Budget thread and implications for landlords and tenants - discussion thread

The_Conductor

Guys- rather than having a myriad of threads spiralling all over the place, in relation to the various proposals and/or budgetary changes as they pertain to landlords and tenants, I would be grateful if all discussion on the forthcoming budget and its changes- could as far as is reasonable, be kept to this thread.

Thankyou,

Shane

The_Conductor

I'll get the ball rolling- regarding the 'leaks' at the weekend regarding rental income. It would appear that Joan Burton is pushing to broaden the PRSI base, by including all rental income and income from stocks/shares as income taxable at the full rate of PRSI. I don't know how she proposes to implement this- aka at the moment PRSI is chargeable on gross income in the PAYE sector- if she were to do similar for the rental sector- even if you're in a loss making scenario- you'd still be liable for PRSI on the gross income.........

Certainly there are bridges that have to be crossed- income to be raised and expenditure to be chopped- however, as most recent landlords seem to be people letting their one and only property- as they purchased in locations that suit- surely a reflection of this- by allowing them to offset their rental income against their outgoings (to include rent they are paying elsewhere) in instances where they only own a single property- would be more equitable?

In other headlines- some welcome developments for tenants of landlords who are accepting state rental support (via any of the schemes). New minimum standards to be implemented, to include remedial actions to improve the Energy ratings of the buildings being let (and a change of the way in which the SEI grant schemes work to assist in retrofitting and/or improving insulation and heating systems, to reflect pay-as-you-go costs (this sounds interesting- I'd love to see the details).

We're in for an interesting time...........

Zamboni

smccarrick wrote: »

I'll get the ball rolling- regarding the 'leaks' at the weekend regarding rental income. It would appear that Joan Burton is pushing to broaden the PRSI base, by including all rental income and income from stocks/shares as income taxable at the full rate of PRSI. I don't know how she proposes to implement this- aka at the moment PRSI is chargeable on gross income in the PAYE sector- if she were to do similar for the rental sector- even if you're in a loss making scenario- you'd still be liable for PRSI on the gross income.........

It is beyond me why this is being tabled.
Why create and implement obfuscating and complex taxation measures when a simple cut to the rent allowance would yield any required savings?

odds_on

http://irishlandlord.com/forum/showthread.php?t=2480

Indications are ( from my political sources) that Rent Supplement will not be paid after 1st March for rental properties where there is no BER, irrespective of how long the tenancy has been in place, and that Rent Supplement will be fully withdrawn from properties with a BER Below C1 from 1st September next.

Most households in energy poverty are owner occupied. However households in energy poverty account for a disproportionate burden on the Health System and particularly hospital admissions.

Diverting part of the Health Budget into energy saving measures is being strongly considered. It costs a typical €5000 to get a house from D to E standard which is what it costs to hospitalize someone with a medical card for a week.

And how much more will it cost to get from D1 to C1.

Another great expense for landlords (especially just for tenants who are generally branded as being bad tenants).

I can see there is going to be a lack of accommodation for rent supplement tenants after March.

And if landlords will also have to pay extra more tax in the form of PRSI;
not to mention the possibility that there could be reforms to Section 23.

Who'd want to be a landlord!

annie_m

Not sure if this is the right place but any idea how much RA will drop

NIMAN

No one knows, yet.

As a reluctant LL, I am not looking forward to this Budget, think LLs are going to suffer.

I moved out of my own house to another property we bought, and only became a LL as I could not sell my 1st house. I have a great tenant and am happy so far, although I have not had to do a tax return so far, so haven't felt the pain of paying tax yet.

If I could get out of the LL game, and sell my house tomorrow, I would. I think its only going to get more troublesome and costly to own 2 properties in this country.

okedoke

smccarrick wrote: »

by allowing them to offset their rental income against their outgoings (to include rent they are paying elsewhere) in instances where they only own a single property- would be more equitable?

We're in for an interesting time...........

Why should landlords be allowed to set off living expenses (like rent) against taxable income, no other income tax payers can do this?

The_Conductor

okedoke wrote: »

Why should landlords be allowed to set off living expenses (like rent) against taxable income, no other income tax payers can do this?

In cases where a person is letting their sole PPR (be it an apartment or whatever) and has to rent themselves elsewhere. This could be because their current property is unsuitable (e.g. if its a small apartment and they have had children- had to move because of work (or lack thereof) etc.

In cases like this- where it is a person's sole property, its now unsuitable for them (for whatever reason) and they have to rent elsewhere- I do genuinely think that its reasonable that their rental income should be allowed to be offset against their separate rental outgoings (totally aside from any other considerations- and solely for the likes of folk who are renting out their sole property as its no longer suitable for them).......

?

loyatemu

odds_on wrote: »

http://irishlandlord.com/forum/showthread.php?t=2480

And how much more will it cost to get from D1 to C1.

I lived in a house built in 2006, when we sold up it got a C3 rating - getting any property from E or D up to C1 would be a lot of work.

the groutch

is mortgage interest relief for new buyers officially gone from december 31st, or is that still to be confirmed in this budget?