Banks charging for deposits

Came up in a conversation yesterday with a neighbour. 6k annual charge to mind €1M he was saying. Wealthy withdrawing their deposits and are buying property and immediately putting it back up on the rental market.

They are unnecessarily complicated to invest in yourself in this country (especially in terms of tax treatment) for a small investor especially if you want to go the safer route with an etf or similar....8 year deemed disposal rule, tax free threshold equivalent of 1k punts

the govt doesnt want your avergae joe ever climbing...you are there to earn a wage and then spend it, take on debt and then get onto a pension for as short as possible or go on social welfare.....they dont want you too independant in terms of assets or thinking, its much better if you are living hand to mouth dependant on them for the handouts and then they can buy your vote and control you with a couple of shillings and the money keeps circulating round the economy and people have less time to question where the excess is being diverted.

The single farm payment is something similar imo

.....they are also overvalued and due a haircut now imo anyway....but what would I know

in other times if they left it more like other countries regarding investing in stocks/shares and it wasnt so arcane and punitive.... it might mean investing in property wasnt the only show in town......and that may not be such a bad thing....

but at a time when theres a housing crisis you make it the only option for the small private guy (and not necessarily a great one at that) and attractive for pension funds cooking the books with rental yield calculations (due to a distorted market) they themselves a playing a part in creating......................................... it looks to me as if not just ireland but our global financial system has tied itself up in another knot which will be painful when it unravels.

its because there is nowhere with a return to put money ..the banks have to charge you for it

so money is now a liability to a bank and not an asset, just think about that and let it sink in for a while......................that to me tells you just how fucked things are at the moment.........

Very well said.

I was in the property game but pulled out like many small guys between Tennant rights and terrible taxes it just ant worth the effort.

Is that only an issue if you've 1million+ in cash?

A little bit away from hitting that here...

I think folks are a bit too extreme with their dislike for cash on deposit. Yes it will depreciate over time, but you need to keep a certain amount and it doesn't loose as much value as you think.

For me, I've made huge gains by having cash. I picked up my Tractor for about a third of its true value a couple of years ago. I bought a good stretch of land for 4k/acre. I filled diesel tanks and a few IBCs with diesel when it was 43 cent a liter.

All done by having money ready and not tied up in things like shares or houses both of which is not my field of expertise.

what year did you buy land for €4000 an acre? Was it cheap for the time?

Self administered pension is the way to use property tax efficiently afaik. Essentially the property is put into the pension an the rent is then built up as part of the pension pot tax free.

Part of the reason property is so mad is there is no decent way of alternative investments in Ireland.

Re the negative interest rates, its hard to know. The way the financial crash was dealt with and then covid has pumped so much money in to the system that the way capitalism should have worked with those that should have failed been let to instead of being propped up has pushed everything down the line.

If you want to borrow then are we gonna be looking at increasing rates or not then. I dunno

2017, and I thought it a great deal. It helps with anything if you get it at a right price. Cheap now with similar places making 10k now

I don't put it down to luck, more about patience and not doing anything foolish in the meantime. There will always be opportunity to those who are prepared.

What kind of deposit account and how rich are you?

All AIB have announced is that they are going to start charging accounts with over €1 million balance from Feb onwards. Anyone stupid enough to leave €1 million in a deposit account long term deserves to be charged (nor is this really any news as banks have been charging negative interest rates for large deposits for many years now).

Join the club..I let off land too which I pass by every day... I'd love to turn back time.. here's hoping for better around the corner