Hi, i'm presuming everyone has already notice this? Investing in rental property at the moment is not a lucrative venture. For e.g.
Rent: 12 months =
€12,000 per annum - €1,000 per month
Expenses:
Mortage interest (repayments 6,000) = €3,000
Costs:
Repairs, painting,PRTB, insurance = €2,000
Furniture F&F (€3,000) - lasts more than 1 year
Allowed only 12.3% € 375
Total: €5375
Taxable Income €6,625
TAX@40%/USC 8%
PRSI 4% = 52% - 3,455
2. simplified version of above:
Cash flow
rent : €12,000
Mortgage repayments: 6,000
including interest
cost of repairs etc., 2,000
furniture: 3,000
Tax USC/ PRSI 3,445
LPT: 200
Overspend: -€2645
I can see why most landlords do not invest in their rental property!
Rent: 12 months =
€12,000 per annum - €1,000 per month
Expenses:
Mortage interest (repayments 6,000) = €3,000
Costs:
Repairs, painting,PRTB, insurance = €2,000
Furniture F&F (€3,000) - lasts more than 1 year
Allowed only 12.3% € 375
Total: €5375
Taxable Income €6,625
TAX@40%/USC 8%
PRSI 4% = 52% - 3,455
2. simplified version of above:
Cash flow
rent : €12,000
Mortgage repayments: 6,000
including interest
cost of repairs etc., 2,000
furniture: 3,000
Tax USC/ PRSI 3,445
LPT: 200
Overspend: -€2645
I can see why most landlords do not invest in their rental property!