Wednesday 26 July 2017

For educated guesses ask the experts

It's the beginning of a brand new year so we asked our top experts in the property field to provide us with a set of predictions based on what the year ahead holds for us all - buyers, sellers and first timers

Aodha O'Brien

Head of Residential Research

CB Richard Ellis Q: Do you think residential property prices will go up, down or stay flat in 2007? A: Activity in the housing market will remain strong in 2007, albeit less frantic than in recent years. On the back of strong economic and demographic fundamentals, we expect that prices will continue to rise.

On average, second-hand residential homes should experience capital appreciation somewhere in the region of 3-5% next year. Q: If you had ?80,000 what would you choose as an Irish investment? A: I would certainly gear up to purchase a residential property and I would focus attention on locations along the proposed Metro North line on the basis that locations along the routes of new and proposed transport networks are undoubtedly likely to achieve higher than average house price inflation over the longer term. Q: What would be your best tip for the overseas property market? A: Be informed. Tried and tested markets such as Portugal, France and Italy offer sound investment opportunities. There are also some good opportunities in non-traditional markets in places like Central and Eastern Europe. Paul Murgatroyd

Economist

Douglas Newman Good Residential Group Q: Do you think residential property prices will go up down or stay flat in 2007? A: A difficult question to generalise on. I still believe that there is scope for single digit price increases in 2007, particularly in the second hand market and in the main urban centres across the country.

Q: If you had ?80,000 going spare, what would you chose as an Irish investment? A: It might be worth taking a punt on an investment property along the proposed Metro north line, somewhere between the city centre and the airport. Choose a location with strong rental potential near a hospital or third level educational institution where rental demand is likely to be strongest in the medium term. Q: What would be your best tip for the overseas property market? A: I like the safe European countries such as France and Germany which in my view are good areas for speculation. John Beggs

Chief Economist

AIB Global Treasury Q: Do you think residential property prices will rise or fall in 2007? A: The rate of house price inflation is expected to moderate over the course of 2007, as affordability pressures continue to weigh on the market. In addition, in the new homes sector, the high levels of supply should help alleviate the supply/demand imbalance. The clarity over the stamp duty issues provided by Budget 2007 should see some recovery of demand for existing homes.

Q: If you had ?80,000 what would you chose as an Irish investment? A: A good long term investment may well be a well balanced portfolio of equities, given that growth prospects in the Irish and global economy remain good. In terms of an investment in the residential property market, location remains the key.

Q: What would be your best tip for the overseas property market? A: The advice to "do your homework" and "buyer beware" is very apt in overseas markets. Marian Finnegan

Chief Economist, Sherry FitzGerald Group Q: Do you think the residential property market will go up, down or stay flat in 2007? A: We can anticipate a lower rate of house price inflation in 2007 than in 2006. The national second-hand market is likely to be in low single digit figures with a slightly higher figure achievable in the main cities such as Dublin. Q: If you had ?80,000 what would you pick as an Irish Investment? A: I suggest that there will be an increased demand for larger, well-located properties, to accommodate the trading up potential of the hungry first time buyers of the past decade. Q: What would your best tip for the overseas property market? A: When asked this question 12 months ago I tipped the Central London residential market and the performance of that market in the interim has been phenomenal. I hold this view again for 2007 as we are only seeing the start of a strong period of market expansion there. Austin Hughes

Chief Economist

IIB Bank Q: Do you think residential property prices will go up in 2007? A: While we may see some soft spots in coming months, I think house prices will rise by about 6-7% in 2007. The healthy economy, favourable age profile, supportive budget, maturing SSIAs and strong employment growth should underpin prices. Q: If you had ?80,000 what would you choose as an Irish investment? A: If your only investment is property, now might be a good time to diversify. Talk to a respectable advisor and decide on your own investment horizon and appetite for risk. Q: What would be your best tip for the overseas property market? A: I would prefer the modest but reasonably certain returns of a major European centre. A more cautious approach might be a carefully chosen property fund. Alan Cooke

Chief Executive

Irish Auctioneers and Valuers Institute Q: Do you think residential property prices will rise or fall in 2007? A: While I believe that it will generally be a year of modest growth in the residential sector, due in no small measure to interest rate increases, I do not believe that there will be uniform growth. Q: If you had ?80,000 what would you chose as an Irish investment? A: While property almost invariably represents a good long-term investment, with a shorter investment term in mind I'd opt for a fund linked to Irish equities, which have generally performed well and are likely to continue to do so. Q: What would be your best tip for the overseas property market? A: For the average residential investor I would advise against buying abroad unless you have experience of Irish investment, know the market you are buying in and have access to dependable advice and professional services.

Stick to established markets such as Western Europe or the United States where the market is well developed and resale is much more assured.

Geoff Tucker

Chief Economist

Hooke & MacDonald Q: Do you think residential property prices will go up in 2007? A: The increased cost of borrowing leaves little room for any significant price rises in 2007. Prices are forecast to rise by 5% nationally.

Great news for buyers! 4.5

Q: If you had ?80,000 what would you chose as an Irish investment? A: Residential property is still your best bet. The rental market is thriving and there is huge demand for good quality, well-located accommodation. Sandyford, Kilmainham and Dublin's Docklands are my top picks. Q: What would be your best tip for the overseas property market? A: My advice hasn't changed from last year - do your homework!

Think twice before you hand over any money and only deal with reputable companies.

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