paddytheape
Registered User
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- 31
For the hassle of filling in tax forms and paying CGT when selling in the future,
Is BTL worth the hassle? (House purchase originally intended for a sibling but circumstances have changed, is it worth following through on purchase as an investment)
25 year buy to let mortgage 56k, 70% ltv, 5.05%: Repayments 4200/year plus say 1500 expenses (House Insurance, PRTB, NPPR, lpt, maintanence )=say 6k/yr.
Expected income 500 month x 12 =6k year. Tax due each year 1.5K, Capital off mortgage at end year 1 = 1500. Potential problem with attic roof supports and small flat roof repair, otherwise small cottage in great location, rentable @ 500/month
For the hassle of filling in tax forms and paying CGT when selling in the future, is this a good use of my 30% dep, namely 25K which would probably be better spent putting a roof and windows on my own house (50K mortgage left, value 150k) TIA, Paddy
.... I certainly don't think that an €80k property earning €6k a year in rent could be worth all the hassle and risk, unless there was some extraordinary potential for capital gains.
Brendan
Is BTL worth the hassle? (House purchase originally intended for a sibling but circumstances have changed, is it worth following through on purchase as an investment)
25 year buy to let mortgage 56k, 70% ltv, 5.05%: Repayments 4200/year plus say 1500 expenses (House Insurance, PRTB, NPPR, lpt, maintanence )=say 6k/yr.
Expected income 500 month x 12 =6k year. Tax due each year 1.5K, Capital off mortgage at end year 1 = 1500. Potential problem with attic roof supports and small flat roof repair, otherwise small cottage in great location, rentable @ 500/month
For the hassle of filling in tax forms and paying CGT when selling in the future, is this a good use of my 30% dep, namely 25K which would probably be better spent putting a roof and windows on my own house (50K mortgage left, value 150k) TIA, Paddy
Thanks for the replies. She thought it would be better to give it to the council at a reduced rent so she would not have to pay too much tax at the higher rate. She has a solid pension & the house is an investment for us. I do not know much about other investments in Ireland. She tells me the entry fee, service charges, commissions & taxes are through the roof which is why she thought buying an old council house to let back to the council may work. Any other comments or suggestions would be greatly appreciated. She is trying to reduce taxes. I'm not investment savvy. Thanks Laoisa
T McGibney +1 I still find it astonishing that people are thinking along those lines.
My advice would be to just rent it for free, then you get the bonus of not having to pay any tax!!
Thanks, you can see neither of us is too smart when it comes to what to do with money. We are used to trying to find it not what to do with it. I wish she could use internet & explain it all. I agree that normal rent would be better return, What I'm not sure of is if it's better to plough the cash into a house or an investment company like bank of Ireland private or Zurich or Irish life. She does not need the cash for a few years. It's her security for her old age. Any suggestion where it could do better then buying this house? Cheers Laoisa
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