Irish investors in property are looking to the market overseas for a better return.
As the economic boom in Ireland continues, many Irish property investors are increasingly looking abroad for higher returns and the added benefit of a holiday home in the sun.
Developers are now actively marketing to Irish buyers, promoting holiday properties in distant locations such as the Cape Verde Islands, Dubai, and New Zealand.
Gary Connelly of the Irish Association of Investment Managers warns people looking to purchase property abroad that,
Many ads offer exorbitant rates of return but little protection for the consumer.
If an offer appears too good to be true, it usually is, noting that many of these overseas investments fall outside regulatory oversight.
New regulations for the Irish property market are expected to enhance consumer protection by providing clearer rights of redress and better protection for funds. Some international property agencies believe similar standards would benefit their sector.
Gabrielle O’Malley of Splash International Properties notes that many Irish buyers are effectively buying blind, placing substantial trust in agents when purchasing property abroad.
With €15 billion in SSIA funds soon to be released into the Irish market, many recipients are expected to invest in overseas property. Industry experts are urging these potential investors to seek independent legal advice before committing to any purchase.
An RTÉ News report broadcast on 21 March 2006. The reporter is Niamh Nolan.
