A 90k Island Home

In 1998 I signed up for a weeklong tour of Ireland. I planned to move there and buy either a bar or a country estate where I could host executive retreats. The trip would allow me to scout out the real estate options on offer around the country.

The tour was run by Kathleen Peddicord who was also exploring business opportunities in the Emerald Isle. Less than six months later we were married and making our first international move together. A few months after that, we made our first international property purchase.

At the time, the Celtic Tiger was roaring. Ireland was enjoying annual growth of almost 10%, foreign investment was pouring in, and construction was booming. House prices were up more than 22% nationally and demand was high. Many believed that Ireland’s property market was at its peak but we needed a place to live so we started our property search.

In the wilds of County Waterford, we found Lahardan House. The big, old, Georgian-style property with space for chickens and horses was, for Kathleen, a dream home.

I’ll be honest, I was more passionate about diversifying outside the U.S. dollar and into the punt (this was Ireland pre-euro) and buying into one of the fastest-appreciating real estate markets on the planet than I was about Georgian architecture but happy wife, happy life…

Plus, impressive though it was, Lahardan was in a sorry state of repair meaning the price was under-market. Kathleen got a renovation project; I got a great deal.

During the time we owned the house, Ireland continued to prosper and property prices across the country continued up at rates that defied understanding.

For years, I woke up every morning expecting that to be the day the Irish property market began what I was sure would be a dramatic unraveling. How could prices continue up, I’d wonder. What was driving and sustaining the growth? Nothing that I could identify.

At the height of the boom, Irish banks were lending with abandon. You could borrow as much 110% of the purchase price of the property you wanted to buy, the extra 10% to cover stamp duty (which was as much as 9%) and other closing costs. You could buy with zero euros of your own and therefore no skin in the game—and many did.

We thought the market was topping when we arrived on the scene. By the time we were set to depart, this time to Paris, I was sure it couldn’t go much higher. It was time to take our profits and run.

We turned our $250,000 Lahardan investment into more than $1 million and reinvested those profits in the French capital. A year later, Ireland’s collapse had begun and it raged on until 2013.

Today, the Irish property market is once again on a tear with prices nationally having increased by 160.7% over the past 12 years.

Back in the late 90s, you could easily buy a home in Ireland for under 100k (punts or euros depending on the year). This year, according to a recent report, the average residential property sold had a price tag of €426,000 ($497k) but that doesn’t mean there isn’t still opportunity here.

If you’re in the market for a renovation project, the Irish government offers grants of up to €70,000 for derelict homes in need of full renovation. There’s even an additional top-up of 20% if you build on one of Ireland’s offshore islands bringing the grant total to €84,000.

This property on Achill Island, off Ireland’s west coast, would fit the bill…

Sitting on two-and-a-half acres, this traditional cottage is for sale for €90,000 ($104k).

Back on the mainland, in County Clare, this two-bedroom fixer-upper is on the market for just €35,000 ($40k)…

And of course, if you’ve got the budget and are more interested in fun than profit, booming Ireland is a great place to be…

In our old stomping ground, Waterford, this converted church is on the market for €775,000…

If you’d prefer to make your home in the capital, this four-bedroom home in Kinsealy, County Dublin, is also for sale…

The main house has five bedrooms, the guest house provides an additional two, and in the 17 acres of grounds you’ll be kept occupied with landscaped gardens, a tennis court, floodlit paddle court, heated outdoor swimming pool and jacuzzi, as well as a BBQ and bar area. It’s on the market for €9,250,000 ($10.7 million).

Stay diversified,

Lief Simon
Editor, Offshore Living Letter