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29-07-2020, 17:06   #1
St1mpMeister
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Roughly how much would be earned from a monthly rent of €2,200 ?

As per the title, assuming my property could be rented for €2,200 roughly what is average take home after all taxes/costs have been accounted for?

Assume for the sake of argument that I have good tenants that pay on time and the only costs would be typical wear and tear.
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29-07-2020, 17:10   #2
L1011
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Is the property mortgaged or held outright?
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29-07-2020, 17:19   #3
Thierry12
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Is the property mortgaged or held outright?
Interesting question

If someone is doing a calculation, could mine be done too ?

1200 rent pm ( no mortgage, house owned outright )

Combined married couple salary of €60,000 per year
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29-07-2020, 18:18   #4
St1mpMeister
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Is the property mortgaged or held outright?
Not sure why that would matter, does it affect the tax level or something similar?

For reference I would be on the higher tax rate.
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29-07-2020, 18:20   #5
Pkiernan
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Originally Posted by St1mpMeister View Post
As per the title, assuming my property could be rented for €2,200 roughly what is average take home after all taxes/costs have been accounted for?

Assume for the sake of argument that I have good tenants that pay on time and the only costs would be typical wear and tear.
If you're already paying the marginal rate, then assume 53% tax on the income.

You can deduct mortgage interest if any, repairs, insurance and management company fees if applicable.
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29-07-2020, 18:20   #6
thomas 123
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Not sure why that would matter, does it affect the tax level or something similar?
You would need to subtract the mortgage cost off the rent price.

Owned = more profit.
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29-07-2020, 18:22   #7
St1mpMeister
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You would need to subtract the mortgage cost off the rent price.

Owned = more profit.
No I wasn't talking about profit.. I was just talking about net income from the property alone, not factoring in my own private expenditure.
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29-07-2020, 18:23   #8
Thierry12
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Not sure why that would matter, does it affect the tax level or something similar?
You can deduct the interest on mortgages used to purchase, improve or repair rented residential property when working out your rental income for tax purposes.
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29-07-2020, 18:27   #9
St1mpMeister
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ok so as a VERY ROUGH approximation.

€2,200 rent would get €1,034 after tax assuming no mortgage or repairs.


I'm currently looking at getting a 2nd property that would have roughly €500/month mortgage, so it's good to know I'll be able to pay it off using the rent from the first place.
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29-07-2020, 22:11   #10
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Does that rate of tax change if you rent your property while your out of the country and have an overseas bank account?
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29-07-2020, 22:42   #11
redarmyblues
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Does that rate of tax change if you rent your property while your out of the country and have an overseas bank account?
That depends where you are tax resident.

OP this is not a good time to get into the private rental market.
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29-07-2020, 22:46   #12
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Does that rate of tax change if you rent your property while your out of the country and have an overseas bank account?

Yes, you generally don't get the full tax credit, you can get a small tax credit based on the percentage of income earned from the rent vs. your total worldwide income. If you are resident of a country that has a tax treaty with Ireland then you can offset the tax paid in Ireland against the tax paid in the country where you are resident.
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29-07-2020, 22:48   #13
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Put aside about 2k for insurance, costs and upkeep etc. Some years it will be less, other years a boiler might go and it will be more. So average about 2k.

Then add up all the rest and half it for tax, and you are in the ball park of 12k.

It's not the most accurate but a good finger in the wind estimate.
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29-07-2020, 22:50   #14
triggermortis
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If the property is mortgaged then you'll need to notify the mortgage lender as your tax allowance on the mortgage will change if it is no longer your main residence. We recently sold our house and got hit with an unexpected bill as we didn't do this at the time of renting it out. We were out of the country for part of the rental time and so the income wasn't as badly taxed as when we came home, but the tax bill for what I mentioned earlier was unwelcome news.
Glad to be out of the rental market now though.
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29-07-2020, 22:56   #15
Samuel T. Cogley
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If the property is mortgaged then you'll need to notify the mortgage lender as your tax allowance on the mortgage will change if it is no longer your main residence. We recently sold our house and got hit with an unexpected bill as we didn't do this at the time of renting it out. We were out of the country for part of the rental time and so the income wasn't as badly taxed as when we came home, but the tax bill for what I mentioned earlier was unwelcome news.
Glad to be out of the rental market now though.
Not only will your tax allowance change if in receipt of TRS, but in most cases you'd have to convert to a Buy to Let mortgage with the attached exorbitant interest rate.
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