The housing crisis isn’t just confined to the younger generation

Housing The housing crisis isn’t just confined to the younger generation

Sinead Ryan advises on the options available to older people

Getting a mortgage isn’t an option in later life. This is because banks don’t like lending to people on pensions. Bank of Ireland will lend to the self-employed aged up to 70, and some of the non bank lenders new to the Irish market like Avant Money, ICS etc may also be prepared to discuss options. The term however will be fixed to the working life of any individual.

While for many young people the chance of finding, never mind affording a home of their own, is at a critical level, it is often the older generation which comes in for criticism for ‘rattling’ around in their big houses, empty-nesters taking up a family home by not downsizing or, more realistically, struggling on fixed incomes with soaring prices on gas, electricity and property tax, or fretting over the strident environmental measures retro-fitting older homes will require of all of us.

So, when it comes to our homes, here’s what you need to need to know

Finance Getting a mortgage isn’t an option in later life. This is because banks don’t like lending to people on pensions and previous poor experiences during the Celtic Tiger resulted in a number of cases in court and via the Ombudsman which showed up the financial sector for putting older people in debt. Some of these cases resulted in insolvency and repossessions and so these days, getting a loan is very difficult. Bank of Ireland will lend up to 70, for self employed people and some of the non bank lenders new to the Irish market like Avant Money, ICS etc may also be prepared to discuss options. The term however will be fixed to the working life of any individual.

Credit unions are usually the most flexible when it comes to term loans; as long as you have sufficient income to service it (and pension income is more secure than any other), you’ll be met with a smile. A small number of non bank lenders have again begun offering ‘equity release’ plans, or lifetime loans. These mortgages are not repaid during your lifetime, but after you pass away, from the sale of the property. The upside is you get cash now; the downside is that the interest roll up can be hefty, and because the ‘term’ of the loan is unknown, it could be many years before it is able to be repaid. That means the

People who rent out a room in their house can earn up to €14,000 p.a. tax free. They do not become ‘landlords’ in the traditional sense, so don’t have to worry about registering with the Tenancies Board. Rent can include food, household bills etc and you must be living in the home also.

Savvy savers are ruling the roost in Ireland

According to the Central Bank, the net wealth of Irish households was €100 million more in mid-2021 than it was in mid-2020. Why? Mainly because of rising house prices - the roost really does rule.

But it’s also because share prices are generally on the up and - of course - spending has been more limited due to lockdown restrictions. We simply haven’t had the ability to spend, and that’s meant we’ve been saving more. While that may only be temporary as restrictions are lifted, current net wealth is €935 million and will exceed €1 trillion in 2022 if it keeps increasing on the same trajectory.

Of course, these fi gures only paint a general picture - this may not be the experience of many Irish households as what the fi gures don’t show is how this wealth is distributed.

But the fact remains that gross household savings are higher than they were before the pandemic, which can only be a good thing, especially in times of uncertainty. As of September 2021, Ireland’s savvy savers set a record of €135 billion in savings.

And that doesn’t take into account savers who deposit cash into overseas savings accounts, which can make your money work harder for you. While Irish savers can currently choose from an average 0.037% interest rate on a one year term deposit or 0.06% average on a three year term, there are better rates to be had. Raisin Bank, for example, helps Irish savers access more competitive rates from providers across Europe, and currently off ers one year terms with interest rates at 0.56% and three year terms at 1.05%.

And if you have a savings account with Ulster Bank, there’s another reason to save elsewhere, since the announcement that the bank is pulling out of Ireland and has given its customers until mid-2022 to close their accounts.

This obviously impacts more than savings accounts, so what are your options if you’re an Ulster Bank customer? Firstly, it’s important to start shopping around soon, as you probably don’t want to lose access to everyday banking. As an Ulster Bank spokesperson said: “We strongly encourage customers not to leave it until the last minute to avoid possible bottlenecks of account opening activity in the second half of 2022.”

If you hold a current account, you have a number of options available to you. Don’t forget to check the fees and charges at each provider, so you get the account that suits you best.

If you have an Ulster Bank savings account, your money is protected up to €100,000 per person, or €200,000 for a joint account. Again, shopping around is important as you’ll be able to fi nd the most competitive interest rates, and as we noted above, it may be worth looking to Europe to maximise your deposits. If you have a lump sum tied up in a current account, now might be a good time to make the most of it by putting it into a higher interest rate deposit account.

