Longford

[markowitzman]

We have 3 bed semi in Longford let at 500pcm on a 12 month lease.
Tenants have just renewed for a further year now at 525pcm. Agent was amazed they accepted increase as she said rents were falling due to oversupply especially of section 23 in Longford. She reports huge amount of vacant properties. In a way I hope all the tax wheeze property stuff goes next year as properties are not being built to fulfill local need but rather to meet investor tax liabilities and in a place like longford this seems to be overdone completely imho.

 

[ClubMan]

In a way I hope all the tax wheeze property stuff goes next year as properties are not being built to fulfill local need but rather to meet investor tax liabilities

How are you that different to the section 23 investors in terms of fulfilling a local need by charging higher than prevailing (according to the estate agent) rents and and by (presumably) availing of normal investor tax reliefs? I'm not saying that there's anything wrong with any of this - you're in business and need to make the most of it and fair play to you - but I don't understand your seeming antipathy towards tax incentive schemes.

 

[markowitzman]

Prevailing rent is 600pcm and these are the ones that are vacant. No I always charge under market but 12 month lease to reduce vacancy. Reason I feel tax stuff needs to go is that I feel a lot of silly money is going into properties that have no chance of turning a monthly cashflow. I think one needs to think of investing in a profitable investment first and think of tax second. I would sooner buy a profitable property than saving tax on one losing me money. In many cases the real winner in the tax relief stuff is the builder as they add the relief to the price. Am I being fair in saying this?

 

[kirvos]

Passed through Longford town or Edgewardston (i thinK) in August/sept and behind the main street was a whole apartment block that seemed devoid of a single tenant. who bought this stuff? As for Sect 23, Hooke & MacDonald are now selling James Plunkett House apts in 'upmarket' Inchicore at incredible €420k for two beds! one beds are ONLY €365k. Two beds should be €280k (if even that) so developer has added in the 42pc tax relief ( used to market this stuff) in the sale price. YOu would need a lot of other rental income to make these sums work. Get out your tin hat - the day of reckoning is getting closer

 

[markowitzman]

Kirvos agree. Am actively looking for section 23/50. Fruitless task. Load of poor quality stuff in bad areas with inflated prices. Rental return very poor. Am thinking of just continuing buying property that stands up on its own feet without tax relief.