Why people will still invest in property in 2016

We plan to go through the maths soon of why the tax breaks that ended in 2014 were a bigger driver of a slow down in the market than the Central Bank rules, this aside, people will still invest in property.

The world of investment is relative, not absolute and for the €90 billion sitting in deposit earning 1% (at best) or less the implications are clear, you have to invest somewhere or get substandard returns which will eventually be eroded by inflation.

Along with a future of quantitative easing in Europe, the likelihood of a Dollar that will get stronger and a stock market that looks toppy to many, property will remain a focus for better or worse with many people who have money.

On the capital side you have a known shortage of property, that would lead some to believe there are significant capital gains to be had. On the dividend or yield side, you have strong rents which are still showing signs of rising.

Rents are certainly very strong versus the return on deposits even when you …

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MyHome.ie Property Investor Report, 1st March 2012

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:

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