Property is fast becoming the hot… well… property… investment again in Ireland.
Sure, after the 2008 property crash you may ask, why? However, the truth is that while it may go through a downturn from time to time, it’s still one of the safest and most lucrative investments out there. It’s also a fantastic passive income opportunity.
But you shouldn’t just ask me. If you look at the wealth behind most of the richest people in the world, you’ll find that property is one of the main reasons for their wealth
And if that’s not a good enough reason, then, here are 8 more.
1. Population growth
Nothing shoots prices up like a lack of supply versus a huge demand. And that’s exactly what’s happening in Ireland at the moment,
Our population has risen by 64,500 in the past year to 4.92 million, while the population of Dublin has increased to 1.4 million (a 1.8% rise in just one year).
Very few other developed countries are seeing growth like this, and it’s expected to continue until 2031 at least.
Meanwhile, in the same period (2011-2016) that our population grew by around 4%, our total housing stock grew by just 0.04%
You don’t need to have a degree in statistics to realise that it will take years to sort the current housing crisis out.
Part of the reason for that, is people are struggling to buy their own properties due to tighter lending regulations and high property prices.
Added to this is the recent statistic that property prices are starting to fall slightly for the first time in 25 quarters.
All this points to property being a lucrative investment for the foreseeable future.
There is only so much room on this island after all. So, buying to let now guarantees a steady supply of tenants long into the future.
2. Generation Rent
Millennials are reportedly the first post-war generation worse off than their parents. While that may not be the case for an entire group of people, it’s certain that the impact of the 2008 crash and all its knock-on effects have created a generation of people caught in the rental trap.
Added to this, the age-old Irish obsession with having your own patch of land has been eroded by changing attitudes to rent and a more multi-cultural, transient workforce.
Instead, we are moving towards a more European model of long-term renting, and that sounds perfect for you as a potential landlord.
On top of just thinking for yourself, getting into the property market now will also allow your future generations to be in the property market after you too.
3. Instant equity
If you do your research and buy property at the right time, you can make some nice instant equity out of the property market.
By carefully studying market prices you might be able to buy something for say, 275k, that’s actually worth closer to €300k. That’s €25k straight away. If you put that property back on the market in three months’ time, you’ve already made a tidy profit.
Another consideration is to convert a large house into a serious of smaller lets. It becomes a different type of asset then, and the value of the property will change with it too.
The fact that property can be repurposed into a more valuable asset is one of its great strengths.
4. Timing
One of the main reasons’ property has fallen slightly lately, is uncertainty over Brexit.
People in general, don’t like uncertainty and they don’t like to risk their money at any time.
While prices may drop over this, they also may not. So here’s the thing: There’ll always be an excuse not to buy, and you’ll always hear stories about someone who got lucky buying at the right time.
What you need to do is forget about all that and buy what you can afford now.
No matter what’s going on in the economic or political world, if you do the right research and have a good idea of your goals, the timing of your property shouldn’t make any difference if you’re in it for the long term.
So, don’t procrastinate, you’ll be better off in the long run.
5. Brexit opportunities
Sure, Brexit is bad for Ireland and bad for business overall, but there are opportunities to take advantage of the situation in the property market. None more so than Dublin being one of the preferred destinations for corporations based in the UK, who still want access to the EU market.
While we don’t know how everything will play out for a few years yet, there’s no doubt that cities like Dublin will benefit in terms of jobs, even if some industries are negatively impacted along the way.
So, don’t wait until it’s all settled to jump into the market. You might have already missed the boat by then.
6. Poor pension performance
Over the last ten years, many people have grown concerned at the strength of our pension pots.
As our population ages, it’s becoming clear to everyone that there simply isn’t enough money in these pots to properly support us when we retire. The effects of this are pushing up retirement ages so that it might hit the mid-70s for children born today.
On top of that, the shortfall of income between what you are earning before retirement and what your pension will provide will be significant.
However, the monthly income of just one buy-to-let can make up for that shortfall. Just think about the income ten properties could give you.
7. Strengthening your overall portfolio
Years ago, your parents or grandparents would tell you that the safest place for your money was in the bank. Increasingly, though this is not the case. Remember, only €100k is guaranteed.
So, if you do have some savings built up, then property is still one of the safest places to invest your cash.
The trick is not to put all your eggs into one basket here, but you should certainly consider it as part of your overall portfolio.
8. Stability of Irish Property Stock
Thankfully we live in a very stable location, with relatively few of the ‘globalisation’ problems affecting the world in recent years.
Being a small, neutral island with many friends in high places has helped Ireland’s burgeoning reputation rise as a good place to invest.
So, although buying property here may be more expensive than say, in Turkey or Thailand, there is also a lot more reassurance that your property will avoid or survive any political, economic or geophysical turmoil than those locations
Here at Platinum Property, we’re always happy to help with any part of the property process. Click below to find out more