Irish Republic wins on expat buy to let yields

If you’re looking to fund your expat retirement by investing in a buy-to-let property, Ireland is your best bet for returns.

During one of those ‘not a lot of people know that’ moments, Ireland scooped a property double as the top buy-to-let hotspot in the whole of Europe, with its capital, Dublin, ranking as number one for yields at an average of 7.69 per cent. It’s the third year running for the Republic’s place at the top of the 29 countries surveyed, and Brits looking to finance their later years couldn’t do better.

One reason for Ireland’s success is that property prices, although rising, are still way below Ireland’s previous 2008 peak. Rental demand in the Republic is strong and unlikely to weaken due to today’s high population growth, with renting the preferred option for many citizens. The UK’s domestic buy-to-let property market is in decline, with expats preferring the opportunities opening up across Europe. Expat access to the Irish market is still straightforward, although it’s uncertain how long this will last. The UK is now far down the list of yields per country at 16th, below the majority of EU member states as well as Turkey and Estonia and just above Lithuania. Its yields now average 4.67 per cent, a far cry from Ireland’s top score.

It’s possible but can be tricky to get a buy-to-let mortgage in the Republic of Ireland, as banks and other lenders tend to be cautious about expatriate loans. If you’re legally resident and working in Ireland, you’re allowed to buy, with a few Irish banks also lending to expat investors but setting their own, occasionally stringent, terms as well as higher interest rates. One point to consider is the currency in which you’re paid your salary, with currencies other than the euro likely to prevent you getting a loan. Another hassle is the endless checks and verifications you’ll have to go through, but it’s worth it to get great yields for your investment.