How To Buy An Investment Property In IrelandđĄ
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- Äas pĆidĂĄn 13. 12. 2020
- In this video I explain how to buy an investment property in Ireland!
Property is a great investment for anyone to make and in this video I will give you a step by step walkthrough of the investment property buying process.
Visit my website www.askpaul.ie to have a chat with one of the team or message me on Instagram @askpaul_now with any questions you might have!
Have any more questions regarding investment properties? Leave them down below âŹïž
Hey Paul can you do a video on paying tax on investments i.e shares/ETFs what does the revenue take how to pay them and is there a certain amount you can earn on capital gains tax before paying tax its just hard to find real info for Irish investors.
Hi what about setting up a company to manage your investment properties and the potential benefits regarding business expenses etc that can be gained?
How do you invest in REITs and what are the tax implications?
My son is moving to dublin.. we are looking to selling property and investing there. Question: For a u$d 300k investment in a Dublin property what cd be the expected return on such investment handling it via a property management company or without it? ⊠in this latter case my son will handle all issues related maintainence but will need prof support for marketing/contract/taxes etcétera.. what return on such investment cd be expected?
I discovered your channel tomight I'm so glad
Definitely making sense there đ
Having bought a number of investment properties over the last 15 years, I would advise anyone thinking of buying to let DONT it's not worth the hassle, tenants not paying the rent, damages, PRTB are pro tenant and useless most of the time. The word Landlord is taboo in this country I don't think we ever got over the famine.
Yes I have used managment companies made no difference still had trouble with tenants, some people in this country seem to think that we owe them something and that its all right to stop paying rent.
If you have money to invest look outside the property market as it will just cause you stress and heartache.
@Itzdebbieawooo I mean rent is expensive right now so people blame landlords for it
Its so sad, you get punished for doing good in life
I second that got out of that game and started enjoying life
Tax and bank are paid first then you get the grief
In one word . Donât , donât , donât . Itâs a nightmare . Do not buy an investment property in Ireland as a small Landlord .
great video thanks
Hey Paul, great video. How would the taxes work out for an Irish national who lives and works outside of Ireland? What are the need-to-know things for someone in this situation?
Hi Paul/Team
Guys, As, hopefully a cash buyer, What tax obligations am I exposing myself too when buying a second property? Looking at the standard Stamp duty and property tax but besides those what other taxes am I looking at?
Suppose I have no intention on renting the property out for now. I, for now, just want to buy the second home. What taxes will I be hit with.
As always, keep the videos and content coming.
Thanks a lot
You forgot about the tax benefit on the interest which reduces tax..
If you need to save the 50% - since that would be an extra 20% down - Say 50k of a 250k apartment. Would you not be worse off because that 50k was about 100 grand of pre tax income. You effectively are paying 50 grand tax (PAYE, PRSI, USC) in order to save that extra 20% - if you say the cost is 60k over the 30 year period, it's basically offset anyway by the money you would have to have saved, and you're now able to buy 5 years earlier (since it could take someone 5 years to save 50k)
I could be off there, but saving down 50% of a property, especially if it's a first property (you haven't made gains from elsewhere yet) ,it seems unrealistic.
Thanks for the video though I'm more pessimistic about the timing rather wait a few years until the world settles down if it does again..
Another way to bypass the high tax on rental propertys , set up a buisness Co and declare property as part of the assets , 12-15% tax then
Spoke to an Irish accountant recently and he burst my bubble and said that's not the case in Ireland - all rental income is taxed around the 40% even if it's bought and owned by your company.
Edit: Oh and maintenance costs of the most basic structure of business would be around 2000eur annually.
Hey Paul, great video, what if you wanted to build a portfolio of properties as a business? Do you register the business and give the business the loan from your personal funds, ie a director's loan and get a business mortgage with the idea that any profits coming in would then be going towards funding additional properties as opposed to taking an income personally?
Hi Damien, managed to find something usefull regarding to this topic? I'm at the same boat, would like to hear from you
We need an updated video please
Good counsel (not council)
Hi there, do you know if it's possible to get a mortgage to let without already having a mortgage?
Just stumbled across your video, I never knew you would have to pay tax on the entire rental income before expenses. I live overseas and have been renting out my house the past 8 years, should I have been paying tax on the income or am.I exempt due to being a tax resident in a different country??
