>What’s more, the impact of inheritance on the prospects of young Irish citizens is becoming more pronounced. It’s a vicious cycle. Higher house prices beget more wealth, which in turn shut out more people but enrich those who can turn to Daddy and Mummy.
>According to the CSO, the net wealth of households headed by those aged 55 and older increased by 15.7 per cent from 2013 to 2019, to an average of €738,000 in 2019. Such wealth perpetuates housing inequality, as those without parental financial backing struggle to compete.
>An ESRI report noted that households receiving parental assistance were 2.5 times more likely to be able to afford a home than those without such support and with the top 20 per cent of income earners owning 40 per cent of the country’s total housing wealth, wealth is hyper-concentrated. The result is a two-tier housing system, with the NBBs pulling away from the rest,by simply doing nothing.
Just as nature intended.
Hardly a revelation. Meanwhile “high earning” PAYE workers with no assets get absolutely shafted by the “progressive tax system” while the people with actual wealth (property owners) sail off into the distance.
All booms bust.
Maybe not tomorrow, but you can be sure it will
The problem is taxing income vs taxing wealth. Young 30 something earning 100k will lose out against anyone with less income and more assets as government make sure they have less income. And then they are forced to buy an overinflated asset by a multiple of their income. Guaranteeing servitude. It’s a racket
I wish we could stop pretending this is any individual demographic’s fault. Of course if your folks had the money, they’d rather help you buy a place than house you until you’re 35. But we’ve gone from “the Ukrainians take all the housing” to “the old people who refuse to downsize take all the housing” to now “the nepo babies take all the housing”.
No. Investment companies take all the housing and there is not enough housing because the government is not tackling the issue efficiently since most of them are landlords and profit directly from there being a shortage.
7 comments
>What’s more, the impact of inheritance on the prospects of young Irish citizens is becoming more pronounced. It’s a vicious cycle. Higher house prices beget more wealth, which in turn shut out more people but enrich those who can turn to Daddy and Mummy.
>According to the CSO, the net wealth of households headed by those aged 55 and older increased by 15.7 per cent from 2013 to 2019, to an average of €738,000 in 2019. Such wealth perpetuates housing inequality, as those without parental financial backing struggle to compete.
>An ESRI report noted that households receiving parental assistance were 2.5 times more likely to be able to afford a home than those without such support and with the top 20 per cent of income earners owning 40 per cent of the country’s total housing wealth, wealth is hyper-concentrated. The result is a two-tier housing system, with the NBBs pulling away from the rest,by simply doing nothing.
Just as nature intended.
Hardly a revelation. Meanwhile “high earning” PAYE workers with no assets get absolutely shafted by the “progressive tax system” while the people with actual wealth (property owners) sail off into the distance.
[removed]
https://www.theguardian.com/world/2023/aug/31/country-garden-chinese-property-developer-reports-half-year-finanical-loss-fears-default-risk
All booms bust.
Maybe not tomorrow, but you can be sure it will
The problem is taxing income vs taxing wealth. Young 30 something earning 100k will lose out against anyone with less income and more assets as government make sure they have less income. And then they are forced to buy an overinflated asset by a multiple of their income. Guaranteeing servitude. It’s a racket
I wish we could stop pretending this is any individual demographic’s fault. Of course if your folks had the money, they’d rather help you buy a place than house you until you’re 35. But we’ve gone from “the Ukrainians take all the housing” to “the old people who refuse to downsize take all the housing” to now “the nepo babies take all the housing”.
No. Investment companies take all the housing and there is not enough housing because the government is not tackling the issue efficiently since most of them are landlords and profit directly from there being a shortage.