Tax Treatment of Landlords has to be Revisited

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This would actually work (14k tax break) but guarantee they will fudge it completely reducing it to 50% reduction in property tax in exchange for a 400 year lease.

€14,000 tax breaks for landlords considered in return for eviction ban extension

‘Heartless’ – Green TD Neasa Hourigan hits out at Taoiseach and her own party over decision to end eviction ban

A Government TD has warned that a decision to lift the winter ban on evictions at the end of this month will result in large numbers of people becoming homeless, saying it was putting the interests of landlords ahead of ordinary people.
www.independent.ie
 
Let's see what the proposal actually is. Currently, a homeowner could avail of both RAR and ARP (housing Ukrainian) with both tax free. Under RAR only, if you go above 14k, all is taxable. Such a cap won't work for a full property rental. A rent just under 1200 a month and you pay tax on all of it.
At last some hope of lateral thinking. If they get this right it may reduce the rents the funds can charge because private landlords can now compete on net rent (if they want).
That would mean a win for tenants, a win for private landlord and perhaps a win for those looking to buy a first home.
 
Win win all round. Some genius in government has realised that something that gives to tenants and landlords is better, than pooing all over landlords and expecting them to just take it.
 
Going to be a massive stampede of LLs exiting, they've already heard the jam tomorrow speech, tax breaks etc that fizzled to nothing.

This is classic Varadkar, big ballsy statements that grab headlines but come to nought.

Had they come out with a clearly defined outcome this evening then it would have been different....seems (on reading the article) they've fudged it again and kicked to touch.

The below is a bit concerning, would like to see the detail on exactly what they mean.


"The Cabinet will also discuss measures to help tenants buy their first homes and give housing agencies the first refusal on property sales in certain circumstances"
 
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I don't know how they can announce this and then not give any details on changes in tax treatment until sept which won't take effect until January 2024. Do they expect landlords to wait til September to hear what the plan is??? No they won't. They will use the next seven months to get out. Fast!
 
"Mr O'Brien will now bring a memo to Cabinet on Tuesday outlining plans to allow the ban lapse while also telling colleagues he will seek a significant budget package for renters and landlords."

This actually genuinely made me laugh...

he has not one clue on taxation of landlords....not one.

He's currently sitting at his desk with a box of crayons and a old envelope....he's sweating badly and he desperately wants to go to bed as its waaaay past his bedtime but he's been told he needs a memo for the morning.

He draws a picture of a family smiling outside their house, the sun shines. Yaaay that works.
 
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What a nice image you describe of the minister drawing images of happy people. A laugh befoe bedtime is always good.
 
Horse, door, bolted comes to mind. Some of the proposals in the report would probably work but how many LLs will have left before anything is implemented? How many LLs have left already?
 
All that for nothing... The most worrying thing is that they genuinely don't seem to know what they want to do. Extension of the ban announced (leaked I would imagine) then change of mind a couple of hours later. Changes seemingly planned for the budget, will that be before another eviction ban... Now sf seems to say that eviction bans are a bad idea! Seriously are they for real? I understand the situation is very difficult but this doesn't do any good!
 
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Even a 14k cap for property rental (assuming all taxable once over 14k) wouldn't be feasible for a lot of small landlords. If I was to drop the rent on our rental property to 14k, we would lose more than we normally pay in tax. And our rent is set far lower than most in the area. We are increasing it this year for the first time in 7 years.
 
Personally, short term I could slightly reduce the rent and benefit from it. But long term, if the rpz are maintained, it means I would just continue to undervalue my rent and property. And that would be an issue for me.
 
Are they seriously thinking that 14k (€1,167 pm)and no tax is going to encourage landlords to drop the rent And stay in the market?
A landlord could have been good and not increased the rents with a long term tenant, got caught with recession (labour dropping rent allowance overnight in half) and then rpz limits and now way under the going market rent. Then say market rent now is €2500. Grand for a one be apartment but not a 3 bed house.
Now try to sell the house with even lower rents! Landlords paying management fees and property tax that cannot be used to reduce the tax. Oh forgot we can claim a fridge cost.

We have a house up for sale, rent was €900 as we did not increase the rent as we were one of the reasonable landlords. House next door rents now for €2500. No landlord would even look at the property.
Government are making it worse not better.
I heard then an ad just on the radio if we would have a property to rent to a Ukrainian family there would be supports. Waste of tax payers money advertising.
 
Some good points raised here but a lot of pessimism.It seems eviction ban to cease(most posters here were totally sceptical).I consider it good news(if true).Taxation some good messaging on this,also good news,more detail needed-14000 per property or total for multiple properties?Regulation now there is the rub,I suspect more not less.I think posters here should focus on detail of Taxation measures and less on the political
 
Not wishing to go off topic but I cannot help thinking that a lot of investors maybe put off investing in rental property with all the chopping and changing / interference by Politicians over the the last few years. There is a need for some certainty over a 10 year period or so in order for a sustainable supply of rental properties. The lack of vision to give a reasonable degree of certainty will cause new entrants to avoid the housing market. There is a similar view being taken by private investors in England and Scotland. There needs to be a recognition that multi annual interference with the market by politicians and pressure groups will not lead to a sustainable supply of houses.
 
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