Hi Paul. Pretend youâre on a decent salary 50k Ireland . And aim for 3 propertyâs like you said. You start saving early 20s. If you manage to get 50% deposit (say 120k for 240k 2/3 bed house/apartment) 120k takes long time to save. You still live at home. You rent out at 1800 to pay smaller 900 mortgage over 20 years. So you split even or take a loss whenever property needs upgrading. Because you took so long to save 120k (15k a year would take 8 years) youâre now nearly 30 and still living at home with parents? Will take another 8 years to save for second property and then youâd still be living at home if you went ahead with this to buy the second property? Whatâs your opinion on what Iâm saying? Is it not very tough to get 3 propertyâs and then also youre going to want to buy a home for yourself? Itâs good to save while young but you also donât want to save meticulously for 20-30years to have a passive income of 3k when your in your 60s. Just asking because I want to get into property but trying to be realistic about it. Hopefully hear back from you thanks
Hi Paul. Would it be ok if i invite you as my guess in an online event? Any time that suits you
Wow, buy to let in Ireland is hard to get into for the average investor leaving a big gap for the big pension funds.
How many properties is that now? Over how many years? And savings and pensions by 65? Rrrrriiiight.
If your on disability benefit and own your own home and receive compensation money from the court can you invest this in property without it effecting your pension.
Does the income tax have to be paid before the mortgage repayment? As in is there no way to claim back some of the income tax paid because itâs for an investment property?
I think you are able to claim back the interest paid on the mortgage
You pay the tax at the end of each year . You don't get any tax back .
You will have to subsidise this investment by approximately 4 to 5 thousand per year
In your example of 1800 rent, 1200 mortgage. Wouldnât there be the ability to write off some of the mortgage interest against the rent before tax is calculated? I thought I read somewhere a couple of years ago that the % of the interest allowable as a tax write off was increasing , from 75% a few years ago towards 90 or even 100% over a number of years.... Was there a u-turn done on this or was I misinformed?
Pretty sure from 2019 onwards you can take a deduction for 100% deduction for the interest
You can deduct the interest on mortgages used to purchase, improve or repair rented residential property when working out your rental income for tax purposes.
You must show that you have registered all tenancies in the property with the Residential Tenancies Board (RTB). Interest can only be deducted during the period in which the property is let.
The amount of interest you can deduct on these mortgages has increased in recent years:
Prior to 2017, it was 75% of the interest
In 2017, it was 80% of the interest
In 2018, it was 85% of the interest
From January 2019, it is 100% of the interest
Edit: as according to official data. Can t recall exactly revenue or gov. Ie
But if I have only 30%?
You donât just pay tax on the profit made no? Youâre paying tax on the full rent?
No you pay tax and won't make a profit , you usually would usually have to pay a extra 5 thousand per property out of your own money after paying at least 3 to 4 thousand in fixing up the house ,furniture etc
no profit of there if you pay tax off your gross income! ridicul system for landlords
900 a month to the revenue on rental income of 1800.... you need to quit this game. You might have mentioned the 75% interest relief plus the many many expenses which are deductible
Also the landlord will have to pay the
Rtb .
Usc.
Public liability insurance .
House tax ( which can't be wrote of ) .
How would you invest 1 million euros
safest (in my humble opinion) bet would be the S&P 500 as it has a yearly yield of 8-10 % interest , with dividends being reinvested compounding the interest, I am not a financial adviser but if you CZcams warren buffet S&P 500 that is exactly what he would say,,,,, I'm trying to make my first âŹ1m with riskier plays hahah just under 50K so far but my heart last few days has been in my mouth as its crazy times
@@christysadlier 100% thats what I would do, you'd never have to touch the principle. But yeah have to take on a bit of risk to get that initial capital to grow to anything meaningful :)
@Big_SeĂĄn dogecoin for a bigger buzz
@@christysadlier
broadly I agree with that Chris.
Though as always, investment advice requires a few further exploratory questions. Like âŠ.
What other assets does someone have
Is one million their total reserve
What age are they
Dependents
Etc
Etc
@@christysadlier not a great idea if you live in Ireland with exit tax at 41% and deemed disposal after 8 yrs for ucit index funds.
awful advice...
Can you mortgage 2 properties at once?