To fi nd out more and access competitive interest rates from across Europe, visit www.raisin.ie/seniortimes

Local authorities provide two grant types for people who need to upgrade their home for mobility problems. Both are means-tested, which means you won’t qualify unless your income is below a certain level.

bank takes a higher risk, but charges a higher premium for it.

In the past equity release plans were generally a terrible idea, because on occasion, it resulted in the amount to be repaid being more than the value of the house so families were saddled with loans after their parents had passed away. In some cases, they didn’t even realise it, so the ‘inheritance’ they received was a debt!

In order to apply for a lifetime loan, the applicant must be at least 60 years old. Generally, the share of the property you can borrow against increases with the age of the applicant. For example, an 80 year-old can borrow against a higher share of the property than a 65 year old, for obvious reasons. At any rate, it’s unlikely you would receive more than 20 – 40pc of the house’s value.

The Competition and Consumer Protection Commission (CCPC) says equity release schemes are really only worth considering if you need a lump sum, don’t want to live elsewhere and are not concerned about passing on the value of your home to your family on your death. These days, equity release loans are better than their original counterparts, but should never been undertaken lightly.

Safeguarding Ireland urges people to explore all other options before equity release, including budgeting and money management from organisations like MABS (mabs.ie, Tel. 0761 072000), using State loans, housing aids or SEAI grants (see below) for essential remedial work, charging any adult children living with you rent, or renting out a room in your home tax free under the rent-a-room scheme. Finally, it warns, “It is very important to understand how it [equity release] could impact on your access to/eligibility for State schemes and particularly a Nursing Homes Support Scheme (Fair Deal) application and Non-Contributory Old Age Pension”.This means that means-tested benefits may not be available to someone who has used equity release, as they now are considered to have ‘means’.

Local Property Tax LPT is a big burden on older people, with fixed incomes but rising house prices. Revenue permits an exemption from the tax for those whose home is specially adapted because they are incapacitated, or if it is unoccupied due to long term illness.

Rent a Room People who rent out a room in their house can earn up to €14,000 p.a. tax free. They do not become ‘landlords’ in the traditional sense, so don’t have to worry about registering with the Tenancies Board. Rent can include food, household bills etc and you must be living in the home also. Houses with a separate entrance (e.g. basement) can qualify, but not if the accommodation is in a separate building. The RAR scheme is not assessed as ‘means’ if you are on the State or Widow(ers) non contributory pension, where you would be living alone without it. Revenue only permit the scheme to be used for long term arrangements (e.g. a student for an academic year), rather than Airbnb.

Live-in companion While having a carer from an agency to assist with daily living can be extremely expensive, one novel option is available for older people who don’t have onerous medical needs, but simply want a companion, someone to help them with light chores, or overnight security. A number of agencies link up people in need of

accommodation (not just students, but many single middle-aged people from overseas and Ireland), with older people who have a room to spare and want to trade it for company and care. Elderhomeshare.ie and Thehomeshare.ie are such organisations. The matching is done carefully, there’s a ‘get out’ clause for either party, and a commitment to number of hours of care, or a small rent as the parties decide. It’s important to note that the companions are not medically qualified or HSE-led carers, but it can be a great low cost solution for the right people.

Right sizing Moving to another home in retirement isn’t always met with joy, but where it is a choice rather than forced, the important information is that there is no Capital Gains Tax on selling your principal private residence. People living in valuable houses in salubrious areas may make enough to buy a Duplex, live in the larger part, and rent out the smaller flat for additional income. The income itself would be liable for income tax, however, but you do get to decide who your neighbour is! You’re also likely to have vastly smaller energy bills as all new homes are built to rigid standards.

Retro-fitting We are all going to be compelled to retro fit our homes to make them energy efficient. It will cost a great deal of money, and for those in draughtier, older homes, more than most. There are generous grants available toward insulation (attic, wall), installing heat pumps and solar panels. None are means-tested, and as long as the house is pre-2006 (2011 for solar panels), you qualify. The work is done by local tradesmen and the grant paid immediately. You can find out more on www.seai.ie, but bear in mind the grants are only designed to pay around 1/3 of the price of the job. If you need a loan, credit unions are better placed than banks to offer one: Kevin Johnson, CEO of the Credit Union Development Association (CUDA) runs Ireland’s first end-to-end home retrofit scheme – ProEnergy Homes – in partnership with SEAI and a retrofitting company. ‘It takes all the leg work away from the homeowner’, he says. ‘They simply complete an application in their local credit union, a property assessment will be done a report generated. It’s a unified process, they get a dedicated project manager and access to lowrate loans to finance the work’.

