tax efficient property investment

S

sorue

Guest
Own own home worth €250K Mortgage €50K with TRS on it.

Buying app. For €300K plus costs = €340K

Borrowing €300K AT 3.1%APR or €6 per 1000 = €1,800per month over 20 years.

Projected rental income €600per month.



Any tips on how best to do this?



What is the best way to structure the mortgage so as to be tax efficient?

Should the €50K be paid off first and use the interest on the €300K loan against rental income?

Should I borrow some of the €300 as interest only so as to reduce the repayments and hope that the capital appreciation will cover the rest in 10-15 years time?

What sort of little inducements should I be looking for from the lending institutions?

Is there much differences between them?

What are the typical legal and other costs involved?

 
You seem to be down €1,200 per month on this investment? is your rental figure correct?
 
one bed with two clients for 9 months @ €400month each is €7200pa or 600per month
 
Your gross yield is 2.3%, you would require capital growth of 5% to break even. Thats a low yield even for Ireland, net initial may be close to 1.5%.
 
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