Geography
The Emerald Isle of Ireland is made up of 32 counties nestled amongst its rolling hills, clusters of lakes and windswept coastal regions. Comprised of two provinces, Leinster and Munster, the country has diverse ranges of regions for potential holiday home buyers to consider. In the east, Leinster offers the capital, Dublin, as well as Wicklow, Kildare and Meath, while Munster has Counties Limerick, Tipperary, Cork and Kerry. Ireland’s terrain provides a unique range of natural and architectural backdrop that shapes the real estate market.
Cost of Living
The most expensive part of buying a holiday home in Ireland is undoubtedly the cost of living. Ireland has a high standard of living, and taxes are fairly low when compared to other European countries. But, rental costs in Ireland are among the highest in Europe, and the cost of buying a house rises each year, averaging around €320,000 (based on 2017 figures). With its nice weather, vibrant culture and affordability, however, Ireland remains a popular choice for holidays, long-term rent or even permanent relocation.
Stamp Duty
Up to a certain price, people who buy a holiday home in Ireland do not have to pay stamp duty. In 2020, this is €500,000, but the rates can be higher depending on what part of Ireland you are buying the holiday home in. For example, stamp duty can be as much as 7.5% for those buying in the Northern Dublin areas of Finglas and Clondalkin. This amount is subject to change, so be sure to make a budget that accounts for any fluctuations in stamp duty.
Financing your Purchase
Financing your purchase of a holiday home in Ireland may similar or different, depending on where you get the loan. Generally, when it comes to mortgages in Ireland, banks require a 20% deposit up front, and have fixed repayment periods of up to 30 years. Depending on the type of loan you choose, you may also have to pay a booking fee, mortgage broker fees and other expenses. A lawyer may be needed in order to help secure the mortgage and handle paperwork surrounding it.
The Market
The market for holiday homes in Ireland is varied. Prices can range from €100,000 to €3,000,000 depending on the size of the holiday home, the location, and whether it is a new property or an older property. The market is competitive, and estate agents can be a good resource to find the best deal.
The most popular locations for holiday homes in Ireland are located along the Atlantic coastal line. Areas such as County Kerry, Donegal, Achill and Connemara have been particularly popular in recent years.
Renting or Buying?
Many people choose to rent a holiday home in Ireland instead of buying. Upon renting, a person could enjoy the area for a month or two and decide later if they would like to commit to a purchase. Short-term rentals may also be more cost-effective as the associated costs, like insurance, may be lower than the costs associated with buying a holiday home.
Local Council Regulations
Certain regulations and restrictions may be placed on holiday homes depending on the location, and it is important to familiarize yourself with these before committing to any purchase. There are additional laws for those that are renting out a holiday home, such as insurance requirements, safety standards and planning restrictions. Depending on the county, the local council may require the owner to register purchase before being allowed to let the holiday home to visitors.
Local Economy
When buying a holiday home in Ireland, it is important to consider the local economy. In some areas, there may be high unemployment and a limited job market, making it difficult to find a job and making the properties more difficult to sell. It is much easier to invest and commit to a purchase if there is a strong job market and a good quality of life in the local area.
Accessible Activities
The activity level in the local area is another factor to take into account when looking for a holiday home. Many potential buyers favour areas near beaches, countryside walking routes or a local city centre. Depending on the county, there may also be options for other activities such as skiing, horse ridding and fishing.
Risk Management
When buying a holiday home it is essential to manage the risks associated with the investment. Be aware of how rental rates are affected in different seasons and consider engaging with a solicitor to help manage any legal risk associated with the purchase.
Life Cycle
The life cycle of a holiday home purchase is important to consider. If you plan to sell the property after a few years, it may be advisable to plan for renovations, maintenance costs and capital gains tax. Additionally, if the property is for a long-term investment, it is important to plan for the future of the home and consider renovating it to fit the changing market.
Environment
The environment of the area should be considered when buying a holiday home. In some areas, the environment may be heavily impacted by pollution or tourism. It is important to research the local area and consider how the environment will be impacted by the presence of a holiday home.
Expert Advice
Seeking expert advice and advice from those who have bought a holiday home in Ireland before can be incredibly helpful throughout the purchase process. Estate agents, solicitors, builders and insurers can all provide valuable insight and perspective. It is important to do your due diligence and ask the right questions before committing to a purchase.
