Request advice from professional property investors

[landlord]

I currently have 5 properties, 1 of which is my home. My tax liability on the total rental income after mortgage interest, service charge etc….is 6,000 a year. The loans are all fixed for 2 years at 3.29%, so the 6,000 per year tax will remain approximately the same for 2 years. I am considering a section 23 property at 190,000 (stamp is 5,700 at 3%). I would guess that the premium on this property, because its section 23 is approx. 30,000. I know that the full allowance for section 23 was extended till the end of this year and I am concerned that if I delay purchasing this or a similar property that closer to the deadline, the premium on these tax incentive properties will spiral up. I have calculated that the rent will just about cover the interest only mortgage after service charge. So is it worth the premium for this section 23 property?
Thanks !!!!

 

[Frank8211]

This thread to a Revenue leaflet might be helpful

[broken link removed]

I think you need ot work out the amount of the purchase price that is tax incentivised, work out 42% of that, deduct the answer from the purchase price and compare with other similar properties to see if a section 23 is good value or not.

 

[markowitzman]

I would buy sec 23 in your situation and possibly a more expensive one to get greater relief.
In the current climate maybe a sale and leaseback job might work.
I bought one (holiday home scheme) where the promoters buy it back at year 10 so am only buying the relief but without the risk of being stuck with it but with the downside of no potential capital appreciation in the interim. However I wonder whether there would be much potential for capital appreciation on a sec 23 in 10 years?