Those planning to purchase a house in the forthcoming years are willing to spend an average of €335,000 on a property, €74,000 more than the current average cost of houses in Ireland, which is €261,000.
Lotus Investment Group, a Dublin-based investment management firm, commissioned a survey which was conducted by iReach, to find out who would like to buy a property over the next few years and what they are willing or planning to spend.
The survey of 1,000 adults throughout Ireland also found that six in ten people aspire to buy their first property or move to a different property within the next few years, with more males than females expressing their wish to do so. However, the property financiers say many of these would-be homeowners could be left disappointed, as the supply of new homes and the number of second-hand properties coming onto the market falls way short of the demand. Of those who expressed their desire to buy, 33 percent planned to spend between €200,000 and €250,000, 23 percent plan to spend between €250,000 and €300,000, 25 percent plan to spend between €300,000 and €400,000, 12 percent plan to spend between €400,000 and €500,000, four percent plan to spend between €500,000 and €750,000, while three percent plan to spend in excess of €750,000.
Speaking of the findings, David Grin, Chairperson of Lotus Investment Group, commented, “supply issues have created a large gulf between aspiration and reality when it comes to home ownership. The topline headings are as you would expect with many people aspiring to buy. Many of these people are likely to be met with challenges, some will not raise enough money to do so as prices continue to rise, while others will simply struggle to find a property that suits their needs, as the construction of new homes has not nearly reached the level of output required. While some property commentators have indicated that property prices have plateaued, the fact that potential house buyers appear to be willing to spend more could suggest that house prices will continue to rise as competition on the market heats up.”