As younger investors find themselves shut out of the property market and long-term rental is a reality, holiday homes around the State are being snapped up for record prices. Recent prices from around the State show that these weekend or summer homes in idyllic mountain or water-based settings tend to cost at least six figures.
A two-storey, three-bed riverside home in Sheen Woods, near Kenmare, Co Kerry will set buyers back at least £169,500 (€215,220).
In Wexford, Ardamine Grove in Courtown, has 23 holiday homes for sale at £125,000 each. Section 23-type tax relief is available. Two existing thatched cottages near Rosslare Strand, Co Wexford, are expected to fetch in excess of £100,000.
The Sandycove development in Ballymoney, Co Wexford, has 175 houses selling for between £115,000 to £143,000.
Further afield in north-western Rossnowlagh, Co Donegal, a 1.8-acre site with planning permission recently went for £116,000.
Local estate agents estimate that approximately 65 per cent of all out-of-town houses are owned by holiday home investors from outside the area. These homes cost £100,000 on average.
Dublin investors are taking advantage of seaside resort tax incentive schemes which allow a good tax saving. This has lead to huge blocks of apartments being built in "Beautiful Bundoran".
There is concern in all resort scheme areas that non-locals are pushing prices for homes and sites out of reach of local people. In some areas, holiday homes outnumber year-round homes.
In Donegal, this problem is being addressed by the Draft County Development Plan. The plan may incorporate stricter regulations on building in scenic areas and a £3,000 levy on all new holiday homes. This may prove controversial with locals hoping to sell sites.
Although second homes are expensive now it seems that prices will continue to rise until alternative, tangible investments come onstream or stricter regulations are put into place like those proposed in Donegal.
