A lot of fuss over stock vs flow. They’re representative of different things.
Exactly, it’s utterly beside the point.
Yet what it tells us about the thinking and outlook at the top is far more valuable.
Welcome back mightyz, how has the move gone? Fully settled?
Is Wroclaw your home town?
@mightyz, Great to see you’re still posting.
Looks like a picturesque city. Hope it’s working out
Daft Listing Advertises A Bed Share with a stranger
also this beauty from a few months back
Savills estate agents predict:
Dublin rents will ↑ 5% - 6% pa until end 2019
Rest of country, rents ↑ of 7.2% pa
Good for the GDP don’t ya know
That madness bares how predatory some people get when others are at their whim because of.how the game is rigged. You see it in rental ads in places like sydney and melbourne. Who wants a world like that?
Endless population growth is something we need to face up to. It is backward
My understanding is that rents are a transfer from one member of society to another i.e. no contribution to GDP
Fixed that for you.
Rent is a payment for a service on market terms so is counted in GDP.
Transfers from you to the government (taxes) and from the government back (welfare payments) are not counted.
Yep, the CSO note on their GDP methodology: cso.ie/en/interactivezone/statisticsexplained/nationalaccounts/howaregdpandgnpmeasured/
What I find interesting is the effect GDP stories have on the public’s phyche. Employees hear on RTE at night that GDP is growing and assume this must mean they are entitled to/going to get a share. Not so fast my friend.
They they then get disgruntled by a meagre or small pay rise when the reality comes. What people don’t appreciate is that rents and profits can drive GDP up, but wages may be and in many cases are static. Taken to an extreme the cabal who have driven up rents in Ireland in the last 5 years through population growth may justify increased government expenditure and promote government debt levels to keep the ‘party’ going, based on these elevated bubble dependent GDP figures. Just as they did those days of antiquity 2002-2008.
‘Forever renters’ in 40s and 50s risk penury in retirement - Mark O’Regan -> independent.ie/irish-news/f … 94012.html
That will be the least of their worries, how many have a pension?
The state pension in Ireland is a relatively generous bulwark against poverty. Most pensioner households are not in the bottom 20% of the income distribution.
Allied to this, almost everyone hitting pension age in Ireland now is an owner-occupier without a mortgage, or, in social housing with tenure for life.
This is changing.
Private renting in old age - the norm in many countries - is new in Ireland and will put quite a few pensioners into poverty in future.
The challenge with renting when you are retired is that you need to be mobile and take advantage of low cost locations that do exist, but they may be miles from any services that you need when you are older (like doctors). I’ve met several pensioners from the UK who have rented here for a number of years, and it generally goes OK for them until a partner dies or they get sick then they tend to move back to the UK and live with their adult children.
Well the State will pick up the tab for their housing one way or another. However, they’ll have less choice over their own housing, both in terms of size and location.
This will tend to increase the utilisation of housing (i.e people per bedroom) by diminishing the tendency of people to inhabit oversized accommodation, although it’ll happen so slowly that nobody will really notice.
Given the current demographics the state pension is unlikely to be as generous in a few decades time.
I think quite a few pensioners who own their own homes live close to poverty. Witness the comments about refurb cost’s on other threads. Old damp single glazed etc. At least there are meant to be standards for rental properties no such benefits to an old retired house owner.
As the CSO measures it, most pensioner households are in at least the 3rd decile of the income distribution and are owner-occupiers.
They are free to spend their money as they see fit (or not at all) but it does allow them to be comfortably housed.