US citizens seeking to move to Ireland face a challenge
Many May A Of Of Research Lot A But Requires Ireland In Home Be Buying A Dream
According to a report by CNBC in the US, Google trends showed that searches relating to ‘leave the country’ and ‘how to move to...’ spiked following the news that Donald Trump was set to become the 47th US president on January 20.
Of course, indicating an interest and following through on what is a life-changing decision are two very different things, but it's clear that at least some of the 68m voters who did not support Trump are now set to vote with their feet and head for foreign shores.
Will some come to Ireland? It seems likely.
Since November 8, online search results for Irish property as reported by Myhome.ie indicate that there has been a significantly increased volume of new enquiries which have risen by 120%.
Online search results to other locations such as Canada, Britain, and Japan have also risen.
According to that CNBC report, after those three came Australia, Italy, and Ireland, ahead of New Zealand and Switzerland.
Some may even have anticipated the result as we have seen a significant upswing in interest from American buyers over the last six months or so.
Americans buying property in Ireland is nothing new. They have been an active participant in the Irish market for decades.
Given our close ties and the large Irish diaspora across the US, it is no surprise that many Americans and particularly those of Irish descent will at some point think about either moving here permanently or for extended periods.
Ireland has a compelling appeal for purchasers from the US.
It is easily accessible with a number of direct flights and a time difference of just five hours from the east coast.
We are English-speaking, politically stable, safe, with beautiful scenery, and a mild climate.
We also offer a highly developed education system, have a rich history and culture, but I think, above all else, are welcoming.
The Irish are known the world over for their ‘Céad Míle Fáilte’ and that, from our experience, is perhaps the biggest draw of all.
Seeking to make such a life-changing move can be daunting and buyers need to appreciate that we are in the midst of a housing crisis with a chronic shortage of supply.
The Irish property market is very competitive and the house-buying process is distinctly different from that in the US.
There are a host of legal, financial, tax, and practical considerations which must all be fully considered before buying a property in Ireland.
For those who hold dual US/Irish citizenship, they are entirely free to move to Ireland and purchase a property here.
However, for those that do not have Irish citizenship and cannot claim it, they need to apply for a visa.
If planning on retiring to Ireland, the applicants need to demonstrate sufficient income of at least €100,000 per annum for a couple and 50,000 for a single person.
For those that may be seeking to work, they will need to apply for a long-stay work visa.
The process can take some time and those considering this should begin this process as early as possible.
Visa requirements etc can be reviewed at www.ireland.ie.
To purchase a property, applicants will need to apply for a Personal Public Service number and register with the tax authorities.
A solicitor or lawyer is needed to assist with this process and the entire purchase.
They will talk through the legal implications, the contract, and conveyance process etc.
Ireland is a relatively small country but is still diverse in terms of scenery, weather, accents, amenities, and local culture.
In my experience, many purchasers from the US are drawn to the Atlantic Coast.
For those of Irish descent, there may be a strong emotional attachment to a certain city, town or village and one might naturally seek to purchase there.
For others that don’t and are perhaps not that familiar with Ireland, it would be strongly advisable to come over and spend some time here.
People can stay for 90 days without a visa.
The type of property will be determined by budget, family size, etc, and can range from period homes on large land holdings, to traditional coastal cottages or small town centre apartments.
Each have their pros and cons and will offer very different living experiences.
Practical considerations will include things like security, property maintenance, and running costs.
Those wishing to purchase may be surprised at the lack of choice, particularly for high-quality energy efficient homes.
All properties are generally advertised for sale online.
There has been a shortage of homes coming to the market for several years and supply remains very tight.
Therefore, buyers have to compete to secure their dream home with the result that prices have increased year-on-year for the last 10 years.
All house values are location-specific and can vary widely, but the best value locations tend to be in the midlands, less so in coastal locations.
A search of the property portals will give asking prices and selling prices can be found on www.propertypriceregister.ie.
In my experience, almost all buyers from the US are purchasing with cash and do not require a mortgage.
However, subject to them being legally resident in Ireland for a least a year and subject to the certain conditions, they can apply for and potentially get bank finance.
The vast majority of house sales are sold by what is called a private treaty.
A seller lists their property with a guide or asking price and offers are invited.
Frequently in really competitive locations, the asking prices can be exceeded by 10% to 15%.
Unlike, in the US, buyers are generally not professionally represented.
The sales agent acts for the seller, and it is their job to secure the best price.
There are agents that will act exclusively for sellers and may be worth considering.
For a fee of about 1%, the agent will manage the entire property search and buying process.
They may be able to introduce prospective buyers to off-market sales, and will liaise directly with or refer the buyer to other professionals such as solicitors, tax advisors, surveyors, architects, or engineers.
A list of chartered residential agents can be found at www.scsi.ie/find.
Once an offer has been accepted, a deposit of up to 5%, which is fully refundable, must be paid.
The buyer may then proceed to have a survey undertaken of the property to ensure that it is structurally sound and to check the boundaries.
The respective solicitors will then deal with the contracts, and it will typically take about six weeks before it can be signed.
At that stage, 10% of the purchase price is paid.
Once the contracts are signed, this is legally binding, and the sale closes about four to six weeks later at which stage you pay over the balance of the purchase price being 90%.
The average sales process takes 12 to 15 weeks and longer if issues arise.
In terms of costs, on completion of the sale, a one-off tax called stamp duty must be paid.
This is based on 1% of the value of the property up to a value of €1m and 2% above that.
However, if the property has more than one acre, the land value is taxable at 7.5%.
Annual property taxes are far lower in Ireland than in the US and are self-accessed.
The tax is based on the declared value of the property and paid each January and will typically range from about €300 to €1,000.
Professional fees to a solicitor are by agreement and should be provided in writing beforehand.
Buying a property in Ireland at this time is very challenging.
However, for those who dream of embracing Irish culture and living here, that should not be a deterrent.
With careful research and planning, a dream home from home can be found.