Majority of Irish wealth held in property - survey

[Dubhgeannain]

Wealthy people in Ireland are more likely than those in other countries to hold the majority of their wealth in property.

According to Barclays’ latest Wealth Insights report, property accounted for 55% of the wealth held by Irish high net worth individuals despite the country’s property market collapse.
Just 2% of wealth is held in business and entrepreneurial interests, 18% is held in cash and 16% held in investments.

Just 2% of wealth is held in business and entrepreneurial interests, 18% is held in cash and 16% held in investments.

…

rte.ie/news/business/2013/06 … h-ireland/

No surprise. Still it does explain some of the reason for the long drawn out crash we’re experiencing. Too many big players with a lot to lose.

[Eschatologist]

https://cdn1.independent.ie/incoming/article29353803.ece/binary/BUSINESS-get-rich-copy_web.png

Source: independent.ie/business/pers … 52117.html

[slasher]

what a piss poor level of business interests

barclayswealth.com/insights/ … index.html

here’s the original report

[Blue_Horseshoe]

Sure what would they know … they’re just “outsiders”.

The Field - Outsiders

Blue Horseshoe

[Dubhgeannain]

@slasher

what a piss poor level of business interests

barclayswealth.com/insights/ … index.html

here’s the original report

Thanks Slasher, I actually went looking for it but couldn’t find it.

I’m having great craic turning those pages. I’ve a sad life

[dolanbaker]

I wonder just how much of that property was purchased before the bubble popped and they only still have it because selling would crystallize losses.

[slasher]

anyone remember/ links to that Wealth Report at the top - Davy’s was it? how everyone was a millionaire and all that

edit:
eapn.ie/eapn/wp-content/uplo … t-2007.pdf

here it is

Net wealth increased by €126bn or 19% to €804bn; one of the fastest growth rates
in the OECD.
Gross assets of Irish households stood at €965 billion at the end of 2006, an increase of €153 billion
or 19%, while household debt increased by €27 billion or 20% to stand at €161 billion.
The asset base (excluding residential property) of the top 1% of the population increased by €14bn to
€100bn, an increase of 16%.
2. Irish per capita wealth still ranks second among leading OECD countries. Net wealth
per head in the Irish economy increased from €148,000 in 2004, to €168,000 in
2005 and to €196,000 last year.
This sustained rate of growth places Ireland in the vanguard of OECD countries in terms of wealth
creation. What makes this even more remarkable is the fact that most countries saw strong gains in
wealth over the intervening period.
3. The household balance sheet is still in very good health with the asset base dwarfing
household liabilities.
Despite the continued high level of debt accumulation, the household balance sheet remains very
robust with assets outnumbering liabilities by a multiple of six.

[Homemaker]

30% of our rich (the largest contingent) are retired

The most vulnerable in society

[magoko101]

@Homemaker

30% of our rich (the largest contingent) are retired

The most vulnerable in society

Sure is there a section of Irish society that isn’t vulnerable?

[NegativeEquity]

Should this thread not read:

Majority of Irish debt held in property

[Sidewinder]

It’s a useful statistic to try to explain to outsiders what the Irish economy, Irish society, Irish financial system, and Irish political establishment is really all about, and thus how we got into such a mess.

Property, property, property. It’s all that matters in Ireland. The economy revolves around it, the banks are only interested in lending for property-related business, the notion that the only way to "make something of yourself’ and be respectable in society at large is to own property has a status in Irish society more fundamental that any religious belief, questioning this assumption is the very worst form of social taboo and causes instant ostracism and demonisation from society, the political establishment are all property speculators, legislation on any topic is drafted with one eye to the effect on property prices, every single policy decision made by every single arm of the State has to first pass the “effect on property prices” test…

The underlying problem isn’t actually financial or political. It’s cultural.

[Col_Max_Pyatnitski]

@Sidewinder

It’s a useful statistic to try to explain to outsiders what the Irish economy, Irish society, Irish financial system, and Irish political establishment is really all about, and thus how we got into such a mess.

