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Posts Tagged ‘irish investor’
Ireland isn´t quite as deluded as Spain (at least the statistics are reliable), but properties are still overvalued. An “off market” bulk deal that landed in my inbox a couple of weeks ago serves as a prime example. It was 40+ tenanted apartments in a central Dublin location with an asking price of more than €20 million. The gross rental yield was 2.6% - which I can get in a bank. I wouldn´t have bought those apartments for €10 million, never mind €20 million.
The bad news is that opportunities for easily purchasing a property at the very bottom of the US market are gone. This isn’t necessarily making front page news in The Times but statisticians and reporters tend to print yesterdays news.
There are two fundamental market forces at play. There is the “real market” which comprises 90% of existing US residential property. This stock may have lost significant value in the last few years but it is neither distressed nor foreclosed and the vast majority of it is not for sale.
The other, temporary market is the “distressed market” which completely undermines all efforts of the real market to sell surplus stock. This is because the “distressed market” as you will guess, is comprised of foreclosed and distressed property from banks and developers.
This market is the only show in town as far as bargain hunters are concerned, and it is our knowledge of the main players in this market and the process by which we help clients purchase, tenant, maintain and resell these assets that makes Torcana.com stand out from the crowd.
Kind Regards
David Shaw
Sales & US Sourcing Manager
Torcana.com
About 45% of our clients and visitors to www.torcana.com are based in Ireland, so we pay very close attention to the political and economic situation on the ground. Unfortunately it looks increasingly likely that Ireland is going to be very volatile over the next 6-12 months. The Lisbon Treaty is coming up in early October, which is extremely important to ratify but a huge distraction in terms of rebalancing the economy and overall employment.
There is also a budget coming in October where details of roughly $5billion in cuts/savings in public expenditure will be announced which will face very heavy resistance from the unions and large sections of the general public.
But of course, our headlines will also be dominated by the NAMA legislation due to be debated shortly. It is probably the most controversial and most important legislation that our country has ever debated. I’m far from convinced myself that the government are taking the correct course of action with this.
No doubt many politicians and bankers wish they’d taken a different career path.
Alas, the Irish economy is far from recovery and property prices need to fall an awful lot more before they’ll get this investor interested. However, and belatedly, other countries are positively brimming with opportunities.
For more information, please see www.torcana.com.
Kind Regards
Colin Murphy
Director
Torcana Ltd
The image of the swashbuckling Irish investor has taken quite a hammering over the last 18 months. Both Irish and non Irish media publications frequently expressed their admiration at the way the Irish purchased enormous amounts of offplan investment property throughout Europe and the USA.
Unfortunately, many of these same investors are now frantically trying to cut their losses and have retreated back to Dublin, Cork and Galway with their proverbial tails between their legs.
Where are we seeing market activity?
I honestly do think that the types of properties Torcana are promoting (i.e. sourcing high quality finished properties available at large discounts from highly distressed vendors) is the only market niche that has seen an increase rather than a dramatic decrease in activity lately.
The sector was previously dominated by the offplan market for vacation properties, for investment properties, and for a combination of both. In the next post I’ve described why demand for these types of properties has fallen off a cliff.
Markets which did well for completed / 2nd hand properties, such as Germany and France are both also suffering quite a lot now.
Anybody out there agree?
Kind Regards
Colin Murphy
Director
Torcana Ltd
