I guess furniture is out then as I'm just letting for one year....so offset over 8 years doesn't really do a lot in that instance. About to get the house painted so at least that can be used to offset.Furniture is wear and tear. So over 8 years. Painting is just a normal expense. Can you list the expenses.
What are the implications of not informing the lender out of interest? Asking for a friendHave you told your lender that you are converting your home into an investment property?
We're going off topic here but you know the answer to that! Furthermore, it's hardly a strategic choice I made (and you are aware I said it was for a period of one year - so it's also not a permanent switch of property classification). Are you saying you would? Whats to be gained from that disclosure? It's often been speculated in the past that banks may use the opportunity to pull the tracker. I've not been tuned in to any such circumstances arising in the interim....but perhaps you have some info to impart in that regard..Have you told your lender that you are converting your home into an investment property?
Absolutely - nothing good can come from that.There is no need to inform the bank. Don't open that can.
I'm away but have someone meeting a painter this evening to quote for the work.When are you painting the property?
I never got round to this originally (for the first couple of months) which I know was foolish...but renewed insurance to reflect a rental property.But do inform the house insurance company that the property is going to be let.
I'm not sure I understand? I have a 1 year fixed contract with the tenant - and tenant is a sibling of my next door neighbour..so not expecting any problems there. As regards the expensive stuff, if it would offset tax, then yes, I'd do that - but it doesn't seem like that idea works (as most items I can think of would probably fall under that 8 year offset palaver)....unless someone has any thoughts on appropriate items?Seems odd to be only letting for one year and then deciding to put in expensive stuff. How do you know you'll have an easy job the tenant leaving after a year. Good luck with that in today's overheated market.
As regards the expensive stuff, if it would offset tax, then yes, I'd do that
Indeed...although you do remind me of that one window thats had a crack in it and hasn't been repaired the last couple of years - I'll add that to the list. Sometimes, such an offset can provide the extra motivation to get stuff like that taken care of.Incurring overheads don't offset tax. Overheads merely attract a deduction against taxable profits. So you spend €100 to recoup a tax saving of 20%/40%/whatever. That's why it never makes sense to break your own windows to attract tax relief on repairing them.
If there are other items of a similar nature, I'd be foolish not to seek to do them right now..
Just be careful, if the amount of repairs and maintenance expenditure appears disproportionate or out of kilter with the rental income you earn, it may attract Revenue attention and they may disallow some or all of it.
I'm not sure I understand? I have a 1 year fixed contract with the tenant - and tenant is a sibling of my next door neighbour..so not expecting any problems there.
The house was let in a rush. It had not been painted externally for many years as there was a back and forth with an insurer over a structural liability issue (which has since been settled). It looks terrible and we did actually say to the tenant that we intended to paint it (although he's pretty laid back and hasn't made any issue of it).I'm already seeing red flashing lights with this one. And who paints a property mid way through a one year tenancy.
You'll have to forgive my ignorance on this. I'm an accidental landlord whereas I'd imagine you have years of experience. Is a fixed term tenancy agreement not worth the paper it's written on?? I was vaguely aware of protections for landlords being woeful but thought that a fixed term tenancy stands up?Delighted you've a contract. In two decades I've never had one. Why. Pointless is why. But you do have a good chance with the relationship angle, until they move in the girlfriend, split up, and girlfriend moves in boyfriend 2. LOL.
Potential loss of tracker is the obvious one.What are the implications of not informing the lender out of interest? Asking for a friend.
Not off topic in the least.We're going off topic here but you know the answer to that! Furthermore, it's hardly a strategic choice I made (and you are aware I said it was for a period of one year - so it's also not a permanent switch of property classification). Are you saying you would? Whats to be gained from that disclosure? It's often been speculated in the past that banks may use the opportunity to pull the tracker. I've not been tuned in to any such circumstances arising in the interim....but perhaps you have some info to impart in that regard..
Of course there is, if only to check the OP is not in breach of contractThere is no need to inform the bank. Don't open that can.
Sure, but I assumed the way you phrased it there was some negative implication to not informing them, like it breaks a covenant and allows them seize the property and you forfeit your payments or something like thatPotential loss of tracker is the obvious one.
Ah come on.@mathepac It's got nothing to do with minimising the tax liability on the rental.
I'd sooner stump up expenditure on the house instead of shelling it out in tax.
Are we reading the same stuff or not? Mathepac went on a solo run about whether I had informed my lender that I had rented out the property. That's got nothing to do with my query.Ah come on.
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