Sir, – while the “How to Invest” series is providing valuable information for privileged readers on managing their money, it has avoided scrutiny on the ethics of investment options available to the public.
The latest contribution to the series (April 14th) focuses on investment in housing, including real estate investment trusts (reits) and property funds. Readers should be under no illusions – these funds are better known as “cuckoo” funds, whose primary purpose is to generate profit from rental income. This is occurring in Ireland during a long-lasting housing crisis.
A cursory search on Daft.ie indicates that property funds are currently offering studio apartment rentals in Dublin for close to €2,500 per month. This is out of reach for the vast majority of workers.
And yet, more than a decade into the housing crisis, market rents are still increasing. Property funds need to keep rental income high to satisfy their investors, meaning investors are complicit in maintaining unreasonably high rental payments for tenants.
These property funds are also entrenched in private pension funds across the country, as a reliable source of return on investment. This has created an absurd scenario in which workers themselves cannot secure a home or afford to rent apartments provided by these funds, but their pensions are profiting on and thus perpetuating the high cost of rents.
Individuals who are investing have choices on where to put their money. It is recognised as unethical to invest in weaponry or fossil fuels due to their contributions to war and climate change. Housing is one the most prolonged social crises of our time, with more than 17,000 people homeless in Ireland, of whom more than 5,000 are children. Profiteering via reits and property funds during a housing crisis is inherently unethical. Anyone who is privileged enough to consider investing should invest their money elsewhere. – Yours, etc,
NIALL Mac DHONNAGÁIN
Harold’s Cross,
Dublin 6W.
