Long Term Capital and Irish Investors

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Long term capital is an integral part of Irish investment. Recent trends have had an impact on the uses of long-term capital and its role on investment. It is good to look into long term capital to see its ins and outs, and to see how investors are utilizing it for their own personal needs.

Long-term capital usually has much lower investment return requirements over decades, which in turn gives it lower yields. This means that original investors have taken on more development risk in order to secure investments with high returns. The Irish market has seen a massive increase of investment for single family assets, and this is looking to be important in the future when you compare it to other mature economies. A significant fact in this stage is that twenty-five of the most active investors in Dublin are looking at the Irish residential market. These investors in Dublin are looking into bidding on properties and seeing the options they have for different investment opportunities. Fifteen out of these twenty-five investors have PRS developments completed and ready in the Dublin market.

Throughout 2020 there was a large amount of uncertainty in the occupier market due to the Covid-19 pandemic. However, there has been a favorable number of rents secured, collection rates have increased, and portfolios have performed well. The positive adjustments in the market have ensured sales that were transacted or agreed to in the second half of 2020 are going ahead as planned. It would be much more difficult to be comfortable with investments if investors did not have positive firsthand experiences in the Dublin lettings market, and with underwriting investments.

Another thing to keep in mind when looking into multifamily investment in Ireland is the story of forward sales transactions in the suburban parts of Dublin. Feedback had been received showing a number of parties had assessed the developments regarded as core investment products. These were based on the high quality of the buildings and the overall development and performance of these locations over four years. This includes the let up of 700 Irish apartments associated with successful management strategies.

Long term capital is important for Irish investors, and many are looking to use it to the best of their ability. The continuing nature of uncertainty in the Irish market is going to lead investors into doing their due diligence. It is very important to keep up with recent trends, so you have the best possible tools equipped to solve your financial needs.

Written by John Spurrier, Mortgage Analyst for Online Application