Returning to Ireland after years abroad can be an exciting but challenging experience, particularly when it comes to purchasing property. Whether you’re buying a home to settle down or investing in property for the future, navigating the Irish housing market requires careful planning. Many returning expats fall into common pitfalls that can lead to financial losses, delays, or regret.
To help you make a well-informed decision, we’ve compiled the top five mistakes to avoid when buying property in Ireland as a returning expat, along with expert advice on how to navigate the process smoothly.
1.Not Understanding the Irish Property Market
Expecting the Market to Be the Same as When You Left
One of the biggest mistakes returning expats make is assuming that the Irish property market has remained the same since they left. Ireland’s housing market has seen significant fluctuations over the past two decades, with rising property prices in major cities like Dublin, Cork, and Galway.
Before purchasing, research current trends in the housing market. Prices, demand, and government policies such as first-time buyer grants, mortgage lending rules, and tax regulations may have changed dramatically since you last lived in Ireland.
Ignoring Regional Price Differences
Property prices vary considerably depending on location. Dublin remains the most expensive, but regional towns and rural areas offer more affordable options. However, lower property prices in rural locations come with trade-offs such as fewer amenities and limited public transport.
Tip: Compare prices across different regions using property listing websites like MyHome.ie and Daft.ie.
2. Underestimating the Total Cost of Buying a Home
Overlooking Additional Costs
Many returning expats focus only on the property price but forget about the numerous hidden costs associated with buying property in Ireland. These include:
- Solicitor’s Fees: Varies depending on the nature of the transaction.
- Surveyor’s Fees: Around €300-€800 for a pre-purchase survey.
- Valuation Fees: Required by mortgage lenders, typically €150-€250.
- Insurance: Mortgage protection and home insurance.
- Refurbishment & Repairs: If buying an older home, renovation costs can be substantial.
- Stamp Duty
- 1% of the purchase price up to a value of 1 million
- 2% on the remaining purchase price up to a value of 1.5 million
- 6% on any remaining value over 1.5 million
- If your purchase is the purchase of a new build, the stamp duty will be as per the rates noted at (1) to (3) above but exclusive of VAT.
Not Budgeting for Property Taxes and Utilities
Expats sometimes forget that in addition to purchasing costs, there are ongoing expenses such as:
- Local Property Tax (LPT): Based on property value.
- Bin collection & utility bills: These vary depending on location and provider.
- Management fees: For apartments and some housing estates.
Tip: Get a full breakdown of costs before making an offer to avoid financial strain later.
3. Failing to Secure Mortgage Pre-Approval
Assuming Getting a Mortgage is Easy
One of the most common pitfalls for expats buying Irish property is underestimating the difficulty of obtaining a mortgage. Many Irish banks have strict requirements for returning expats, including:
- Proof of income for the past two to three years.
- A solid credit history.
- A deposit of at least 10%-30% (depending on lender criteria).
If you’ve been working abroad, some lenders may hesitate unless your income is in euros or from an approved country.
Skipping the Mortgage Pre-Approval Process
House-hunting without mortgage pre-approval can lead to disappointment if you find the perfect property but can’t secure financing. Pre-approval shows sellers that you’re a serious buyer and helps you set realistic price expectations.
Tip: Speak to a mortgage broker who specialises in expat mortgages in Ireland to assess your eligibility before starting your property search.
- Not Researching the Legal and Tax Implications
Overlooking Legal Requirements
Irish property transactions involve strict legal processes, and failing to comply can delay or even derail your purchase. Key legal steps include:
- Hiring a solicitor to handle contracts and title transfers.
- Checking property ownership history.
- Ensuring there are no outstanding planning issues or boundary disputes.
If you’re buying a rural property, be aware of rights of way and access restrictions, which are common in older homes.
Ignoring Tax Implications for Expats
As a returning expat, you may face additional tax considerations, such as:
- Capital Gains Tax (CGT): If you later sell the property.
- Rental Income Tax: If you plan to rent out part of the home.
- Foreign income and tax residency status: If you still have earnings abroad, it’s crucial to understand Ireland’s tax residency rules.
Tip: Consult a tax advisor to avoid unexpected financial obligations.
5. Choosing the Wrong Location for Your Lifestyle
Prioritising Price Over Location
While affordability is important, location plays a huge role in property value and quality of life. Many expats regret purchasing in areas that don’t suit their lifestyle or commuting needs.
When choosing a location, consider:
- Proximity to family, friends, and work.
- Access to public transport and motorways.
- Availability of schools, healthcare, and local amenities.
- Internet and mobile coverage (especially in rural areas).
Overlooking Future Growth Potential
Areas with good infrastructure, transport links, and development plans tend to increase in value over time. Don’t just think about today—consider how the area might evolve over the next 5-10 years.
Tip: Visit neighbourhoods at different times of the day to get a feel for traffic, noise levels, and safety before making a decision.
Final Thoughts: Making a Smart Move as a Returning Expat
Avoiding these expat property buying mistakes in Ireland can save you time, money, and stress.
With careful planning, professional advice, and due diligence, you can find the perfect property to call home in Ireland.
Looking for expert help? Speak to an estate agent, mortgage broker, and solicitor before making an offer to ensure a smooth purchasing process. Working with a reputable legal team like McKenna & Co Solicitors can make all the difference when navigating property transactions in Ireland. With our expertise in property law, commercial real estate, and conveyancing, we provide invaluable guidance to ensure that all legal aspects of your purchase are handled efficiently.
If you’re planning to buy a home, don’t leave anything to chance. Contact McKenna & Co Solicitors today for expert legal support and ensure a seamless property purchase process.
