Just heard the Minister on the radio.
If I understood him correctly, there will be no moratorium on issuing termination notices and notice periods can continue to run during the moratorium period.
However, "no fault" termination notices cannot take effect during the moratorium period to 31 March and will only take effect after the moratorium period ends on a sliding scale depending on the length of the tenancy.
I would be hopping mad if I issued a valid termination notice months ago and I now have to wait a further 6 months to get vacant possession of my property.
As a matter of interest, do you know if the minister advised of an explicit end date for the moratorium ? Thank you.
Having come out the wrong end of the "temporary" RPZ introduced in 2016, if I had not already issued termination notices to my few tenants recently, I would certainly have a concern that this proposed legislation is in fact the thin edge of the wedge. Resultantly, I would immediately serve extended notices (1 or 2 year notice periods) to existing tenants (abiding by the most recent RTB rules).
I expect this government decision will stop any further mom & pop investment in BTLs in the Irish market. A Section 23/28/48 lever may be the only way to provide a future kickstart to this section of the market in Ireland... I wonder if this proposed legislation will have an impact on sale prices as investors rush to exit.
To alleviate the exodus of BTL investors, I'm sure one of the more informed posters will be able to put me straight on why the Dept of Finance does not step in to offer a CGT exemption (similar to the 2011-2014) offering and / or tax relief for (ahem...) unearned rental income against PAYE returns over a 2-4 year period. That would slow down the exodus of small BTL investors I expect, at least in the short term. Having said that, personally, based on the various reports outlining this moratorium, I would now have a concern about the continued erosion of asset and property rights for non-incorporated individuals and the possible impact to investors exiting the market normally (sale) in future.
Very much finger in the air numbers, but as a direct result of government meddling, if an additional 6,000 investors exit the market each year, who would otherwise remain, and each (on average, subject to CGT) clear €100K per property and invest overseas instead... that is a notional €600m of wealth per year that is leaving the Irish economy. Keen to be enlightened and corrected....