Ask the Experts: In your experience, are cash buyers still playing a major role in the market?
Published 23/01/2016 | 02:30
Yes - 45pc approximately of sales are to cash buyers.
Reasons include the restricted market for borrowers together with a high proportion of downsizers and older first time buyer cohort.
It should be noted with a country of generally a high level of home ownership, this can produce a significant wealth base on death, where an inheritance very often provides the where with all for a move into the property market.
Michael is the managing director of the Sherry FitzGerald estate agency group which has a 66 branch network including franchises, He has more than 26 years experience in the sector.
There are still many cash buyers in the market - approx 35pc-40pc. However, over the last two years there has been an increase in the number of mortgage approved buyers.
The power of the cash buyer may increase further this year due to the central bank lending restrictions.
Marian McQuillan is the CEO of Quillsen, formerly Gunne Estate Agents and was previously a director of Purcell McQuillan Tax Partners.
Non mortgaged buyers are still accounting for 40-45pc of the market.
I see this trend continuing, because there is plenty money in Ireland and good property value still about, particularly outside of Dublin.
Pat Davitt is the CEO of the Institute of Professional Auctioneers and Valuers (IPAV). Pat has more than 33 years experience in the sector, spending much of it running a family based auctioneering firm in Mullingar.
According to DNG Research only 49pc of all transactions in the state where funded by Irish mortgages.
This means 51pc were funded by cash or foreign funding sources.
It is likely that foreign funding for block and loan book sales accounts for around 10-15pc of all transactions which means that approximately 35pc-40pc of all regular residential sales were funded by cash in 2015 and we anticipate that this level is likely to be 29-34pc in the year ahead.
Keith Lowe is CEO of Douglas Newman Good, which has 75 offices throughout the country. He has 32 years experience in the property sector having joined the firm in 1984.
Recent surveys of chartered surveyors carried out by SCSI and Central Bank of Ireland estimate that cash buyers account for approximately 40pc of the market.
Cash buyers are looked upon more favourably by vendors as they do not have to apply for finance and are also not restricted to lending rules that affect those buying property using mortgage.
Patricia Byron is the director general of the Society of Chartered Surveyors Ireland which has 5,000 members working in the property and construction sector.