09 Feb Irish Property Development or Buy To Let in Ireland?

When deciding whether to invest in property in Ireland, whether you are a local or foreign investor, you will want to decide where you want to place your investment. Should it be in Irish property development or should it be in Irish buy-to-let opportunities?

Both are currently excellent opportunities so making the decision will depend on your approach to investment and what you want to get out of it. It will also depend on how long you want to be locked into the investment. Alternatively, perhaps you’d be interested in a blend of both approaches.

Irish Property Development

For most developers, the investment is a turnover project. Property developers will invest in a project to turn it over, make a profit, and then start with a new project investment. This makes property development projects a short-term, high-return investment for most.

Investing in Irish property development is no different. After the 2008 crash, property development became the pariah of Irish investments. Those that understand economic cycles, however, understood that with recovery the Irish property development market would return. And so it has.

Track Records Matter

Once bitten twice shy may be a common idiom used in daily language. Many use it when it comes to investment too. However, the Irish government demonstrated one of the most invigorating post-2008 recovery strategies.

When a government displays an economic strategy that brings life back to markets that few thought would recover then both short and long-term investments become a worthwhile risk.

You will hear words like bubble and cycle and all sorts of other terms that may strike the fear of God into you when researching Irish property development. Remember that this should happen regardless of where you may choose to speculate.

Irish property investments currently rest on the backbone of supportive policy from the Irish government. As recently as 2017, new tax breaks have been introduced that favour investors, including those that buy to let.

This is happening while the UK government is tightening the thumbscrews on landlords. It would be unsurprising if property investors and developers start to migrate across the channel, especially in the wake of Brexit.

Funding for Irish Property Development

As property developers grow their portfolios, they also tend to tackle bigger and better projects. There should always be a good capital return on completion of a project. These returns, however, slow profit growth when they are used exclusively to develop the next project.

Using the returns to fund the next project makes sense. The size of the next project can also be substantially increased when quality funding is sourced. Short-term funding such as mezzanine funding and bridging loans all make up part of the property development funding. This is the type of funding that turns projects over rapidly. Done correctly, this produces high yield returns.

Finding a Good Broker

You may think that you have scored a bonus when you find a funding source that can provide you with excellent bridging loans and, in some cases, mezzanine funding too.

However, an experienced consultant that can help cover all aspect of Irish property development finance will help to carry you through the ups and downs of the development project and what happens when cash flow gets tight.

Advisors and brokers such as Belgravia Property Finance can also help you to source invoice trading. There are also other quick business finance that the high street cannot offer. For a broad spectrum consultancy on all your needs throughout your development project, contact the specialists at Belgravia Property Finance for that extra personal and confidential consultation.