Over 20,000 Irish people earn €200,000 per year
Just over 20,000 people in Ireland earn more than €200,000 per year, according to the latest Revenue Commissioners estimates.
The number of high earning professionals or business people in the Irish workforce has a huge impact on the future direction of the domestic property market.
The rise in property prices is believed to be fuelled by cash buyers, which is a limited pool. Once the supply of cash buyers is exhausted, the rise in property prices will grind to a halt or fall unless this demand is taken up by mortgage-backed buyers. With some banks lending roughly four times salary levels, the Revenue figures indicate that there is the potential for up to 20,000 mortgages of approaching €800,000.
This is a very small pool of buyers for high-end properties in the more popular suburbs of Dublin, Cork, Galway or elsewhere for some of the grander rural homes.
One auctioneer told the Sunday Independent that the number of cash buyers had fallen from about 80pc down to 60pc in recent months as he had begun to see a noticeable increase in the number of mortgage-financed buyers. KBC Bank, Permanent TSB and Bank of Ireland financed buyers were now active in the market, he said.
"In 2012, our returns record 19,341 people earning over €200,000. It is estimated that the number of taxpayers with income in excess of €200,000 for 2013 is 21,095, and for 2014 is 20,800," the Revenue Commissioners told the Sunday Independent last week.
"The 2013 and 2014 figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2011, adjusted as necessary for income, self-employment and employment trends in the interim."
Sunday Indo Business