The buy-to-let sector in Ireland grew vastly in all parts of the country during the period 2000 to 2006 . During the
first three months of 2008, residential investment mortgages accounted for 13.3 per cent of all mortgages; the figure was 13.7 per cent in 2007. The tax relief available for investors greatly increased the popularity of buying to let as an investment. Some say it was the rush to become landlords that resulted in the problems with the property market in Ireland.
Now – after the property price crash some landlords are getting yields on buy to let in 2015 as high as 11% in some parts of Ireland. For cash buyers – buy-to-let in Ireland is now looking very attractive. With interest rates on deposits very low – many cash rich investors are looking to rental property for better returns.
With mortages harder to come by – many younger people are having to rent instead of buy – so the landlords are doing well again it seems.
There is still a surplus of housing in Ireland – but it is mainly outside the main cities. Anyone looking for work is moving to cities such as Dublin , Cork and Galway – where there appears to be a shortage of quality rental accommodation.
The Irish property market is currently experiencing a stable rental market (rising in some places) a stagnant mortgage market and hugely discounted prices. Investors can find some good bargains if they buy the right property in the right location.
Ireland still has the youngest population in Europe (average age 34) and astill attracts some of the biggest businesses in the world.
Ireland is home to: – 9 of the world’s top 10 medical companies, such as Boston Scientific and Medtronic
Dozens of major technology giants, including Microsoft, Intel, Google, Facebook & Ebay – and top games companies, such as EA and Activision have offices in Ireland.
With many workers coming to Ireland on temporary contracts – rented property is their favourite option.
Irish and foreign investors are also attracted by the lowest corporation tax rate in Europe at 12.5%
Another attraction is that Residential investment properties held for more than 7 years are exempt from capital gains tax
Look for seek property with the following characteristics:
• Located in main cities or towns – even better with large student population .
• High occupancy rates
• Strong gross rental yields (10-12% minimum)
• Close to schools, major employers and major transport links
• Price per unit of less than €200,000