Worth is a relative term, but if we consider only the financial perspective, then most people would agree that buying an investment property is a worthwhile endeavour.
Ireland is in its worst housing crisis since the 2008 recession. One of the main contributors to the crisis is the exodus of landlords from the sector over the last 24 months.
Because of this, there have been multiple “knock-on” effects; rents have risen, rental housing has become more sparse and ultimately the government have had to make concessions and implement incentives to attract landlords back to the sector.
What are the benefits of owning an investment property?
The benefits of owning an investment property are relatively simple. The property is a tangible asset which given the trajectory of the Irish property market will only increase in value year on year.
By purchasing a property to rent out, the landlord stands to benefit from not only the positive increase in the capital but also profits monthly from the rental amount paid by their tenants.
What are the disadvantages?
As with any investment, there will always be negative considerations. Becoming a landlord can be onerous if a proactive stance is not taken from the onset. The biggest landlord complaints are almost exclusively related to tenant-related issues (damage, rent not being paid, noise complaints etc)
Most of these issues can be avoided from the onset if a property management company is commissioned. A property manager is similar to an investment fund manager, they will manage the investment in its entirety. A good property manager will assist with marketing your property, tenant locating, referencing and selection, dealing with any changes to legislation that affect your property, ensuring it meets any legal standards and collecting rent.
People often consider property management as an added or unnecessary expense, but this in most cases could not be further from the truth. Because property management experts have rigorous and exhaustive systems to select the right tenants, they often save the property owner money and ensure that rents are paid in a timely and routine manner.
How much time will it take to run an investment property?
The amount of time an investment property takes to manage comes down to several contributing factors. If you are lucky enough to market the property and select a person tenant who pays on time and case very little wear and tear, then the property management should not consume too much time.
However, for new landlords, this is rarely the case. The unfortunate truth is that without expert advice the prospect of a dream investment home can rapidly become a nightmare.
As with any action taken in life experience breeds expertise, and new landlords unfortunately will lack both.
In our opinion, if you are considering purchasing an investment property and have no prior relevant experience. Then your best course of action is to consult a property management expert, they will be able to advise you on the best steps to take before purchase.
Is now a good time to purchase a property?
There are many factors to consider when answering such a complex question, but ultimately the answer from a purely financial standpoint is yes. The housing market, like any market is levied on many factors the most pertinent of which is supply and demand. Ireland has one of the fastest-growing populations & economies in Europe and subsequently, the supply does not meet the growing demand.
By purchasing a property in Ireland now, you can rest assured that the property’s value and its rental capability will both continue to increase over the coming years.
In 2022 property prices increased by a mean average of 8%, with an estimated further 4% increase forecasted for this year, it’s definitely an attractive time for investors to consider adding Irish property to their portfolios.
Property Management Dublin
For almost 25 years KPM Group has been delivering the highest standards in Property Management.
We act for private investors, lenders, as well as domestic and international funds. Sectors of expertise include Private Rental, build-to-rent projects, owner management companies, Local Government agencies and best-in-class Social Housing developments.
We are property management professionals for domestic and international fund investors, the financial services sector, Local Government agencies and the Owner Management Company sector, in which we started and where today we continue to grow.
