Right figures for renting out my house?

G

GetMoving

Registered User
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Hi,

I am thinking of renting out my PPR (a three bed in Dublin 12) and want to know are my rough calculations below correct:
Mortgage of €258k (ECB+.79 (NIB), 25 year term)

Monthly repayments €1,150 (interest €400 capital €750)

Expected monthly rent €1,000

Taxable rental income €700 (total income of €1,000 less allowable expenses €300 (75% of interest))

Tax to be paid on rental income each month €294 (42% of €700)

Shortfall between after-tax rental income and mort repayments €444
​
Thanks GM
 
Apart from the interest there are other allowable expenses, see here;

http://www.revenue.ie/en/tax/it/leaflets/it70.html


My NIB tracker T&C’s state the property must remain my PPR for the life of the loan, if not they reserve the right to convert it to their investment home loan rate.

If you are currently paying 1.79%, Nib’s investment rate is 4.15%, a hell of a jump (2.36%).
 
So these new rough sums would then apply???

Mortgage of €258k (4.15% (NIB Invest Rate), 25 year term)

Monthly repayments €1,400 (interest €900 capital €500)

Expected monthly rent €1,000

Taxable rental income €334 (total income of €1,000 less allowable expenses €666 (75% of interest))

Tax to be paid on rental income each month €140 (42% of €334)

Shortfall between after-tax rental income and mort repayments €540
 
It's not as simple as that.

Tenancy must be registered with PRTB, to claim the interest relief, there are other allowable expenses, letting fees, insurance, PRTB, wear + tear, maintenance, mortgage protection and others.

There are also expenses that are not allowed, NPPR is one.

You would also loose any TRS you might currently be getting.

Example Rent Account can also be found here;

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section19
 
Thanks for that.

I had taken into account that I will lose my TRS.

I see that the NPPR tax is expected to rise from the current €200 level also.

If I can use the house insurance (€700), mortgage protection (€600), BER certification (€250) and possibly letting fees as discountable expenses, this should be good news for the overall difference between rental income and mortgage repayments I'll have to make up.

What are the current PRTB costs?

Tnx
 
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