He adds the average spend is about €20,000 made up of grant, savings and loans. For a budget of €40,000 to get a home to a B2 rating, the grant covers €14,000, perhaps they have €15,000 in savings, and the finance borrowed of €11,000 would see average repayments of €165 per month over 7 years”.

Improvement aids for the Home Local authorities provide two grant types for people who need to upgrade their home for mobility problems. Both are means-tested, which means you won’t qualify unless your income is below a certain level. They are also priority based, which means the council decides who has the greatest medical need, rather than first-come-first-served. That said, it is worth applying and at least you’ll be on the list.

The first grant is the Mobility Aids Grant – it’s for minor works (up to €6,000) such as the installation of grab-rails, access ramps or a stair lift.

The more valuable one is the Housing Adaptation Grant. This is where more comprehensive alterations are required for someone with a physical, sensory or mental health disability. It includes making the home wheelchair accessible, put in an extension for downstairs bathroom or ramps and stairlifts. The maximum grant is €30,000 but the ‘means’ are easier to qualify for: total household income can be up to €60,000 p.a. for consideration.

State grants won’t be given retrospectively, so you must be approved before the work begins. Your local health centre, citizens information or TD can help you with applications.

While having a carer from an agency to assist with daily living can be extremely expensive, one novel option is available for older people who don’t have onerous medical needs, but simply want a companion, someone to help them with light chores, or overnight security. Sinead Ryan presents The Home Show on Newstalk every Saturday morning at 8am or podcast.

Keeping your Heart Happy, Naturally!

There are usually no symptoms for high cholesterol, so it’s very important to get your cholesterol checked annually. The Irish Heart Foundation recommends that healthy adults should have a total cholesterol level below 5 mmol/L. A simple blood test will measure your blood cholesterol level. One of the most common causes of high cholesterol levels in the blood is eating too much saturated fat.

Eighty per cent of heart disease is preventable, simply by making a few dietary and lifestyle changes! Taking plant sterols daily should be your first step in lowering LDL ‘bad’ cholesterol. Plant sterols are naturally occurring substances found in plants and are important for cholesterol lowering thanks to their ability to partially block cholesterol (produced by the body and found in food) from being absorbed into the blood stream from the gut. Normally, about 50% of cholesterol is absorbed from the digestive tract into the blood stream, but when plant sterols are taken, it drops to just 20%. This lowers cholesterol in people

High cholesterol is a risk factor in the development of coronary heart disease. New research confirms that 1.6g (2 tablets) Zerochol® plant sterols can lower cholesterol by 17% in three

Alongside taking plant sterols, you should increase your intake of omega-3 food sources such as oily fish (sardines, mackerel, anchovies, salmon), seeds such as flaxseed and nuts such as walnuts. Thousands of clinical studies have shown that increased intake of omega-3 fats EPA and DHA enhance overall cardiovascular function. Omega-3 fatty acids EPA and DHA together contribute to the normal function of the heart, reduce blood triglycerides (a major risk factor for heart disease) and reduce blood pressure if high, overall improving heart health considerably. Omega-3 fats are found in high amounts in oily fish and to a lesser degree in nuts and seeds.

The European Food Safety Authority (EFSA) state that you need 250mg EPA and DHA daily to support heart health, while 2-3g omega-3 EPA and DHA is needed to lower blood triglycerides and blood pressure. Eating oily fish twice a week – such as salmon or sardines, provides a healthy dose of omega-3 EPA/DHA. Alternatively, you can take a high-quality omega-3 supplement such as Eskimo-3 to ensure you obtain enough omega-3 daily.

Lack of regular exercise, being overweight, drinking a lot of alcohol and smoking can also raise cholesterol levels, so it is important to make lifestyle changes to limit your risk.

Zerochol’s Cholesterol Lowering Program

Changing habits is never easy, so we have created an online support program packed with lots of diet and lifestyle tips and reipes to help support you in your cholesterol lowering e orts.

Available in health food stores, pharmacies and online eskimo3.ie and zerochol.ie. Sign up for the 6 week program - zerochol.ie/register