Landlords can deduct 100% of interest paid for tax purposes

PaxmanK said:

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 difference. It's just too fluid the last few years. Legislation changing with the wind. Nobody wants to put up with that kind of environment

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Precisely.

cliqueentour said:

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???

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Considering a large percentage of landlords currently have HAP tenants, this change is almost worthless.
Just a reminder....Landlords who house HAP tenants (for min 3 years) are currently allowed to offset 100% of mortgage interest against rental income.
At the time this was the only incentive for me in considering HAP tenants. With all the administrative hassle, cost and effort of bringing the property up to “inspection standard”, getting paid in areas rather than advance etc...why would a landlord now choose a HAP tenant over a working professional. There is now no taxable advantage.
Of course legally you can’t discriminate, however it’s the landlords choice as to whether he shows his property to perspective tenants who do not mention a work reference!!!

You also need a double deposit landlord - due to the rent being paid in arrears. That's what I did.

Bronte said:

You also need a double deposit landlord - due to the rent being paid in arrears. That's what I did.

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Agreed.

If my tenants hit the road, I’ll be looking for three months’ rent as a deposit.

Bronte said:

You also need a double deposit landlord - due to the rent being paid in arrears. That's what I did.

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Agreed.
I managed to get a double deposit on a couple of rental properties that started out on HAP.

What kind of returns make residential letting viable and does this measure increase the likelihood that there will be more residential investment or could it temper rent increases? Even marginally?

So just to be sure to be sure is this correct ....

Mortgage interest relief on rental properties ....
Tax year 2017 (filed in 2018) 80%

Tax year 2018 (filed in 2019) 85%

Tax year 2019 (filed in 2020) 100% (after the recent budget announcement)

For HAP tenants don’t forget to include and offset your lost interest after the three-year period.