living high on the hog. This post, we offer up some Ballers-inspired cautionary notes on what to look for in a professional financial planner and what scenes should send you running for the hills.

Full disclosure: In all my years as a CERTIFIED FINANCIAL PLANNER, I have never snorted rails of cocaine off a hooker's bosom. Nor have I ever witnessed any of my colleagues doing so either. Yet, if you take the HBO show 'Ballers' at face value, you might think that's all we get up to when we're not working our spreadsheets. Perhaps such hijinks happen in a financial advisors office or two somewhere out there but certainly not in ours. Yet, despite the program's OTT misrepresentation financial planners as party boys (and girls), I still maintain that the show gets many of the follies and foibles about money absolutely correct. 

So what can 'Ballers' teach us mere mortals about choosing a financial planner?  

The Big Four

The four questions anyone should ask before hiring a financial planner are:
 

1) Do you trust them?
2) Can they help you reach your financial goals?
3) Do they have your best interests at heart?
4) Are they a Certified Financial Planner™?

A response of NO to any of these questions should be a deal breaker. For sure, there are many more questions to ask a financial advisor before actually hiring them--things like fee structure, experience and investment philosophy-- but these initial four are easy to answer and are non-negotiable in my book. So bearing this in mind, let's see how the Ballers guys do.

Trust

Joe Krudel (played by Rod Corddry) really epitomizes the sleazy car salesman image of an 80's era boiler room stockbroker who makes outlandish promises that seem too good to be true (and we all know how those usually pan out, right?) Joe may be a nice-ish guy and a lot of fun, but do you really want to trust him with your life savings? If I reminded you that it was your money he was spending while he's partying hard, would you find his shenanigans quite so amusing? Sadly, I've met many a stockbroker who could be twins with this crazy guy whose better judgement gets blinded by the shiny light of fame and glamour.

Most financial firms or advisors wouldn't (couldn't and shouldn't) go the lengths that the Spencer Strasmore (Dwayne Johnson) does. For example we can't legally lend our clients money or borrow from them either. And while it may sound nice that Spence is paying off Vernon's (Donovan Carter) blackmailer, to be able to afford that $150,000 tab he is either dumb with money, or ripping his client off somewhere else.  

Takeaway: Do not expect your financial professional to bail you out of jail or pay off someone who is blackmailing you. (Why do these things always happen outside of market hours, BTW?) Furthermore, a trustworthy financial advisor is neither a dream merchant making promises the market can't possibly keep nor your partner in crime; he or she is your partner in helping you handle your money . . . legally.

Goals

The players of Ballers are far more interested in field goals than long term financial goals, no surprise since they're gifted young athletes at the height of their physical powers. If anything, their biggest goal seems to be getting through practice and back to the party. Living for the moment, and blowing every penny they make (and then some) may seem glamorous and fabulous in the moment, but a big headache after they come down from the fame high and the free flowing fortune that comes with it as Charles (Omar Benson Miller) selling cars can well attest.

Takeaway: Nothing lasts forever and the future will be here before you know it. Leverage Father Time, and his best friend Compounding Interest, and set financial goals for yourself while most importantly developing an active game plan to actually reach them. 

Best interests

The star defensive end Vernon has got himself into a real financial pickle by allowing his boyhood friend Reggie (London Brown) to 'manage' his money. While Reggie means well and thinks he has the athlete's best interests at heart, he doesn't really. In fact, being unlicensed, untrained, and unequipped to control Vernon's increasingly rapacious entourage of freeloaders, Reggie is bringing financial disaster down on the head of his buddy. 

Takeaway: Look for an Advisor who will tell you what don't want to hear. Your financial advisor is not there to be your best friend and the good ones won't back off from telling you painful truths--in ways a friend never could--if it'll help you financially in the long run.

Certification

I will give it to Spencer Strasmore who does go the extra mile for his clients which is nice. More importantly, he works hard to serve them, even when they have little interest in listening to his advice. That being said, he is just there to monetize his football connections. But the biggest red flag, and this is huge, is that he isn't securities licensed. 

The CERTIFIED FINANCIAL PLANNER™ designation means an individual has a CFP® Board-approved education, has successfully passed a rigorous CFP examination, has at least three years of financial planning experience and voluntarily ascribes to the CFP® Board's code of ethics. 

Takeaway: Who would you rather have handling your money, a licensed professional who is all of the above or someone whose claim to fame is knocking out his opponent unconscious while playing defense? Repeat after me, no license, no bueno, no deal-e-o.

This Content was originally posted on  David Rae 

Stock Market Selloff: Top Financial Advisers' Advice For Achieving More Income

Having Two Homes In China Is Not Enough

For the truly affluent Chinese, of which there are hundreds of thousands these days, having a home in Shanghai and one in Hong Kong is passé. You've made your neighbors jealous if you have a home in Malibu. In fact, according to the National Realtors Association, Chinese buyers accounted for 12% of all the non-American buyers of California real estate in March of 2013. That puts them only behind the Canadians, which accounted for 23%. Here's the kicker: China's home buyers spent more than twice what the Canadians spent, dishing out upwards of $425,000 for a piece of the California Dream. Forbes spoke with Andrew Taylor, the Aussie CEO of Juwai.com, China's biggest real estate source for those looking to buy overseas or connect to those who are on the prowl for property. Here's Juwai's top 10 most searched for destinations, along with comments from Taylor. Sales data not included.