Section 23 in Ballymun or Tallaght

B

Butter

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Hi all,
I'm looking for some opinions here on behalf of my parents. They are contemplating buying a section 23 apartment in Tallaght or Ballymun and have asked my opinion on the areas. I have never lived in either of the areas so I'm looking for some feedback from people who do have some idea about the pros and cons of each. Also section 23 - good idea or bad? They do have other rental income in the state.
 
Not sure whether this still holds true but I remember hearing that when the regenerate of Ballymun started that the health board were not allowed to pay the rents on the new houses/flats.

The idea was to create a more mixed neighbourhood. This would bring the area up so that it wouldn't remain a welfare desert which is what it was at the time.
 
Usually with Section 23's, the price of the tax break is built into the price of the property.
 
Marg said:
Hi all,
I'm looking for some opinions here on behalf of my parents. They are contemplating buying a section 23 apartment in Tallaght or Ballymun and have asked my opinion on the areas. I have never lived in either of the areas so I'm looking for some feedback from people who do have some idea about the pros and cons of each. Also section 23 - good idea or bad? They do have other rental income in the state.
Click to expand...

Section 23 are no use to your parents unless they have a lot of other rental properties in the state. What you are buying is a tax break to shelter taxable rental income. If you have none then you will never be able to use it-unless of course they plan to buy with out any borowings.

With the high prices of these properties and increasing interest rates , flat rents I see no way that anyone can benefit from a sec 23 unless they have massive rental profits already. I believe that section 23 have been mis sold by EA's-especially those that were also offereing purchasers almost 100% finance on them through associated mortgage companies! They have to know wha they are selling will be of little use in the short to medium term to most small investors. The majority of people that have bought them are only scratching the surface of the tax break, when all oter allowable expenses are deducted. In other words the break is not being used to the extent that the purchser was led to believe. There again it is buyer beware...!

My advice is for them to buy a standard property preferably away from where there are lots of sec 23, These will not be priced up like sec 23's are.
 
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Hi all,
Thanks for the replies. My thoughts are pretty much with your Luternau. Will have to have a chat with the parents!
 
Well, if you have 1.5 times the rent of the property coming from another property that is paid off, it is probably worth doing.

For my money, the Mun is a better deal. But it's all about what you're comfortable with.
 
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