G
GC123
Guest
Hi All,
Long time lurker here but first time poster.
I have recently been made redundant and my husband was also made redundant last March. We are coming to a position where we may not be able to pay the mortgage on our family home for much longer and I want to see what our shortfall would be in tax / making up repayments if we were to rent it.
I would be a reluctant landlord, however it seems with prices in the area that selling is not an option right now. We have a central location close to Croke Park so we would hope to rent easily.
Our mortgage is currently on a tracker rate of ECB +0.8% with an o/s balance of just over €340k (4 bedroom home). (I have to check my paperwork to see if this rate is still applicable if the home is no longer a residential property)
Our mortgage payment (excluding TRS) is €19,296 annually. Our interest portion is approximately €6120. If we rented we would expect to get 1200-1400 per month in line with other properties recently rented in the area.
If we rented at €1400/month, this would give us an annual income of €16,800. I realise that it might not be rented all the time, but I just want to do a rough calculation based on these figures.
I also wanted to check the way in which we can calculate capital allowances. Our furniture is approximately 2yrs old, and we have receipts for it. Would we use a depreciation figure of 12.5% for each year for the past 2 years and use that figure as our starting figure for capital allowances?
Income €16,800
Allowable Interest @ 75% - €4590
Total rental income €12210
Expenses
PRTB Registration €70
House Insurance €550
Life Insurance for mortgage €600
Advertising €25
Lease fees €25
Repairs & Maintenance €300 (estimate)
Cleaning €200
Accountant Rental Return €250
Total Expenses €2020
Net rental income €10190
Less Capital expense €3000 * 12.5% = €375
Taxable rental income €9815
Taxable @ 41% (worst case scenario if both husband and I gain employment)
Tax due €4024
Income Levy 2% of €16800 = €336
Property tax - €200 (although likely to go up in budget)
Total cost of renting: €4560 / plus balance of mortgage €2500 approx - 7060
Can anyone confirm if these figures are about right?
Thanks,
GC123
Long time lurker here but first time poster.
I have recently been made redundant and my husband was also made redundant last March. We are coming to a position where we may not be able to pay the mortgage on our family home for much longer and I want to see what our shortfall would be in tax / making up repayments if we were to rent it.
I would be a reluctant landlord, however it seems with prices in the area that selling is not an option right now. We have a central location close to Croke Park so we would hope to rent easily.
Our mortgage is currently on a tracker rate of ECB +0.8% with an o/s balance of just over €340k (4 bedroom home). (I have to check my paperwork to see if this rate is still applicable if the home is no longer a residential property)
Our mortgage payment (excluding TRS) is €19,296 annually. Our interest portion is approximately €6120. If we rented we would expect to get 1200-1400 per month in line with other properties recently rented in the area.
If we rented at €1400/month, this would give us an annual income of €16,800. I realise that it might not be rented all the time, but I just want to do a rough calculation based on these figures.
I also wanted to check the way in which we can calculate capital allowances. Our furniture is approximately 2yrs old, and we have receipts for it. Would we use a depreciation figure of 12.5% for each year for the past 2 years and use that figure as our starting figure for capital allowances?
Income €16,800
Allowable Interest @ 75% - €4590
Total rental income €12210
Expenses
PRTB Registration €70
House Insurance €550
Life Insurance for mortgage €600
Advertising €25
Lease fees €25
Repairs & Maintenance €300 (estimate)
Cleaning €200
Accountant Rental Return €250
Total Expenses €2020
Net rental income €10190
Less Capital expense €3000 * 12.5% = €375
Taxable rental income €9815
Taxable @ 41% (worst case scenario if both husband and I gain employment)
Tax due €4024
Income Levy 2% of €16800 = €336
Property tax - €200 (although likely to go up in budget)
Total cost of renting: €4560 / plus balance of mortgage €2500 approx - 7060
Can anyone confirm if these figures are about right?
Thanks,
GC123