The Flip Side of Ireland’s Rental Crisis

There is no crisis without opportunity; sometimes it can be difficult for most people to spot the opportunity but you can be sure that it exists, hidden from plain sight, just waiting to be exploited by the right person.

In fact, the ancient Greek word ‘crisis‘ also translates into ‘opportunity’. 

We saw this in the Irish property market back in 2011/2012, when foreign funds and investors started to buy up chunks of undeveloped land nationwide or entire blocks of unfinished apartments.  Our crisis opened up an opportunity for cash-rich investors who were willing to take a risk that things would improve which, of course, they did – eventually.

So, looking at the marketplace today, savvy investors will no doubt be trying to spot the hidden opportunities in our most recent crisis – our private rental sector.  Earlier this week, on foot of the latest Daft.ie report on the sector, news headlines screamed that we now have fewer available rental properties in Ireland than ever before in recorded history.  And this is not just a Dublin problem, this is happening right across the country.  Here in the South East, quality rentals, particularly houses, are at an all-time low. 

We know that the answer is to build more houses and apartments, we know that developers are trying to do just that, but here is the situation – even if developers’ funding and planning permissions are in place, it is still going to take 18 to 24 months to see any significant delivery.  In reality, it is probably going to be three to four years or more before we see completed developments released to the market in South Wicklow and North Wexford in any real scale.  This means that we are not likely to see much relief to the rental market crisis for some time yet.

If this crisis is set to continue, and it certainly looks that way for the moment, then we need investors looking to the opportunities hidden within the crisis.  We need private landlords back in the market, despite them being hit with burdensome taxes and compliance issues, we need more accommodation right now than the State can reasonably provide. 

One positive step forward is the reclamation of mortgage interest paid by landlords as a legitimate expense – this is happening slowly over successive annual budgets but at least it is happening.

While increased taxes, reduced tax reliefs, onerous RTB and legislation compliance – not to mention rising property prices and low available stock – all make one-off residential investment much less attractive than it might have been a decade ago, we know that rental returns are exceptionally strong at the moment is this is set to continue for the next few years.

Here at Kinsella Estates, we understand that investor finance is more difficult to come by and certainly, margins are much tighter than ever before; however, we also know that affordable houses and apartments can yield annual returns of up to 10%.  For a cash investor, we know that this makes sense.

At the moment we are listing a few of the last remaining homes in County Wicklow for under €100,000.  While some need some upgrading work, others are ready-to-go, high-yielding  investments. 

For example, one of our superb houses in South Wickow, 25 Coollattin Road, Carnew offers unbelievable value at €99,000 for a spacious, four-bedroom house and garden within walking distance of the town, local school and shops.

 

25 Coollattin Road, Carnew, County Wicklow:

 

If you are considering selling in the South Wicklow and North Wexford areas, call into one of our offices (located in Carnew and Gorey) and chat to any of our expert team or you can contact us online at www.KinsellaEstates.ie.  We are happy to facilitate overseas buyers and sellers via Skype or similar, outside of regular office hours.

 Alternatively, email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718