Hi there,
I lived in Killarney for nine years before moving to Dublin. Believe me when I tell you that e320 will buy you a house in Killarney that in Dublin would cost in the region of e800,000.
Got 3-bed semis are selling for about e300,000. If you want to move further outside the town, you will get better value. But move quickly - as the town is bordered on one side by the National Park and on the other by the by-pass, the price and availability of land is now almost at a premium.
Best of luck in your quest!!