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How to Invest in Property: What You Need to Know
🇮🇪 Ireland /Economy & Trade

How to Invest in Property: What You Need to Know

From Irish Times · (2d ago) English

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Property remains an attractive investment option in Ireland, offering diversification despite changes since the Celtic Tiger era.
  • Investors can access property through various means, including property funds (ETFs, life-wrapped funds, REITs) or direct share ownership in property companies.
  • Property funds are generally considered medium risk, with returns potentially coming from rental income and capital gains, though market uncertainty can impact capital growth.

While the days of the Celtic Tiger may be long gone, property continues to hold its allure as a significant component of an Irish investor's portfolio. It offers a valuable avenue for diversification, providing a counterbalance to other asset classes. The Irish Times guides readers through the evolving landscape of property investment, exploring the various strategies available to capitalize on its enduring appeal.

Property still has its attractions, and can play an important role in offering diversification.

— The Irish TimesThe publication frames property as a continued valuable investment tool in Ireland.

For those seeking broader exposure without the direct management of physical assets, investing in property funds presents a compelling option. These funds, accessible through the stock market via Exchange Traded Funds (ETFs), life-wrapped funds managed by major Irish insurers like Irish Life, Aviva, and Zurich Life, or Real Estate Investment Trusts (REITs), allow investors to pool resources. This collective approach enables the acquisition and management of a diverse range of properties, primarily within the commercial sector.

If you’d rather hedge your bets and get exposure to a number of properties, you can do it via the stock market by investing in one or more of a property-related exchange-traded fund (ETF), a life-wrapped property fund, an investment fund, a real estate investment trust (Reit) or property-related stocks.

— The Irish TimesThe article outlines various methods for indirect property investment.

These funds offer the potential for growth through both rental income and the appreciation of property values. While market uncertainties, particularly in the wake of Covid-19, have seen a greater emphasis on income generation over capital gains in recent times, the inherent stability of rental income generally positions property funds as a medium-risk investment. This contrasts with the higher volatility often associated with equity funds, making property a potentially smoother ride for investors. The inclusion of leverage within a fund can amplify returns but also introduces additional risk, a factor that investors should carefully consider.

Many of the life companies, including Irish Life, Aviva and Zurich Life, run their own property funds.

— The Irish TimesThe article highlights specific providers of property funds in Ireland.
DistantNews Editorial

Originally published by Irish Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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