Section 23, Section 50 - what does it all mean??

sailorfoley

Hey,

i've seen a few ad's for home's saying that the properties qualify for section 23 or section 50 (student accommodation). I've researched it and got all the legal terms etc, but in English, what do these "sections" actually mean for a property both short and long term?

Thanks.

Cantab.

sailorfoley wrote:

Hey,

i've seen a few ad's for home's saying that the properties qualify for section 23 or section 50 (student accommodation). I've researched it and got all the legal terms etc, but in English, what do these "sections" actually mean for a property both short and long term?

Thanks.

I'm sorry sir, but the boat has long left port.

godtabh

Cantab. wrote:

I'm sorry sir, but the boat has long left port.

Nice and helpfully as usual.

sailorfoley wrote:

Hey,

i've seen a few ad's for home's saying that the properties qualify for section 23 or section 50 (student accommodation). I've researched it and got all the legal terms etc, but in English, what do these "sections" actually mean for a property both short and long term?

Thanks.

Dont know if this helps.

As for section 50 its to do with students accommodation. Section 50 properties are Student Accommodation properties which also are allowed to be let out during the summer months as holiday homes. The relief you get is a write off of qualifying expenditure generally between 80 to 99% of the purchase price. Similar condition to what you may know as Section 23, i.e. must retain for 10 years, etc.

sailorfoley

thanks kearnsr for the link. the first paragraph is what i was looking for.

much appreciated. i.e. "dummies guide"

godtabh

Section 50 properties are Student Accommodation properties which also are allowed to be let out during the summer months as holiday homes. The relief you get is a write off of qualifying expenditure generally between 80 to 99% of the purchase price. Similar condition to what you may know as Section 23, i.e. must retain for 10 years, etc.

What they are saying is that you have qualifying expenditure of €280,000 which you can write off against Case V (Rental Income). This may just be the qualifying expenditure on the property, you may have additional captial allowance for Fixtures and Fittings. The €11,000 per annum guaranteed rent probably is gross rent - if this was net rent, then you would only use up €110,000 in 10 years so you probably would need to retain the property for a longer period or have other rental income to offset against. Check also is the €11k just the rental income over the 39 weeks (academic year).

Bit of advice on these types, check out the manageent agreement particularly for details of student deposits, damages,etc. A few clients have rued the day they bought one of these, the clients who do not have too many problems with them are the one where the management agreements covered everything and was managed actively.

On further googling I came across this

Victor

Hi
Do you have taxable rental income of €15,000 per annum.
Are you paying tax at the higher rate.
Do you want a rental guarantee for 5 years.

If you have answered yes to the above questions you should buy one of these apartments.

BANNED.

If you want to advertise, please contact an admin.