Irish Property Market chat II - *read mod note post #1 before posting*

Branches aren’t the only fixed cost…regardless of size of bank they need a banking platform which will cost more or less the same for 100k customers or 1m customers.

The need payment systems and access to payment networks.. most of this will be a fixed cost.

They need AML and Risk. Systems to comply with banking regulations…yet again all fixed cost.

They need access to treasury systems to monitor liquidity and be able to trade bonds etc and make placements with central banks..more fixed cost.

on the people front they need people in central functions such as finance legal risk IT…yet again fixed cost on not really dependent on Size.

On top of that the Irish banks have seen little investment in the past 10-15 years besides regulatory compliance and have a poor customer offering as a result which allows fintech compete and take over profitable parts of the business such as FX etc. If they don’t invest or acquire fintech companies and get up to speed it is questionable will they still exist in 10 years.

Unless a bank is a certain size it will struggle to remain profitable even if they get a return from the central bank. If they struggle to write enough new loans which all Irish banks have difficulty doing as more loans are paid off than draw down for the past few years the return on equity is going to be low and it makes perfect sense to shut up shop and release the capital and use it else where they can get a better return.

Saying they get a return from a central bank as opposed to earning a return else where is the equivalent of someone parking 10m Euro in a current account and getting a minimal return instead of investing the money elsewhere and getting a good return. It didn’t Matter much when rates were negative/low as it was difficult to get a return anywhere but with rising rates it’s more important than ever.

5 Beds 2 Baths 113sqm = 195k

Area would have a poor reputation also

Gives new meaning to the saying 'I got a Leopard skin wall to sell you'

Commercial property in Dublin not looking fantastic atm

Zuck also just confirmed they're letting go more than 11,000 people globally.

How are empty office blocks going to impact supply of housing? Surely they're unsuitable to live in, and not zoned for residential use?

We could not build sufficient houses because Labour was tied up building office blocks in the last decade. That excuse appears to be obsolete currently

Lol. Says scrooge mcdav10

A man with multiple houses, wants his wealth going up only. You have no worry for people losing their jobs, same as you could careless for people struggling to find rental accommodation, or ability to pay their rents or ability to afford to buy a house at a decent price.

He called people numb nuts and then said people were applauding job losses. Who exactly is applauding?

Dont know why some people are allowed to post here. Just rude.

Reality is utterly really ****, some people mostly older boomer age just cannot see it and don't want to hear about it either. QE and low interest only serves one purpose, Inflate asset prices. Sad thing is it only benefits existing asset owners like the boomer era that have houses and assets. Once the divide between the have and have-nots gets to levels that are completely unstable like now, then society is on the decline. Asset prices have to fall inorder to save society one way or another and that means boomers will have to start seeing reality. Sad and abit controversial but that's just my opinion.

If your working and living here that state spending comes directly out of your pocket, its not as simple as you make it out to be. I have zero and I mean zero confidence if the state upped other taxes or introduced new ones that they would drop income tax proportionately. So better to fight new taxes as once they have their claws and mechanisms in place to tax something for example labour this tax is at the mercy of the government of the day. Property tax will be increasing over the next decade so once a new tax comes into place even if it is "supposedly temporary" (like the USC) it is very hard to ween our welfare state from the tit.

The timing of former IDA boss Martin Shanahan's early exit from his tenure as CEO now seems more than a co-incidence. If anyone had the inside running as to what kind of sh!t show was coming, it was him. Get out before you have to face the music.