Propert Investment

tech

Im looking at buying a house as an investment something cheap ish @ 100k

If I bought this for cash / loan no mortgage, and lets say the rent was 800 PM

giving me a total of 9600 rent per year, would I have to pay close on 50% tax on the rental income? Or what can I off set against this rental income to reduce the tax paid on the rent?

house insurance
Property Tax
Property Management fees?



Thanks

CIARAN_BOYLE

tech wrote: »

house insurance
Property Tax
Property Management fees?

Yes
No
Yes
Repairs etc
Accountancy for someone to do your return
75% of mortgage interest

filbert the fox

tech wrote: »

Im looking at buying a house as an investment something cheap ish @ 100k

If I bought this for cash / loan no mortgage, and lets say the rent was 800 PM

giving me a total of 9600 rent per year, would I have to pay close on 50% tax on the rental income? Or what can I off set against this rental income to reduce the tax paid on the rent?

house insurance
Property Tax
Property Management fees?




Thanks

You'd be in the range of 52% tax. (marginal rate + PRSI + USC).

With no mortgage you'd have no interest to offset against income.


Possible deductions..
Insurance,
management fees,
depreciation on furniture,
maintenance expenses, .

Definite non recoverable expenses:
Property Tax
Private Residential Tenancies Board registration and renewal.
Your labour.
Solicitors fees on purchase.
Land Registration fees.

Hazards:
Bad Tenants
No tenants
Bad Neighbours
More unforseen non-deductable taxes.
Market forces.
Compliance with ever demanding Private Rented Dwelling legislation.


Think seriously about this...... €9600 income. You could be paying €4,000 or more per annum on this in "income tax". This puts you into the preliminary tax qualifying bracket also. i.e pay up front.

Are you prepared to receive a notification from your tenants on new year's eve that the plumbing has malfunctioned? do you think your tenants know that the washing machine filter needs to be cleaned periodically? Who's cutting the grass? Are you landlord material?

So. If I had €100,000 I'd choose the easy life.... Hire a fee based independent financial consultant and invest in a variety of products e.g. bonds, gold, blue chip companies, government savings, etc.

tech

Yeah it dosent sound like its worth the hassle been honest, alot of crap to deal with