The Irish property and housing market have been working to recover since 2012, solely funded byways of international capital.
That’s nearly 6 years of borrowing to achieve a market that remains in the midst of a crisis.
Foreign investors have for long been a very prominent component in the market as they have achieved multiple ways of investing in properties and homes in which provided for a strong return.
International investors have been tracked as using a strategy in which all of their funds went to purchasing the most inexpensive properties in the cities of Ireland and reselling them at extremely high prices to buyers.
This is a smart way for investors to get the highest return possible and make the most out of their investment contributions.
Some investors have begun in the flipping business in which they would sometimes reconstruct entire office blocks for re-selling. By doing this they as said above, are able to buy for extremely low prices and make a large profit margin when reselling.
The latest development in the housing market has been the revelation of foreign investors that there is nothing new to come. The most significant investments for them to continue forward with is the build-to-let housing scheme.
It has been found that currently, as buyers simply cannot afford the price of homes, there is more money for investors to build homes with plans of renting them than to build homes to simply sell them.
Many looking to buy have nearly ended their search and begun looking to rent instead as it has proven as a more fiscally responsible alternative.
Properties all over Ireland, specifically Dublin have been being purchased by investors with the goal to rent them out and quickly remake all their money in the sale.
Buyer, Carysfort Capital, is a strong example of an investor buying up many properties around Ireland with the sole intention to rent them out.
With the high continuing costs of houses in Dublin, there is virtually no worry that the demand for rental prices will also fall, though most renters would rather be buyers.
Apartments are being marketed as homes, suggesting that residences will stay there for the course of their life, as would be done with a home.
With this marketing scheme, home buyers are being targeted and swayed into entering the rental population.
Though investors are seeing a strong outlook as far as the prices of rents are continuing upward, there is a reason to be worried that the overall government housing scheme is not succeeding as planned.
Great for investors, not so great for the nation.