Best Value Property 2016
The big question as we enter a new year is where the best value property 2016 is to be found. There are a number of markets around the world that can claim the title. In the Euro Zone it is difficult to argue against the case to be made for the Irish property market.
Having suffered a catastrophic economic reverse from 2008 to 2012, the Irish investment property market is in the process of staging a strong recovery. Retail has recovered strongly over the past two years in particular with office and industrial investments following closely. One of the problems facing the market now is that very little has been built over the past decade. This is leading to property shortages, particularly in the capital, Dublin.
Property can be sourced in Ireland offering reliable returns from 7.5% to 10%, depending on the area, strength & length of covenant, type of property and tenant.
Care should be taken on a number of fronts. Particularly as there are still some historic covenants causing widespread problems. Quite a few overseas companies have also declared bankruptcy in Ireland to address the revaluing property rental payments. Also, newer contracts are generally extending no further than 10 years. In the past 20 to 35 year covenants were not at all uncommon. This is what you would expect in a recovering market. Tenants are looking for security and landlords have found it difficult to rent out properties until recently.
It is our opinion that there is still remarkable value to be had in Ireland and we expect this to continue into 2016. This is in a market that continues to show signs of strong recovery. Let Irish Property Sourcing help you find the ideal investment for your needs. Drop us a line on info@IrishProperty.org and we’ll assist in any way we can.