Second (and third) home thoughts from abroad

Once exclusively the preserve of the jet set, buying a home abroad is a dream being realised by an increasing number of Irish…

Once exclusively the preserve of the jet set, buying a home abroad is a dream being realised by an increasing number of Irish people. Far from slowing down, those involved in the industry predict this trend will continue through 2000 and beyond.

The main indicator of growing confidence among Irish overseas property buyers is the huge numbers flocking to property shows around the country.

This interest has stunned industry experts like those at British magazine Homes Overseas, who organised several of this year's events.

"It is unbelievable," said Ian Cunningham, sales director of the magazine. "The market in Ireland is much stronger in the UK and people are very literate in the do's and don'ts of property buying. They turn up at our shows with deposit cheques ready to buy which just illustrates the confidence they have."

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Cunningham cites the rising house prices across Ireland, the strength of the economy and the domestic investor-unfriendly Bacon reports as reasons for the overseas property explosion.

Until now, Irish buyers have mostly been interested in mainland Spain (attracted by the climate and the increasing number of direct flights to the country) but areas such as Tenerife, Italy, Greece and Malta are also experiencing growth. "Irish investors are very canny and some are buying perhaps a dozen apartments in one development which obviously will yield great returns," says Cunningham.

Jill Kennedy, an Irish agent specialising in Marbella, says this year has seen an unprecedented demand for properties in southern Spain. "This shows no sign of abating in the foreseeable future," she says. Kennedy believes the chilly months of January and February will turn the public's attention to warmer climes and despite price increases in the Marbella area of between 15 and 25 per cent over the past year she says there is still "plenty of choice" for potential purchasers.

The Costa Blanca is another Spanish region that has been experiencing an Irish property invasion although prices are on the rise there too. Diarmuid Condon of IPC Property Consultants says that a two-bedroom, two-bathroom apartment near a golf course, which was selling for £45,000 early last year, would now cost £65,000. "But good quality apartments can still be found here for around £50,000," he says.

France is a growth area that has room for further exploitation says Grainne O'Flynn from Wicklow-based HOF Properties. The country attracts those who are not interested in the tourist Meccas such as the Costa del Sol, but want a "real place that hasn't been manufactured".

"How many Irish people ever thought they could afford a home in the South of France?" she asks. "Now they can, with prices on the Cote d'Azur ranging from £45,000 for a small one-bedroom apartment to £200,000 for a five-bedroom luxury villa and swimming pool.

"Apart from solid business and investment reasons, clients say they want a good climate and a different way of life. As long as people have the money or the ability to borrow the funds they will continue to invest abroad," she said.

Another trend has seen Irish overseas property buyers become more adventurous in terms of location. Broadcaster Mike Murphy, a director of Irish company Dream Homes International, was amazed by the response to a small trade show the company recently held advertising properties in South Africa.

"We have a plane going down to inspect properties in Cape Town and Durban in February and the 20 seats were filled from just that one show," he says.

An example of the type of value to be found in the country, he says, is "a beautiful beach house that is basically a mansion beside a golf course". At home it would have a price tag of two and a half million pounds. "In South Africa the price is £75,000," he says.

Spain and Florida continue to be lucrative for the company and they sold £450,000 worth of property in the two countries in a 10-day period recently.

According to Jason Higgs, Managing Director of HD International, the market in Ireland is "very strong" and he sees no reason why this buoyancy should not continue for the next two years. Already this year, the company has sold 100 high-end properties in Florida, Portugal and Spain.

Higgs warns that one feature of the overseas property scene will see buyers safeguarding themselves against unscrupulous agents attempting to cash in on this expanding market. "There will be more and more people selling property with a so-called `guaranteed rental income'. We advise people that if agents tell them something, to look for the proof or else they could get their fingers burnt," he said.

Higgs also believes that the current capital appreciation of property, around 20-25 per cent, which many Irish investors have been taking advantage of is slowing down considerably.

"The coming year will see less interest from the investor while families and couples will still be interested in purchasing holiday homes abroad," he said.