Moneymakeover Next Steps - Looking at BTL , looking for advice and opinions

moneymakeover said:
You are currently on the high rate?
Not sure if you are saying your wife is not working?
Click to expand...
i am on the high rate yes and my wife doesnt work no - shes currently claiming Homecarer tax credits.

we would be hoping to clear the mortgage in 5 to 7 years and were even considering buying the property with a family member and putting up half each

as you said i was looking at it as a long term investment
 
moneymakeover said:
You are joint assessed currently? Any extra income you get will of course be taxed at the high rate
Click to expand...

Is this correct?

For a married couple with only one income, €53,000 is taxed at 20%
This increases up to €88,000 if the wife has income of her own.

So if the OP makes a rental profit of €5,000 a year in her name, it will be taxed at 20% rather than 40%.

The difference is a saving of €1,000 in tax which should not affect the overall decision on whether to invest in property or not.
 
jim said:
Quick google of LTL scheme says:

The Local Authority acts as the landlord to tenants, while the property owner manages and maintains the properties
Click to expand...
we are looking at the Standard Long Term lease 10-25years - we would have to insure and be responsible for the structure

Under standard long-term leasing, property owners:

  • receive payments regardless of vacancy periods
  • are paid up to 80/85% of the open market rent (depending on management service charge)
  • have no rent collection or rent arrears obligations
  • do not have to register with the Residential Tenancies Board (RTB)
  • retain responsibility for the structure and keep the property insured
The local authority is landlord to the tenant and is responsible for day-to-day maintenance. Rent is reviewed on the third anniversary of the commencement date of the lease by reference to the Harmonised Index of Consumer Prices (HICP), and every third year thereafter.
 
Some AAM, regular users, are quite rightly cautious about property investment. It comes across, to me, as anger or a bad attitude at times. Thats theyre perogative.

In my view each case is different and in some cases it might make sense as an investment. Like all investments its a question of risk/return.

If you can find a well priced property in a good area with good potential for capital appreciation and if you can lock in guaranteed rent with CoCo then it may just be a good investment. But needs to be assessed in context of ones overall financial position (pension etc). Tax is also key to consider re married couple.

If the different components stack up then go for it.

Property has burned some people but has been a magnificent investment for others.
 
Last edited:
I wrote to Revenue in the past regarding the dividing up of rental income when a couple are jointly assessed.
They confirmed with me the rental Income can be divided up between the 2 people in a way that best suit them.
So doesnt need to be a 50:50 split.

The lower earning spouse can therefore take more of the rental income.
 
You must log in or register to reply here.
Back
Top