Canny Irish investors take a punt on India
Buying abroad:You've got to hand it to the Irish. No sooner has the word spread about a potential slowdown here at home than scores of buyers are out trawling for the latest property hotspot abroad.
Said by pundits to be on the verge of a Celtic Tiger-style boom, India is one choice for those looking for a place for their spare punts. Since April 14th, Irish company Larionova has accepted deposits from 280 Irish investors on three off-plans residential schemes - two in Mumbai and one in the holiday resort of Goa.
A five-year guaranteed income of 7 per cent and prices as low as €24,500 for a studio apartment are the main incentives. Add India's booming economy and Merrill Lynch's forecast of a 25 per cent annual increase in values and the deal seems less of a gamble.
A number of top business people have already invested here, always a good indicator of the way to go.
Still, India is a long way to go to buy property and arranging an inspection trip could be troublesome, so why the rush to invest there?
"Everything led me to India," says David Liddy, who is buying two apartments from Larionova. "I sold a house in Ireland, got independent advice from Ernst & Young and PricewaterhouseCoopers and India kept coming up.
"It's the next Celtic Tiger and there's been a massive shift in the economy there. With the guaranteed rental yield and very attractive prices, you can't go wrong.
"There's nothing to buy for €25,000 in Ireland and not the same level of growth," says accountant Daire Turner, who has put a deposit on one of the Mumbai apartments. "I was at a wealth management conference last month where India and China were mentioned as places with growth potential. I know I'm taking a punt, but €25,000 would buy you a car in Ireland and that will depreciate. My €25,000 apartment could be worth €180,000 in 2015 - that's good growth in any language."