80k is it worth buying investment apartment

riclad

MY sister has 100k ,she is thinking of buying a 2bed apartment as an investment .
cost 70-75k.
or maybe a 1 bed apartment in dublin .for 100k.

She got a legacy ,now has 100k approx in her bank account.

she is 53, no loans, married .lives in 4 bed house.1200 sq ft.
no mortgage.
her income is 14-20k approx per year.
she owes maybe 1000 euro on a credit card .
she pays every bill ,within 2 weeks of getting it.
I understand she will have to pay property tax,
20 per cent tax on rental income .

Any advice on this choice would be good.

Or would she be better off just putting the 100k into a long term deposit account .

i presume the fee,s for an accountant, and leasing agent can be claimed as tax credits .
her main expense is food, and petrol ,house insurance .property tax on the house.
she owns a ford focus car .
she has debts of 1000 euro or less .

3 of her relatives are full time landlords in dublin , the uk ,the usa .

markpb

The biggest taxable deduction for most landlords is the interest on the mortgage used to buy the property. If that's not applicable, the income tax bills on a rental property would be pretty painful.

To counter that, she has a low PAYE income so at least part of her IT would be at 20%.

godtabh

Not worth the hassle

riclad

so the tax,s she pays would be like 50-60 per cent ?

my other sister has a 3bed house, rents it out as she lives in the us .
she pays agent,accountant to look after it,
only charges like 600 per month rent .
maybe there,l l be lower tax rates for ra landlords in the future ,
if you rent to a rent allowance client on the ras scheme for 3 year ,long term rental .
she pays very little tax, works 3 days a week.

Mrs OBumble

What pension provision has she got? Talk to a financial advisor for proper investment advice.

Property may be a good option if she prepared to do the hard work but there are far easier options.

riclad

She has no pension as far as i know,
but 100k in the bank, owns house worth 300k.
i told her just put 80k in a long term deposit account .put
20k in a current account .
her expenses are low ,apart from insurance,property tax .
house has 3 acres of land around it .
she picks out a 2bed unit, hires accountant, property agent ,
maybe gets a long term ras council tenant ,
not much work involved .


my friend went to financial expert ,in 2010
was told to get a pension,
get tax credits on pension.
he pays 2k tax per year.self employed .

i told him just pay off your mortgage,
he sees no point in getting a pension.