Discussion in 'Budget 2019' started by Brendan Burgess, 9 Oct 2018.
Full restoration of interest rate reduction for landlords from 1 Jan 2019
What does this mean?
It means I can't type quick enough.
Anything else for landlords? Anything to encourage us to renovate? Or purchase and renovate? I was hoping with the granny grant there might be a move on this.
Aren't ye rich enough?
Many weeks between announcement of Budget and passing of the Bill in the Dail. I think though the granny-grant was aimed at owner-occupiers .. ..
This change would be worth around €400 to a landlord with a €4,000 interest bill.
Enough to keep him in the property rental game? Maybe.
I think its long term effect will be to remove one obstacle to new investors entering the market. These are essential if housebuilders are going to be in a position to deliver a decent volumes of new builds in the coming years.
Personally I think it is a redundant idea. The issue is a lack of supply, not a lack of LL's. Landlords dont build houses, they compete with prospective owner occupiers for available properties, pushing up house prices, turning prospective buyers into tenants.
Not a chance of that weak effort getting landlords to stay.
And as for new entrants ... Not a chance either.
They know now that the goalposts can move at a whim and that they never favour the landlord. And if they do it will be a BS move not worth a damn like this one.
Property investment is too risky. Both the risk of sudden change to legislation and the risk of non paying tenants.
Anyone wanting in is just nuts.
I’m not convinced that it’s that weak an effort.
For a new entrant who’s looking to borrow, rates are very high. Too often, people look through the prism of an existing landlord with a tracker.
I see full deductibility and think that when the bank tells me that I can borrow at 4.5%, it’s really 2.25% which is more than palatable.
This may be a stupid question. Does this mean that when filing a tax return next year for 2018 accounts one can allow 100% of interest or the 2019 interest is 100% deductible in 2020?
No, for 2019 (submitted in 2020), you can deduct 100% (subject to meeting the other conditions).
Not that that will make a difference to the overall housing situation - +1 for owner occupier, -1 for rental properties
Unless it encourages more people to invest in buying new homes for renting out, I suppose
I think it'll actually mean just 200 euro to the landlord.
It was meant to be 90% in 2019 but its 100% now. So interest of €4000 was to have 90% relief, that is €3600. Tax at say 50%, means tax bill of €1800.
Now, interest of €4000 has 100% relief, that is €4000. Tax at say 50%, means €400 more in deductible expenses resulting in €200 more for landlord.
People are making out like this is huge for landlords, its still fairly poor. What about LPT allowed as an expense? Reduce the tax on rental income???
Yeah, I was comparing the position for 2018 with the announced position for 2019 (I wasn’t comparing the announced position with the “what was meant to be” position).
I agree that this wasn’t a radical change and it seems nuts to me that LPT is not a deductible but expense. However, I do think this change will nudge the dial in favour of staying in the rental game for some l’lords.
Making rental income liable for prsi and USC meant landlords were required to increase rent by 21.7% just to maintain after tax income.
If the government removes this then as a landlord I will gladly reduced my rent by 21.7%. Have we a deal???
There are a lot more serious issues to prevent someone wanting to become a landlord than the tax relief in interest. I think there is not a chance that this measure has made letting more attractive. It's just looking service and not worth a damn.
If they did something significant to keep those in who are leaving them they might make a duffreence. It's just too fluid the last few years. Legislation changing with the wind. Nobody wants to put up with that kind of environment
You can never be too rich or too thin.
I'm willing to house 4 extra people right now if the government had actually done something practical. This 100% is a nonsense and won't incentivise anybody, not with the tax rates and the USC, and with all the horror stories at the PRTB.
I await the granny flat grant news to see if there is anything there to encourage landlords. Meanwhile I contacted an auctioneer two weeks ago about selling and spoke to my tenant of 7 years and told him I'm thinking of getting out.
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