Cash buyers from overseas targetting Galway auctions

An increasing number of cash buyers from overseas are targeting properties in Galway to purchase at auction.

Colm O’Donnellan of O’Donnellan & Joyce Auctioneers said there is “enormous interest” from cash buyers at the moment.

He said he believes the market has ‘bottomed out’ and said prices have even risen in some particularly sought-after areas which have a shortage of suitable family homes.

He told Tribune Property: “Currently there is enormous interest, particularly from cash clients at home and overseas who are looking to purchase properties in the Galway area and throughout the West of Ireland. 

“There is a general sense that the property market has reached the bottom and property is starting to move which our experience in the last six months of 2013. 

“So for the cash customers, there was the added incentive that if you require a property in 2014 and hold it for seven years there is no Capital Gains Tax. 

“This is a huge incentive for investors as there is no other asset that you can hold and sell it at a profit that is tax free. This incentive lined with little or no return on money in the bank is expected to create an avalanche of interest from investors in 2014 particularly from cash investors at home and overseas.

“In the last six months banks are at long last are starting to return to the market particularly for first-time buyers and home owners,” said Mr O’Donnellan. Last year, the agents recorded a 90% success rate at auction.

He said his decision to live stream auctions on the company website last year had proven a big success.

“For many people viewing, it gives them a great insight as to what is happening in the market and is watched with tremendous interest particularly by overseas buyers,” he said.

The next auction takes place on March 14.