SSIA Maturity

C

Csider

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What do people think will happen when SSIA accounts start to mature and people have access to what will be perceived as a €20,000 windfall or €40,000 per couple in many cases.

Will it cause a spike in house prices or add fuel to inflation?

What options are open to the government of the day to prevent this? Will they offer a roll over type scheme and try and link this money into people funding their pensions for example?
 
I think it's likely to cause inflation on car prices, conservatories, TV/HiFi etc.
 
Will they offer a roll over type scheme and try and link this money into people funding their pensions for example?

There has been some speculation about this already although no hard facts. It would seem like a judicious thing to do to allow people to give people some incentive to roll their investment over in some way. Who knows...
 
What will happen?

Whoever is in Government at that time will be re-elected.
 
SSIA

So does this mean that people who are some years away from having a deposit saved and who may be looking to a matured SSIA as a "deal sealer" could find themselve once again priced out of the market because of fresh demand from 2006 on?
 
Quite likely

I'm sure most people who are selling will be aware of the extra cash floating around - same will be true if selling cars, houses, holidays, drink, furniture etc
 
Re: Quite likely

So does this mean that people who are some years away from having a deposit saved and who may be looking to a matured SSIA as a "deal sealer" could find themselve once again priced out of the market because of fresh demand from 2006 on?
Click to expand...

I'd have thought that most FTB's wouldn't be putting their money into SSIA's, so I'd guess that it wouldn't have a huge impact on the starter-home market - More likely to have an impact on the 'trading-up' market - Just my humble opinion.
 
Re: Quite likely

I suspect both Government and Istitutions will offer sweetners to encourage people to keep saving.

Government for the reasons mentioned above and in case inflation is still a worry at that stage.

Institutions becase they are not going to want to lose such a substantial lump sum and monthly premiums from their books.

However, I also suspect that most will cash them in regardless of sweenters.
 
!

To quote Rainy Day "I'd have thought that most FTB's wouldn't be putting their money into SSIA's, so I'd guess that it wouldn't have a huge impact on the starter-home market - More likely to have an impact on the 'trading-up' market - Just my humble opinion"


...NOT A CHANCE - myself & peers who wud be in that bracket have all invested, I don't know any potential ftb who hasn't... my belief is it will fuel house prices yet again!
 
Re: !

my belief is it will fuel house prices yet again!
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so, suspecting that, why didn't you and your peers invest in something that would have allowed you to get out early without penalty? You might not have gotten the 25% from the gov, but you could have gotten in before the spike in prices.

Just curious.

-Rd
 
SSIA

I think this is true. I've been paying the full whack into my SSIA for nearly a year now and I think I'm going to quit altogether for the next couple of years so I'll have my money when I need it i.e. to buy a house. Its tempting to keep up the contributions knowing that I'll make a few grand over the life of the scheme but its no use to me if I can't get it when I need it most.

Anyone have any recommendations for somewhere to put a few hundred a month away that's quick access and pays a good rate?
 
You should think long and hard about diverting your SSIA contributions to another savings scheme as the SSIA is generally a no brainer for regular savings. If at all possible you should keep up the SSIA contributions even if you simply defer using the maturing fund for funding a house purchase or reducing your mortgage borrowings. Don't forget that SSIA maturity is not that far away in many cases. In the meantime the best standard deposit rates on offer are listed here.
 
What a brilliant title for this thread! I couldn't have penned a better one, Csider!<!--EZCODE BR START--><!--EZCODE BR END--><!--EZCODE BR START--><!--EZCODE BR END-->Who believes that maturity, by any definition, will be applied when the squandering and scrabbling begins? Neither Irish sellers or buyers will exercise any judgement from EOY06 onwards. Best take a sabbatical in the Czech Republic for FY07.
 
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