Buying Investment Property in Ireland

Buying Investment Property

Investment Property in Ireland

Looking to buy investment property in Ireland? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Ireland, the types of deals available and the likely returns. Remember, buying property in Ireland has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.

 

Property Investors in Ireland have received a lot of Government and economic support. Much of this support has come indirectly in the form of the lowest interest rates in history. This has been bad news for savers, but of course good news for those buying investment property in Ireland using mortgages.

 

Buying investment property in Ireland with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis.

 

Once these properties have been renovated and rented then investors in Ireland may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in Ireland or elsewhere.

 

More information on Property Secured Investments

How easy is it to make money from buying investment property in Ireland?

This model is an absolute pain the backside for potential property entrepreneurs in Ireland.

 

Which properties in Ireland should you buy? What areas of the Ireland housing market are going to give the best returns? Do you know the planning application process with the council? Or about the change of use regulations?

 

The question you have to ask your self about buying investment property in Ireland is how hands on you want to be?

 

If you want a new career as a developer or property project manager then go for it.

 

If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Ireland High Street then there are many investment funds, not readily available to the general public.

 

If you want a new career as a developer or property project manager then go for it.

 

If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Ireland High Street then there are many investment funds, not readily available to the general public.

Map of Ireland

Ireland ( YRE-lənd; Irish: Éire [ˈeːɾʲə] (listen); Ulster-Scots: Airlann [ˈɑːrlən]) is an island in the North Atlantic Ocean, in north-western Europe. It is separated from Great Britain to its east by the North Channel, the Irish Sea, and St George’s Channel. Ireland is the second-largest island of the British Isles, the third-largest in Europe, and the twentieth-largest on Earth.

Geopolitically, Ireland is divided between the Republic of Ireland (officially named Ireland), which covers five-sixths of the island, and Northern Ireland, which is part of the United Kingdom. As of 2022, the population of the entire island is just over 7 million, with 5.1 million living in the Republic of Ireland and 1.9 million in Northern Ireland, ranking it the second-most populous island in Europe after Great Britain.

The geography of Ireland comprises relatively low-lying mountains surrounding a central plain, with several navigable rivers extending inland. Its lush vegetation is a product of its mild but changeable climate which is free of extremes in temperature. Much of Ireland was woodland until the end of the Middle Ages. Today, woodland makes up about 10% of the island, compared with a European average of over 33%, with most of it being non-native conifer plantations. The Irish climate is influenced by the Atlantic Ocean and thus very moderate, and winters are milder than expected for such a northerly area, although summers are cooler than those in continental Europe. Rainfall and cloud cover are abundant.

Gaelic Ireland had emerged by the 1st century AD. The island was Christianised from the 5th century onwards. Following the 12th century Anglo-Norman invasion, England claimed sovereignty. However, English rule did not extend over the whole island until the 16th–17th century Tudor conquest, which led to colonisation by settlers from Britain. In the 1690s, a system of Protestant English rule was designed to materially disadvantage the Catholic majority and Protestant dissenters, and was extended during the 18th century. With the Acts of Union in 1801, Ireland became a part of the United Kingdom. A war of independence in the early 20th century was followed by the partition of the island, thus creating the Irish Free State, which became increasingly sovereign over the following decades, and Northern Ireland, which remained a part of the United Kingdom. Northern Ireland saw much civil unrest from the late 1960s until the 1990s. This subsided following the Good Friday Agreement in 1998. In 1973, the Republic of Ireland joined the European Economic Community while the United Kingdom, and Northern Ireland as part of it, did the same. In 2020, the United Kingdom, Northern Ireland included, left what was by then the European Union (EU).

Irish culture has had a significant influence on other cultures, especially in the field of literature. Alongside mainstream Western culture, a strong indigenous culture exists, as expressed through Gaelic games, Irish music, Irish language, and Irish dance. The island’s culture shares many features with that of Great Britain, including the English language, and sports such as association football, rugby, horse racing, golf, and boxing.

What are Property investment funds

These funds are hidden in plain sight. A global network of nods and handshakes at the Rotary club or on the Golf Course. Some people refer to these private investment vehicles as hedge funds or REITS. However, they are not. These are the funds that wealthy individuals and families invest in to get richer.

 

The barrier to entry to these exclusive clubs is around £50,000 although do remember that these private investor funds have collectively trillions of dollars under management.

 

And no, these funds are not available at the bank in Ireland, nor are they covered by the FCA. Your IFA or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.

Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.

 

If you don’t know about these firms, and opportunities then these investments aren’t for you.  You will need at least some experience with previous investments to be eligible and of course they are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.

 

Some of these funds don’t invest in property at all. You’ll know them as hedge funds. However, there are a considerable number of Asset backed Investment vehicles delivering significant income and long term growth.

