Private equity firm WL Ross is convinced that Ireland will rebound but warns of ‘moral hazard’
BILLIONAIRE INVESTOR Wilbur Ross believes some will think he and his fellow members in the consortium bidding for an Irish lender have lost their minds.
However, an investment by WL Ross in Educational Building Society (EBS) is as “counter-intuitive” as the firm’s recent purchases of banks in Florida and Michigan, two of the states worst hit by the US subprime mortgage meltdown.
That is our job,” says Ross of his investments in businesses that others would see as far too risky.
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HOMEOWNERS could face paying an €80-a-month property tax under a plan drawn up by the country's top economic think-tank.
The charge would be based on the value of homes, and middle-income earners would end up providing most of the tax generated, the study by the Economic and Social Research Institute says.
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Derek Brawn, whose book on the property market predicted the bursting of the bubble, said first-time buyers should buy now once they find a property at the right price.
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With few options available to our government for incentives - Now is the perfect time to re-visit, that old chestnut, stamp duty!
With genuine reasons for believing that, now more than ever, we have a chance to tempt thousands of heavily saving, rent paying, sitting on the fence purchasers back to property. If the stamp duty was reduced drastically, it could encourage an increase in levels of activity and the multiplier would benefit our economy. Consider that rents will increase while interest rates do too. What a great time to strike a deal just before any stamp duty rate reduction is announced? Will potential purchasers look back at these days and wish they had purchased? I guess we'll have to wait and see.
We need a healthy property market to help bring us out of this recession. Let's hope in early December our government will incentivise as well as cut and tax. Here's to the carrot rather than the stick and 1% stamp duty in December..