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29-07-2020, 22:59   #16
Sheep Shagger
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Originally Posted by Samuel T. Cogley View Post
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.
Not always, depends on if its stipulated as owner occupier in the fine print - we are on a tracker and the bank advised no change when we started renting the place out.

IF you do have to change to a higher interest rate, that's more to write off as an expense.
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29-07-2020, 23:01   #17
Samuel T. Cogley
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Not always, depends on if its stipulated as owner occupier in the fine print - we are on a tracker and the bank advised no change when we started renting the place out.
Hence the use of 'in most cases'.
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29-07-2020, 23:07   #18
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You would need to subtract the mortgage cost off the rent price.

Owned = more profit.
You can write off the interesf cost (not the full mortgage amount you pay the bank each month). The bank provides you a breakdown of principal and interest paid each calendar year.
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30-07-2020, 11:22   #19
St1mpMeister
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Originally Posted by redarmyblues View Post
OP this is not a good time to get into the private rental market.
Why is that?

As I mentioned I'd be satisfied ending up with circa €500 per month for the €2,200 rent after factoring the other costs.
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30-07-2020, 11:27   #20
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Originally Posted by St1mpMeister View Post
Why is that?

As I mentioned I'd be satisfied ending up with circa €500 per month for the €2,200 rent after factoring the other costs.
you might end up getting €0 per month.
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30-07-2020, 11:35   #21
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Has anyone on boards.ie ever said it's a good time to get into the rental market? Go for it if it works for you OP. You would think owning a second property is worse than hell according to most on here.
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30-07-2020, 11:41   #22
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Originally Posted by St1mpMeister View Post
Why is that?

As I mentioned I'd be satisfied ending up with circa €500 per month for the €2,200 rent after factoring the other costs.
Because there is risk in the investment and time invested managing the tenant or property.

Your assuming 100% occupancy rates.
Your assuming your time investment will be minimal or hands off.
You could get stung for very high repair costs in the property itself, naturally.
You could get the atypical bad tenant, loose 1 to 2 years of rent and be faced with significant repair bills.
Market forces could devalue the property.
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30-07-2020, 11:45   #23
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Has anyone on boards.ie ever said it's a good time to get into the rental market?
I don't think so. But this board gets to see the bad side of the market clearer then most.

But we are currently in a situation where the established industry is leaving in droves. For new investors, it would be worth their while considering why that is currently happening before investing significant sums of their money.

Simply put, if its such a good investment, why are investors leaving in droves?
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30-07-2020, 12:00   #24
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I don't think so. But this board gets to see the bad side of the market clearer then most.

But we are currently in a situation where the established industry is leaving in droves. For new investors, it would be worth their while considering why that is currently happening before investing significant sums of their money.

Simply put, if its such a good investment, why are investors leaving in droves?
Was there ever a time when they had entered it? Not according to people on here. There is bad tenants but its completely overblown here. There can be good tenants as well that stay for 5-10 years with very little issues. It may be better investing money elsewhere of course, like any investment but no guarantee in that either (unless a savings account with very low interest rates).
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30-07-2020, 12:05   #25
St1mpMeister
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Originally Posted by Cuddlesworth View Post
Because there is risk in the investment and time invested managing the tenant or property.

Your assuming 100% occupancy rates.
Your assuming your time investment will be minimal or hands off.
You could get stung for very high repair costs in the property itself, naturally.
You could get the atypical bad tenant, loose 1 to 2 years of rent and be faced with significant repair bills.
Market forces could devalue the property.
Would outsourcing this to an agency to manage offset some of these issues?

I'd probably want to meet the tenants to vet them before they moved in, but after that I could give it to an agency to manage.

The property is in a high demand area so I suspect no issues getting it rented.


Also just to be clear, the €500 per month is something I could pay myself without relying on the rent, so downtime between tenants is fine or having some periods where I end up with nothing due to repairs etc, but it's just a nice additional income for the times when it does work out.

Last edited by St1mpMeister; 30-07-2020 at 12:13.
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30-07-2020, 12:15   #26
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using my own rental as a budget template

Expenses ~1000 a year
this is replacing white goods every 4 or so years painting and carpets every 3 years and repairs.
If your renting fully furnished you could increase this to ~1500
Dead time between tenants subtract 1 months rent per year
if your using a letting company to manage the property subtract 1 more month each year
Gardening costs ?

Insurance ~600 a year
Accountant for tax return ~200 a year
property tax ~300

So Income for tax purposes 2200*11 = 24,200
Expenses ~4300
=19900
tax bill -10,547

Income 9353 after tax

if you have a mortgage you can subtract the cost of interest as an expense but not the mortgage payment
So with a mortgage payment of 6,000 a year you would earn a little over 3k a year while also gradually buying an appreciating asset
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30-07-2020, 13:21   #27
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Grand thanks, the expenses would be higher than I'd estimate for my place though since it's a largely low-maintenance place.
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30-07-2020, 13:53   #28
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Just a note on the interest from your mortgage, it can only be deducted if the tenancy is registered with RTB.

Good information here.
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30-07-2020, 14:17   #29
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Originally Posted by MattS1 View Post
Has anyone on boards.ie ever said it's a good time to get into the rental market? Go for it if it works for you OP. You would think owning a second property is worse than hell according to most on here.
Never a good time to buy a house, car, graphics card, you name it

Most risk aversed place around
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30-07-2020, 18:45   #30
Samuel T. Cogley
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Has anyone on boards.ie ever said it's a good time to get into the rental market? Go for it if it works for you OP. You would think owning a second property is worse than hell according to most on here.
There have been brilliant times to get into the market and there will be again. Cash buyer at the depths of a recession especially if there is a break on CAT is one of them.

In a property bubble when evictions have been banned is not a good time to become a LL. The legislative backdrop has been getting worse for years hence why people advise prudence.

While worse than hell might be an exaggeration, it's a constant worry - even with good tenants and very stressful if you get someone who doesn't pay the rent and is probably trashing the place. Delinquent tenants exist in all segments of the market.

I'm open to correction on the legal costs but a full blown eviction taking 18 months is what €10K? Damage can be anyone's guess. Zero chance of recovery from the tenant. Fine if you've the cash flow and contingency fund but many people go into this with neither.
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