Holiday Let and Retirement

The holiday season in Ireland is very short. You might only be let for 10 weeks of the year! When you eventually return a holiday let may not be the most suitable accommodation for you in retirement. many holiday resorts are remote from hospitals and some don't even have a doctor. Not ideal for an elderly person.

Also consider tax. Assuming you are not Irish tax resident:

Irish tax; you will have to file an irish tax return. You will have your Irish income tax band and credits available so you will likely not hit the marginal (high) tax rate but you will still have tax to pay. Your profit will consist of rental income less expenses incurred when property is available for renting (even if vacant for some of the year) which would include things like agency fees, mortgage interest (not capital payments only rental income), repairs, even a flight over to check property, capital allowances on fixtures and fittings (eg washing machine, fridge but not fixed items like windows or carpets) out etc).

Local tax return: you will also likely have to include your rental profit here. You should also be allowed to include the irish tax paid as a deduction via double taxation relief.

Overall a good idea as you should be able to buy a property and if you are letting out as airbnb type thing you should have access (you will need to disallow this % from your expenses - eg you live in for 1mth then you only get to deduct 11/12 of your expenses). You would also be able to get a tax deduction for your capital allowances so when you move home eventually you should have a fitted out property.

Also consider selling in the future in case you are not happy with it. As it will not have been your main global residence for all your ownership you will be liable for capital gains tax of 33% on any uplift on the price for the period it was not your main global residence.

Why not just buy a house in 5 years ?

Have you considered

the impact of demand in 5years time purchasing now

The impact of WFH on on tourist area prices. Will there be pushback on WFH

Multiple ftb grants for purchasers which I assume you would not qualify for. Will the state always have the money to maintain these price supports

If people are buying to leave empty because they are afraid of renting, that will leave alot of stock to hit the market in the event of a downturn

Alot of frought in the market that is unaffordable to the majority, plus market dynamics that may not exist in 5 years time

Have you considered Sligo, bit of a hidden gem, strong off season student demand plus tourist season also Tralee, Waterford

"investments can go up and down"

Don't make the decision on what may or may not happen on price.

Your personal circumstances can change in a 5 year timeframe, so unless you have a plan b, don't do it.

On the flip side, many holiday homes are let out long term and councils do little to stop it due to the housing issue.

So if buying, rent it as normal and when you need it issue a notice of termination - ideally let the renters know your plans.