The Irish love affair with property is as strong as ever, particularly when it comes to investment, the IBF Personal Asset Profile survey has found.
While there is a reasonable diversification across asset classes, property tends to dominate, according to IBF chief executive Pat Farrell. Greater diversification was desirable, he said.
A total of 43 per cent see their homes as an investment, indicating that property remains one of the biggest areas for investment for Irish consumers, according to Amárach Consulting managing director, Michael McLoughlin.
A total of 15 per cent of consumers cited property, excluding a home or second home, as their first preference if they were to make an investment over the next three years, while 14 per cent said land and a further 14 per cent said a second home would be their first preferences for investment.
If given an after- tax windfall of €100,000 for investment purposes, 18 per cent said they would invest in a second home, 18 per cent said their first home, 13 per cent said property excluding first or second home, while 10 per cent cited land.
The research found that 20 per cent of Irish consumers own a second property, either in Ireland or abroad. Nearly half of those have a residential property which is rented out to a third party.
Just over one in 10 consumers regard their investment in property in Ireland as a potential source of income for retirement, while 5 per cent have investments in property abroad to fund their retirement. A total of 8 per cent said equity release from downsizing to a smaller house was a potential source of income for retirement.
