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Property Investment Dublin

  • 25-03-2012 8:23pm
    #1
    owenio
    Closed Accounts Posts: 2 ✭


    Hi there,

    I am thinking of buying an apartment in Dublin now that prices have dropped
    so significantly and because rental yields are attractive.
    I am a first time buyer and would have to take out a mortgage.
    What are the tax implications if I rent the property out?
    Will the rent be treated as income?


Comments

  • #2
    bren2002
    Registered Users, Registered Users 2 Posts: 1,208 ✭✭✭bren2002


    owenio wrote: »
    Hi there,

    I am thinking of buying an apartment in Dublin now that prices have dropped
    so significantly and because rental yields are attractive.
    I am a first time buyer and would have to take out a mortgage.
    What are the tax implications if I rent the property out?
    Will the rent be treated as income?

    Seek professional advice.


  • #3
    killers1
    Registered Users, Registered Users 2 Posts: 1,443 ✭✭✭killers1


    owenio wrote: »
    Hi there,

    I am thinking of buying an apartment in Dublin now that prices have dropped
    so significantly and because rental yields are attractive.
    I am a first time buyer and would have to take out a mortgage.
    What are the tax implications if I rent the property out?
    Will the rent be treated as income?

    If you are taking out a mortgage it will be at the more expensive Investment Property Loan rates. You will also need a substantial deposit. All rental income is subject to tax but you can offset 75% of the mortgage interest paid and some expenses in relation to the property when calculating your tax liability. The following link explains..

    http://www.revenue.ie/en/tax/it/leaflets/it70.html#section4tion


  • #4
    owenio
    Closed Accounts Posts: 2 ✭owenio


    thanks for the advice killers.


  • #5
    RATM
    Closed Accounts Posts: 3,591 ✭✭✭RATM


    OP prices are only now just beginning to show value. I saw a 2 bed house in Dublin 1 for €99k the other day.

    But with property taxes and reductions in mortgage interest relief coming down the road and PRTB registrations, potential hassles with tenants, apartment being empty some of the time etc., you'll need to find a gross yield of a minimum of 10%, preferably 12% to offset the raft of costs.

    In any case I don't think the banks are lending to buy to let investors.


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