We are please to bring you some interesting analysis on the residential investment property market in 2012. A big thanks in advance to MyHome.ie who made this possible by giving access to their data. You can get the report here or by clicking on the image to the right.
It was created by Karl Deeter of this firm and Frank Quinn, a lecturer in valuations at Senior College Dun Laoghaire. The valuation models used are Discounted Cashflows, the Investment Method and one developed by Karl which is an after tax comparison against bank deposit returns.
Tom Dunne of Dublin Institute of Technology Bolton Street kindly critiqued the report.
The general findings were that property is still overpriced in our main cities for investors (buyers face different costs/taxes/incentives). This over-valuation will adjust but one big inhibitor to investing in property at present is the taxation of it.
The coverage thus far (eg: Indo) has rightly pointed out that taking the ‘index’ price and average rents shows prices are too high. However, this dynamic is not always the same for owner occupiers, for instance, at the Allsop/Space auction today we saw properties starting off over-valued (see the page one the report tracking this) that were bid up beyond ‘fair value’; which to some degree demonstrates a ‘premium’ that exists in some neighbourhoods which are dominated by owner occupiers.
We hope you found this report useful as part of the ongoing effort to understand our very complex property market.