A saving of 33% on CGT is definitely a no brainer and makes the investment very worthwhile.
I remember when the expression no brainer was the mantra about everything imaginable.
You are assuming there will be a gain and that is a big assumption as there may not be in real terms when you factor in all costs of your investment choice, costs of ownership, taxes, vacancy periods, problems, repairs etc and the usual hassles. Investment property will not be as attractive as it has been this past 12/18 months for the following reasons.
*The zero % seven year CGT incentive dies 31.12.14, this has been a massive driver in times of low deposit interest rates and has brought people into residential property as an asset class when they may otherwise have stayed out, I've been to auctions and viewings and they stand out from the crowd, these are chasing yield and the elusive appreciation.
* Cash investors are either already in this market or are now a small percentage of it.
* Yields are compressed especially in desirable areas where there has already been a massive uplift this past 12 months in prices being achieved, take a look at the property price register in these so called desirable areas, commuter belts, Cities etc
* Challenges in getting a mortgage from January 2015 with new CB rules in place.
My view is that there will be a glut of property for sale from year 5 onwards as those who became reluctant landlords and reluctant 2nd home owners try to get out and avail of the exemption IF they can.
For me property in Ireland right now is absolutely the wrong investment choice, in my view buy now and you will get burned, wait until Autumn next year for the market to settle and as I see it you might well grab yourself a bargain but I won't be looking to get into this market.