The Lemon Fool

Hi all

I harbour a strong belief that Dublin property is going to appreciate strongly in the forthcoming years. Many banks and financial service companies are going to migrate jobs as a result of Brexit - JPMorgan announced 1000 jobs moving only last week. The supply of property is highly constrained, and mortgage requirements are very stringent, resulting in strong rental demand.

My question is - for a given amount of money to invest, does the hassle of buying a property (not necessarily leveraged) outweigh the indirect nature of investing in vehicles like the Hibernia or Green REITs?

All thoughts welcome and appreciated.


Mark

MARK - as I'm sure you must realise, that is so dependant upon individual wealth and circumstance. Nobody can advise/answer.

All I would say is that UAI also has Dublin exposure, though it may have banked some of its profits recently.

Mark wrote:Hi all

I harbour a strong belief that Dublin property is going to appreciate strongly in the forthcoming years. Many banks and financial service companies are going to migrate jobs as a result of Brexit - JPMorgan announced 1000 jobs moving only last week. The supply of property is highly constrained, and mortgage requirements are very stringent, resulting in strong rental demand.

My question is - for a given amount of money to invest, does the hassle of buying a property (not necessarily leveraged) outweigh the indirect nature of investing in vehicles like the Hibernia or Green REITs?

All thoughts welcome and appreciated.


Mark

Look at a bit of recent Irish history. There are people who will walk away with a lot of money, and there are people who will end nursing severe losses.

Do you feel lucky?

I wouldn't touch Irish property with a bargepole.

I appreciate the post is a few months old, but I think this may be a decent investment idea. The Irish residential property market is up roughly 11% over the last year and various people are now talking about housing shortages in the Dublin area.

Cairn Homes, an Irish homebuilder would be a direct way of getting exposure to the residential side of things - their sites are 90% in Dublin / Greater Dublin Area. Digging around, it does seem to trade at a fairly hefty premium to book value and there's a strange performance fee type arrangement with "founders shares" that you'd need to get comfortable with first. It certainly would have been a good investment last year, however!

And here comes a huge IPO for another Irish homebuilder:
https://www.irishtimes.com/business/fin ... -1.3219607

I must admit, if Private Equity wants to sell out, it does make me a bit wary of buying.

strophe wrote:And here comes a huge IPO for another Irish homebuilder:
https://www.irishtimes.com/business/fin ... -1.3219607

I must admit, if Private Equity wants to sell out, it does make me a bit wary of buying.

Yup, there are a lot of REIT IPOs at the moment., almost like they know something we don't.... and want to offload them for our cash.

gbjbaanb wrote: Yup, there are a lot of REIT IPOs at the moment

Can you elaborate? Maybe a little list, or an article pointing to them?

Isn't REIT a UK concept, that becomes meaningless if you take out the implications of UK taxation? So is a Dublin REIT a UK company investing in Dublin property? Can/do REITs hold property worldwide?

UncleEbenezer wrote:

gbjbaanb wrote: Yup, there are a lot of REIT IPOs at the moment

Can you elaborate? Maybe a little list, or an article pointing to them?

Isn't REIT a UK concept, that becomes meaningless if you take out the implications of UK taxation? So is a Dublin REIT a UK company investing in Dublin property? Can/do REITs hold property worldwide?

well, there is this one, and there was AEW Longlease REIT, and AEW UK REIT, and Warehouse REIT, and soon there will be MG Multi-let REIT. I pretty certain there was another one early this year, but my memory fails.