Tax Treatment of Landlords has to be Revisited

Status
Not open for further replies.
In my view a good proportion of landlords leaving the market is the result of a natural cycle. Buy to let mortgages first became available in the early 1990s and the private rented sector expanded dramatically as a result. Many landlords have paid off their mortgages and are reaching retirement. Others kept homes which were in negative equity after the crash in 2007 and rented them out to enable them move to larger houses and now those mortgages are out of negative equity and the owners want to sell up.

I also think the main issue which is prompting them to sell now, as opposed to an a couple of years time, or just something they plan to do at some stage in the future, is the current eviction ban and the prospect of lifetime tenancies being introduced by a future Sinn Féin government. So landlords are thinking 'I'd better sell up asap, I can't afford to wait'.

So in that context I think a tax break will have limited impact on keeping landlords in the market, unless it is super generous which in the current political climate would be impossible.
 
Well if the "current political climate" is causing untold misery and hardship to large numbers of people, isn't it time to change it? For starters, the State should defund the vast cast of NGO and media bodies that perpetuate it.
 
So summary.
Leave all as is and over the next three years another 49000 small landlords will be gone.
This is not a problem anyone who cant buy a house will be allocated a free house by then, Nooooooooo.
 
Not sure whose summary that is.

My view is "Don't fiddle around with minor tax changes. Fix the bigger issues first - dealing with non-payers and give a commitment that property investors will not be prevented from selling their investment when they want to after giving appropriate notice to the tenant."

Brendan
 
Brendan Burgess said:
Not sure whose summary that is.

My view is "Don't fiddle around with minor tax changes. Fix the bigger issues first - dealing with non-payers and give a commitment that property investors will not be prevented from selling their investment when they want to after giving appropriate notice to the tenant."

Brendan
Click to expand...
This is never going to happen.
 
Brendan Burgess said:
My view is "Don't fiddle around with minor tax changes. Fix the bigger issues first - dealing with non-payers and give a commitment that property investors will not be prevented from selling their investment when they want to after giving appropriate notice to the tenant."
Click to expand...
Unless the above is addressed, IMO, the current situation will get worse. Also, any potential new entrants to the rental market will invest elsewhere
 
I read that the private rented sector makes up 20% of all households in Ireland(50% in Europe).Small landlords(1-2 properties) make up 53% of private rented sector and that 79% of tenants and 88% of landlords have had a positive experience(RTB).These numbers are not insignificant in the overall context of Irish housing stock.My point is this-we could debate the fairness of the Tax system ad infinitum and probably not agree in the end but we elect a Government to engineer our way around issues and stop looking over their shoulders at some Populist menace who doubtfully will have the support to form a Government .The Government should avoid meddling with Property Rights and incentivise small landlords to help us all resolve this housing issue
 
triggs said:
I read that the private rented sector makes up 20% of all households in Ireland(50% in Europe).
Click to expand...
This is true perhaps in Berlin which is an outlier for Germany.

Otherwise in Europe ownership rates are roughly the same as Ireland.

Where Ireland is unusual is having a very low share of apartments.
 
there are loads of isses here and unfortunately, the government is doing nothing on any of the issues.

You have the RTB that isn't fit for purpose. It can even handle registrations. Its too slow dealing with complaints and is very poor at enforcement.
You have accidential landlords who want out.
You have tenants with nowhere to go.
You have house prices at a level that allows most accidential landlord to now get out.
You have landlords waiting years to get a non-paying tenant out.
You have non-paying tenants leaving tens of thousands of debt behind with no recourse to the landlord and no enforcement to repay same.
You have landlords who didn't increase rent for years and are now stuck with below rent rates indefintely.
You have ECB interest rates raising rapidly and no corresponding increases in rent, thus driving more landlords out of the market.
You have taxation system @ 52% that isn't fair on all landlord types in the market. Some pay that, others pay a lot less and closer to zero for some.
You have the threat of tenancies of indefinite duration thus severly reducing the value of such assets. Again driving my landlords out.
You have government meddling with temporary RPZ for the last 6 years and here forever more.
You have government introducing eviction bans cause it's winter, yet no change in anything for springtime when evictions can recommence (hopefully!)
 
What about USC?

The Universal Social Charge (USC) is a tax payable on gross income
So if I have 100k of income (including say 30k rental income) I pay USC on entire 100k despite the fact I might have zero net income!

The purpose of government and tax policy is to tweak tax policy to address issues such as social issues eg homelessness
That's why landlords should get additional relief.
Just like big funds get relief to build apartments.
 
moneymakeover said:
What about USC?

The Universal Social Charge (USC) is a tax payable on gross income
So if I have 100k of income (including say 30k rental income) I pay USC on entire 100k despite the fact I might have zero net income!

The purpose of government and tax policy is to tweak tax policy to address issues such as social issues eg homelessness
That's why landlords should get additional relief.
Just like big funds get relief to build apartments.
Click to expand...
You make great points but sorry, your last sentence is nonsense.
 
Knuttell said:
I wasn't aware I couldn't claim on replacing such items as washing machines etc, what am I missing?
Click to expand...
Nothing, He's talking through his behind.

Especially this bit.
“It could be white goods and those type of things like your fridges, your cookers, all those type of things that previously you were allowed to write that off against tax but you’re not now.”
Click to expand...

My guess is that someone misbriefed him for the craic.
 
Knuttell said:
Tax relief for landlords on fridges in bid to halt exodus from rental market

www.independent.ie

Tax relief for landlords on fridges in bid to halt exodus from rental market

Landlords will be able to write off the cost of purchasing cookers, fridges and washing machines against tax under plans considered by government.
www.independent.ie www.independent.ie


I wasn't aware I couldn't claim on replacing such items as washing machines etc, what am I missing?
Click to expand...
It appears you would be able to claim the full amount of the cost as opposed to a capital allowance over 8 years etc. that would be my view, its the same pie but you are slicing it differently...
 
Status
Not open for further replies.
Back
Top