From the mid-nineties onwards, Ireland experienced a housing boom like nowhere else in Europe with property prices rising rapidly. Then in 2007, along with the rest of the world, the Irish economy crashed and its dependence on the market resulted in a multimillion pound bailout programme.
Six years on and the signs coming out of Ireland are beginning to look positive. With the country due to exit its bailout in December, property prices should stabilise before picking up again in 2015. The general feeling in Ireland is that prices cannot get any lower, so if you are looking for a long term investment now might be a good time to buy with some real bargains to be had outside the capital.
For many people who are looking to buy an overseas property Ireland might not be top of their list, but it provides good value for money compared to other countries such as Spain or France. This combined with its close proximity the UK and beautiful scenery, means that Ireland can be a more affordable alternative for people who are in search of a rural lifestyle.
Dublin continues to be popular with overseas investors and is leading the way in terms of recovery and growth. Property prices have risen by 10-12% over the last 12 months, which has resulted in a shortage of suitable properties. Prices outside of the Dublin area are continuing to fall, but it is hoped that Cork and Galway will follow in the capitals footsteps and start to show some signs of growth.
With Ireland being part of the EU there are no restrictions on UK residents who want to buy, or live there. However, if your nationality falls outside of the EU there might be some restrictions.
There are currently lending sources who are offering mortgages for people who are requiring to reside permanently in Ireland , with a maximum loan-to-value of approx 80% (possibly higher on a case-by case basis). Interest rates range from 3.85% variable available in Euros only.
For non-residents requiring a buy to let or holiday home mortgage, there are lending sources who will consider up to a maximum loan to value is of 50% (possibly 60% on a case by case basis). Interest Rates range from 5.70% variable in Euros only.
With all mortgage enquiries the minimum purchase price is €150,000 and the minimum loan is currently €70,000.
This article was first published on Prime Location here: http://blog.primelocation.com/2013/11/27/buying-overseas-in-ireland-as-property-prices-begin-to-stabilise/