Buy to Let

Are you looking to buy an Investment property? Have you a current investment property? And are looking to release equity on an existing rental property? Did you know you can buy an investment property though your pension? What are the key considerations when taking on an investment property?

If you’re thinking of entering property investment, here are some key things you should think about: Understand the rental market in your target area – for example, do a bit of research to identify typical renters (students, families, etc.), the most attractive property for rental purposes (apartments, houses, 2 beds or 3 beds, etc.), the average rental amount and the average time to letting when vacant. All of these questions can be answered by your local Estate Agent who can help guide you in your choice of property investment. Our sister company DNG Murphy Condon can be of great assistance to you.

Pension purchases of property at an arm’s length agreement are growing in popularity, Rent is free of all taxes and the property can be sold CGT ( Capital gains tax ) free by your pension scheme , Strict rules apply on a 50% Loan to value with a max of a 15 year term – click here for more info.

Plan to run your venture like a business and keep careful record of your finances. It’s a good idea to open a separate bank account for your rental property income and outgoings so that you can manage your finances closely. If possible get your rent paid by standing order into the account and keep accurate records of your property income and expenses including all receipts.

Make sure you make your tax return every year. Rental income is liable to income tax, PRSI and Universal Social Charge (USC) but you are allowed to offset certain expenses against your income tax. Our sister company TAXBACKNOW.IE will help you understand the tax implications.

Key features of Buy-to Let Mortgage:

● 10-year interest only option
● 20-year capital and repayment option
● Rates are generally 0.5%-1% higher than residential mortgages
● Loans for Individuals and Companies.
● Loans up to 70% LTV
● Min loan size €40,000- max loan size €1.25m
● Terms from 5 to 20 years
● Min property value €80,000 with no max property value