De Wednesday Papers

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16 thoughts on “De Wednesday Papers

  1. Sheik Yahbouti

    So an election IS actually in the offing as many commentators have confirmed. ” Tax Cuts for the middle –in next budget”. How many more times are people going to fall for this ordure??

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    1. Sheik Yahbouti

      I was about to go into a lengthy rant about Pork Barrel politics, but I’m hopeful that one at least of you yung’uns will take up the cudgels.

      Reply
    2. SOQ

      The biggest single issue right now is housing but a lot of people are doing very nicely out of it, including the government. Rents could be brought down in one swipe if there was a legal provision that tenants must receive the tax cut. That is not interfering in the market, quite the opposite. Otherwise, FG are going to get quite a blow back from renters.

      Reply
      1. Rob_G

        “Rents could be brought down in one swipe if there was a legal provision that tenants must receive the tax cut”

        – how would that work? There would still be too many people chasing too few properties; if anything, it could marginally increase rents, as there would be more money chasing the same small number of available properties.

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        1. Cian

          Rob_G. I don’t think the rents would drop – it is just they would cost the tenant less.
          i.e. if I’m paying 2000 per month now, my landlord is getting €2000; The taxman gets €1,100;
          tax relief kicks in (and rents stay the same):
          I’m still paying €2,000 per month now (but getting, say, €400 back on tax-relief), my landlord is still getting €2,000; the taxman is getting €1,100 from the landlord (and passes €400 back to me)

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          1. SOQ

            No amount of guff about market forces is going to hide the fact that the landlords and especially the government are gouging the next generation to the rental hilt.

            Either have full state intervention or none at all. It can be done and if young people mobilise, tax breaks for renters will be done. The working middle class poor can be a very dangerous animal Leo.

  2. SOQ

    You can correct me if I am wrong but nearly half of all rent goes in tax? Therefore the single biggest benefactor of these obscene rent hikes is actually the government. A point that the media has spectacularly failed to mention.

    Would it affect supply? Nobody really knows but that doesn’t take away from the fact that it is state intervention in the form of tax which is part of the problem.

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  3. GiggidyGoo

    “You can correct me if I am wrong but nearly half of all rent goes in tax?” Private landlords perhaps. Vultures, posing as Charities? No, no, and no again.

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    1. SOQ

      What percentage of rent goes in tax? A bit of restructuring needed yes but entirety doable if the will was there.

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    2. Cian

      True – but what percentage of living rental properties are owned by “Vultures”?
      The vast majority of landlords have only one or two properties.

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      1. johnny

        your simply being disingenuous here Cian,the banks introduced what’s know as ‘lockboxes’ whereby all the rental income is routed to service the loans-who ya think owns the vast majority of loans in the BTL sector?
        in effect they are the landlords/owners as they have purchased ALL the loan portfolios sold by the ahem back on their feet/rehabbed Irish banking sector!

        Reply
  4. johnny

    in other news,Digi continues to flog the family silver!
    they are rapidly running out of cash-down 70% from $500m in 2015 to $155m in Mar18-already did sale/leaseback for its towers in El Salvador.
    basically Digi gets a cash infusion today,but increases its operating costs in the longer term as it has lease payments on the towers.
    the buyer (not disclosed) here,on previous deals was a division of Blackstone-who are extremely opportunistic and charge whats called expensive money (high rates).

    “To clarify, we have signed a sale and leaseback agreement for 450 towers in the Caribbean and the deal is expected to close at the end of the second quarter of this fiscal year,” said Antonia Graham, head of group communication at Digicel Group. “We will not be giving any other details at this time.”

    http://jamaica-gleaner.com/article/business/20180620/digicel-group-sell-450-cell-towers-across-caribbean

    Reply

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