 

Top three international investment properties realtors in the UK and Ireland

 

Physis Realty

Apollo Asset Management

The Carlyle Group

Is buying property investment in Ireland a good idea?

The top three actively managed funds directly significant offshore funds into the UK market seem to think so. Of course there’s much speculation about whether rates will rise and the uncertainty around buying property investment in Ireland. One fact remains often overlooked though, during the frantic and heated investment discussions around the dining tables of Ireland

Many individuals and families in Ireland want a safer, long term investment. They realize that property is a relatively illiquid investment and they simple was a property secured investment that provides a nice balance of income and capital appreciation.

Many people looking at buying investment property in Ireland have plenty of business and investment initiatives already in play, whether it be in Ireland, further afield or in a safer offshore investment fund.

Types of investment property in Ireland

The main types of property investment in Ireland is:

 

  • Undeveloped land in Ireland
  • Greenbelt land in Ireland (speculative investment)
  • Brownfield land around Ireland (and apply for planning)
  • Commercial property in Ireland
  • Direct Booking Vacation rentals in Ireland
  • Residential real estate property in Ireland
  • Operating property investment in Ireland
  • Distressed property investment in Ireland

Types of property investment deals in Ireland

The main types of property deals in Ireland are:

 

  • Buy to let in Ireland
  • Buy to hold
  • Serviced Accommodation in Ireland
  • Old Peoples Homes
  • Car Parks
  • Commercial Property in Ireland
  • Buy to change purpose

 

Buy to let in Ireland

 

A buy-to-let mortgage is a mortgage loan designed specifically for this purpose. Buy-to-let is the process of buying an investment property in Ireland that is specifically let and is one of the most common types of mortgage in the UK and many other countries. Obviously buy-to-let in Ireland does not have to be done with a mortgage and the sector does attract a significant number of cash buyers.

 

The purchase – to – rental of real estate is usually a residential property in Ireland, but some terms also include a small number of commercial properties, such as office space and retail space. As with a lease, the benefits of buying a rental property in Ireland as a landlord can include the ability to build up assets as house prices rise over time, as well as the benefit of a low interest rate.

 

The main risk is that a landlord may borrow to buy the property in Ireland, expecting the house to be sold at a higher price later, or that rental income will cover or exceed the cost of the loan.

 

Once the price has fallen, this lever could push the landlord into negative equity and, if he cannot meet the terms of his mortgage repayment, the bank will try to take possession of the property and sell it to get the money he borrowed. Banks in Ireland can lend to both landlords and tenants, suggesting that the capital is being used for investment rather than rental income, as a professional investor might do.

Buy to hold in Ireland

 

Long-term rental property in Ireland is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.

 

While some investors in Ireland may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.

 

Buying and owning real estate is an investment strategy for investors in Ireland who buy and hold real estate over a long period of time. The owner usually intends to sell the property later, but leaves it to you to help you buy or finance it.

 

The rental income from the property in Ireland generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.

 

The value of the Ireland property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.

 

Investors considering a Ireland property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.

 

If the investor plans to sell the Ireland  property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.

 

Convert Ireland property to Serviced Accommodation

 

For property investors in Ireland, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in Ireland and then converting these homes into serviced apartments to maximize yield.

 

The types of property used for serviced accommodation in Ireland are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.

 

Disadvantages of investing in Serviced Accommodation in Ireland

 

  • Serviced accommodation is more of a business strategy than a property strategy, and the workload is far more intensive. Seasoned veterans liken serviced accommodation investing in Ireland to the same as running a traditional bed and breakfast. It’s no surprise that the other name for Ireland serviced accommodation is a holiday let.
  • You’ll need to furnish your serviced accommodation in Ireland
  • You’ll need to clean the rooms and change the sheets every time your guests leave.
  • Who does all the laundry?
  • Who does all the cleaning?
  • Who’s going to do all the work for you?
  • How are the guests actually going to get in?
  • Massive Payments to Online Travel Agents
  • Are you going to have somebody to do a meet and greet?

 

Buying investment property in Ireland to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.

 

Buying Investment Property

Buying Investment Property in Ireland

Alexander Bentley leads Remedy Investments™ a private equity fund specializing in operational real estate. Remedy Investments™ has significant expertise in developing Luxury ApartHotels across Europe and the wider APAC region.

Alexander Bentley is the creator & pioneer behind Remedy Wellbeing Hotels & Retreats. Under his leadership as CEO, Remedy Wellbeing Hotels™ received the accolade of Overall Winner: International Wellness Hotel of the Year 2022 by International Rehabs.

Because of his incredible work, the individual luxury hotel retreats are the world’s first $1 million-plus exclusive wellness centers providing an escape for individuals and families requiring absolute discretion such as Celebrities, Sportspeople, Executives, Royalty, Entrepreneurs and those subject to intense media scrutiny.

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