Property, property, property. It’s all that matters in Ireland. The economy revolves around it, the banks are only interested in lending for property-related business, the notion that the only way to "make something of yourself’ and be respectable in society at large is to own property has a status in Irish society more fundamental that any religious belief, questioning this assumption is the very worst form of social taboo and causes instant ostracism and demonisation from society, the political establishment are all property speculators, legislation on any topic is drafted with one eye to the effect on property prices, every single policy decision made by every single arm of the State has to first pass the “effect on property prices” test…

The underlying problem isn’t actually financial or political. It’s cultural.

+1
The Savage Eye episode on the property market and property crash captures some of this
…the dinner party with people greeting each other with “House do you do?”

And RE lending for property only: so true; chiropodist I know with a very good business was looking for a business loan to expand. Was very professional, profitable in what she was doing already, business plan drawn up for what the money would be spent on. Banks turned her down (during boom), but then tried to offer her mortgage products to buy a house to let out. Clearly they were happy enough with her earning stats to advance a loan, but no ability to see that a good loan might not involve a house purchase.

[Inis_Man]

@Sidewinder

It’s a useful statistic to try to explain to outsiders what the Irish economy, Irish society, Irish financial system, and Irish political establishment is really all about, and thus how we got into such a mess.

Property, property, property. It’s all that matters in Ireland. The economy revolves around it, the banks are only interested in lending for property-related business, the notion that the only way to "make something of yourself’ and be respectable in society at large is to own property has a status in Irish society more fundamental that any religious belief, questioning this assumption is the very worst form of social taboo and causes instant ostracism and demonisation from society, the political establishment are all property speculators, legislation on any topic is drafted with one eye to the effect on property prices, every single policy decision made by every single arm of the State has to first pass the “effect on property prices” test…

The underlying problem isn’t actually financial or political. It’s cultural.

Good points again from SW. And what doesn’t get much mention here either is the whole area of sports clubs getting over extended during the boom. I know of two midlands clubs with huge debts to improve facilities which will now struggle to make the repayments. Tis difficult to see what was wrong with the existing facilities, since all the pitches need are dressing rooms showers and meeting area for most clubs, but with a bank official or two on the committee you can be sure there’ll always be pressure to upgrade, sure won’t the mug members pay for it all…for years and years. Better to extract some rent from the pitches than have em being played on for free, no??

[slasher]

@Inis Man

. Tis difficult to see what was wrong with the existing facilities, since all the pitches need are dressing rooms showers

This was my feeling on Lansdowne Road - all this talk about modern facilities -you’re only there for two hours tops three or four times a year, if you can’t stand on the terrace for that then you shouldn’t get a fupping ticket.

At least Bertie never built his bowl

[Tis_Meself]

@Col. Max Pyatnitski

@Sidewinder

It’s a useful statistic to try to explain to outsiders what the Irish economy, Irish society, Irish financial system, and Irish political establishment is really all about, and thus how we got into such a mess.

Property, property, property. It’s all that matters in Ireland. The economy revolves around it, the banks are only interested in lending for property-related business, the notion that the only way to "make something of yourself’ and be respectable in society at large is to own property has a status in Irish society more fundamental that any religious belief, questioning this assumption is the very worst form of social taboo and causes instant ostracism and demonisation from society, the political establishment are all property speculators, legislation on any topic is drafted with one eye to the effect on property prices, every single policy decision made by every single arm of the State has to first pass the “effect on property prices” test…

The underlying problem isn’t actually financial or political. It’s cultural.

+1
The Savage Eye episode on the property market and property crash captures some of this
…the dinner party with people greeting each other with “House do you do?”

And RE lending for property only: so true; chiropodist I know with a very good business was looking for a business loan to expand. Was very professional, profitable in what she was doing already, business plan drawn up for what the money would be spent on. Banks turned her down (during boom), but then tried to offer her mortgage products to buy a house to let out. Clearly they were happy enough with her earning stats to advance a loan, but no ability to see that a good loan might not involve a house purchase.

I think it was D McWilliams who pointed out during BaBaBoom times how worrisome it was that the Banks themselves were not directly investing in property but were more than happy to lend to individuals to do so.

[the_edge]

@Tis Meself

I think it was D McWilliams who pointed out during BaBaBoom times how worrisome it was that the Banks themselves were not directly investing in property but were more than happy to lend to individuals to do so.

The banks may not have been directly investing in property but IIRC they were selling off branches to raise funds so as they could lend more. A lot of the senior execs were themselves leveraged up for property plays.