Why is everyone talking about pensions?

Perhaps you started to wonder, or perhaps you had far better things to be thinking about instead, but you might have noticed recently that there is an awful lot of attention being given to pensions.  Newspapers are highlighting stories; the pensions authority is running ads on Newstalk about employer’s responsibilities when it comes to providing pension access for staff and each and every pension provider is advertising through every medium they can find to highlight the value in paying into a pension product.

So why all the noise?

Well, 2 reasons really. The first is that this is what’s known in the industry as pension season. The time of the year where employed individuals and self-employed workers can write a cheque to their pension and write it off against 2015’s tax bill. An excellent and simple method of making a sensible financial planning decision that saves a good slice of tax while you are at it. For those who would like to do this, assuming you complete your returns online, you have about 10 more days to get this submitted so if you want to understand the tax benefits and are still considering putting a lump sum away for your retirement please get in touch with us asap. We can assist in getting this done for you in time.

The second reason and probably the more logical reason is that this deadline tends to bring the discussion about pensions back into the spotlight and with good reason. Allow me highlight a few simple points.

In Ireland today there are 5 people working for every 1 that is retired. In 25 years’ from now there will be 2 people working in Ireland for every 1 that is retired. A massive increase in retirees.

The social welfare pension is amongst the highest in the EU and couldn’t be maintained at its current levels in years to come considering point 1 above.

Our debt levels per head of population are amongst the highest in the EU.

Life expectancy is continuing to rise.

State pension age is continuing to rise.

Costs of living are continuing to rise.

The cost of health care continues to rise.

Pensions are optional.

The simple reality is that we all must start to believe that pensions, complicated as they can be, are a now an absolute must. Like any savings habit, just get started. Take the plunge. I have never met anyone ever, who was upset they had arrived close to retirement with a pot of cash. The only regret I ever hear from clients is that they wish they had more, and they wish they had started earlier.

Please take note when I say that the tax relief available is generous, the state can only be responsible for providing so much for you in your years to come and you won’t regret it. In fact, once you start saving you’ll probably quite enjoy it.

And please always remember it’s never too late and please don’t put this decision on the long finger. Having money when you go on the longest holiday of your life is surely something that has to be considered a necessity.

Get in touch with Nick Lawlor today on 01 531 0571 or nick.lawlor@newbeginning.ie to start your retirement planning today.

Avoid Receivers at All Costs

Receivers are appointed in Ireland without the involvement of a Court.

When somebody enters into a mortgage type agreement with a lender, and where the secured property is not a family home, the borrower gives the lender a right to appoint a receiver when the borrower has defaulted on the loan.

The bank will first call in the loan which involves making a demand for full payment within a period of time. Often this can be a very short period – in some cases even hours. If payment is not made within the time allowed the lender will appoint a receiver. The receiver can then take over the property, change the locks, and any tenant will then be required to make any rental payments to the receiver.

The receiver will be responsible for the property and the borrower is effectively shut out. In cases where the borrower resists or impedes the receiver an application will be made to the High Court for an order restraining such conduct and if the borrower does not comply he will find himself in contempt of court and facing severe penalty.

In most cases the receiver will sell the property at a time of his choosing. The proceeds of sale will be used to pay the receiver’s costs and any other charges on the property such as property taxes or management changes and the balance will be remitted to the bank. Receiver’s costs can be substantial and often receivers will fire sell, meaning that the borrower loses out. This is because any remaining debt after the sale has been complete and all the costs have been paid will be borne by the borrower.

Borrowers often bitterly complain abut the conduct of receivers and while their complaint carries much moral weight, the legal position is very much set against the borrower.

In some cases receivers have been discharged by the Court for procedural or other irregularities but this is very much the exception. The best advice for borrowers is to avoid the appointment of a receiver at all costs.

 

Email us at  info@newbeginning.ie or call us on 01-5240000 to discuss options that might be of help to you.

Demand for Commercial Property Funding Remains High

New Beginning Funding’s ongoing market analysis shows the high demand for Commercial Property borrowing, not being matched by the available funding options. The trend of overseas funds continuing to seek liquidation or refinancing of distressed portfolios is continuing, however, we are also seeing a marked increase in the number of commercial borrowers seeking funding for, regular, commercial property acquisition.

These trends coupled with the continuing scarcity of pillar Bank funding options, in the Commercial property funding sector, means  commercial loans remain difficult to source, especially in the segment of the market below €3m, an area where, traditionally, banks would be the primary lender. The available non-bank funding options are still, mainly, targeting deals of €1m or higher and in larger urban locations.

At New Beginning Funding our Funding facilitation services offers all commercial borrowers a bespoke service which sources the best funding options, from across the market,  with transactions individually structured to offer most value to prospective borrowers.

New Beginning can source funding commitments, based on the specific needs of the borrower, in a matter of days. This means that clients avoid being forced to sell their properties, and with the assistance of New Beginning Funding, design individual loan structures which are sustainable over the longer term.

New Beginning Funding is looking to assist individuals and SMEs in sourcing a range of funding options, including refinancing, to enable settlement of stressed exposures. We can source a broad range of funding options, including Bridging and Mezzanine facilities, development financing and larger commercial facilities.

We encourage commercial clients with traditional or alternative commercial real estate funding requirements to contact us.

Our typical traditional funding transaction structure for income producing assets is based on:

  • 5 year term finance, with capital and interest payments calculated using a 20 year repayment profile
  • Up to 75% LTV, subject to rental income

The minimum loan size is €1,000,000- [we will look at deals below €1m but have found that the options available at this level are very scarce]

Many of our clients have agreed or are about to agree deals with funds who have acquired their loans.

Alternative funding transactions, by their nature, will be less formulaic and we encourage commercial clients to discuss their transactions with us to see if we can assist.

New Beginning Funding does not underwrite, but has partnered with providers of non-bank financing options, and we currently operate as an intermediary.

If you have a distressed loan and want to avoid the sale of the underlying property assets then refinance may be a perfect option for you. Often the refinance can be done through a new corporate entity or SPV meaning that the underlying property can be protected from any other exposure.

You can email me at  john.ryan@newbeginning.ie This email address is being protected from spambots. You need JavaScript enabled to view it.  or call me on 01-5240000 to discuss options that might be of help to you.