Budget 2018 for property market

handlemaster

Will have to see what comes but any suggestions on what should be put in ?

I think an incentive for private investors to rent to rent supplement tentants such as tax reduction.

Hollister11

Tax relief for landlords
Incentives for developers to build.

Claw Hammer

Vat on rents.

VonBeanie

Claw Hammer wrote: »

Vat on rents.

LOL - That will really help the rental market. Do you want to see a 13.5% rent increase or a 23% increase.

david75

The cranes are back up. The height restriction has been dropped.

Another crash worse than the last one in about three years.

Wanderer78

david75 wrote:

Another crash worse than the last one in about three years.

Next crash on the way alright, but shur God only knows the details of what, when, where and how

steddyeddy

Maybe further rent caps in line with inflation.

Incentives for developers.

Claw Hammer

VonBeanie wrote: »

LOL - That will really help the rental market. Do you want to see a 13.5% rent increase or a 23% increase.

23%. Landlords will then be able to claim back VAT on inputs.

VonBeanie

- Drop the Help 2 Buy Scheme
- Reduce VAT on Residential Development
- Tax on undeveloped zoned land
- Allow 100% of mortgage interest as an expense for Landlords
- Allow accidental landlords use rent paid for their home as an expense against rent earned on the house the own
- Allow 14k rent a room scheme apply to single property landlords

VonBeanie

Claw Hammer wrote: »

23%. Landlords will then be able to claim back VAT on inputs.

The largest landlord expense is mortgage interest, and that's VAT exempt so no input tax. Any VAT on rent would go straight onto the cost of renting for tenants.

__..__

Allow landlords who are getting out of the market due to being stuck below market rent to get back in by allowing them to charge market rate.
That among all the other issues that landlords face now.
Couldnt give a sh1t about mortgage interest relief.

__..__

VonBeanie wrote: »

The largest landlord expense is mortgage interest, and that's VAT exempt so no input tax. Any VAT on rent would go straight onto the cost of renting for tenants.

No it wont. In an RPZ you arent aloud to pass on costs, hence the flight of the landlord now before it gets any worse.

Hack12

Rent has increased due to Government interference in the past. Facts are they drove up the cost of rent by
- Mortgage interest is only deductable at 80% since this year. It has been 75% previous but pre crash was 100%.
- LPT is added to rent whether people like it or not
- Tenants want more rights etc so more registration and compliance hence hire cost.
- RTB fees
- Private landlords are taxed at there effective tax rates rather than a corporate tax rate which vulture funds etc can get a LTD company.
- Easier to evict trouble tenats etc

Wheter we like it renting is a business and it has to be treated like one for the benefit of both parties. In the "boom" I rented a property for €1,100 and I am getting €1,300 for it now but I can honestly say I was making a profit with €1,100 and a loss at €1,300 due to all the government interference in the market.

Wanderer78

Hack12 wrote: »

Rent has increased due to Government interference in the past. Facts are they drove up the cost of rent by
- Mortgage interest is only deductable at 80% since this year. It has been 75% previous but pre crash was 100%.
- LPT is added to rent whether people like it or not
- Tenants want more rights etc so more registration and compliance hence hire cost.
- RTB fees
- Private landlords are taxed at there effective tax rates rather than a corporate tax rate which vulture funds etc can get a LTD company.
- Easier to evict trouble tenats etc

Wheter we like it renting is a business and it has to be treated like one for the benefit of both parties. In the "boom" I rented a property for €1,100 and I am getting €1,300 for it now but I can honestly say I was making a profit with €1,100 and a loss at €1,300 due to all the government interference in the market.

we seriously need to move on from this construct we call 'the market', as its not particularly 'efficient' at providing us with our needs

__..__

Wanderer78 wrote: »

we seriously need to move on from this construct we call 'the market', as its not particularly 'efficient' at providing us with our needs

It's certainly not a market now anyway. Not with rent control.

VonBeanie

Wanderer78 wrote: »

we seriously need to move on from this construct we call 'the market', as its not particularly 'efficient' at providing us with our needs

What should replace "the market". If you want a private rented sector, you need landlords. To get landlords, there has to be a business model which makes for someone to become a landlord. If you increase the cost of being a landlord, and you increase the compliance burden, you cant be surprised when the number of rented properties declines and the cost of rent increases. This is an efficient market - its just an efficient market nobody likes the look of.

Wanderer78

__..__ wrote: »

It's certainly not a market now anyway. Not with rent control.

VonBeanie wrote: »

What should replace "the market". If you want a private rented sector, you need landlords. To get landlords, there has to be a business model which makes for someone to become a landlord. If you increase the cost of being a landlord, and you increase the compliance burden, you cant be surprised when the number of rented properties declines and the cost of rent increases. This is an efficient market - its just an efficient market nobody likes the look of.

i do believe theres sufficient information now that shows the 'efficient market hypothesis' is a bust. what we move onto, who bloody knows, but first we must actually accept this, but shur that may never happen

Claw Hammer

VonBeanie wrote: »

The largest landlord expense is mortgage interest, and that's VAT exempt so no input tax. Any VAT on rent would go straight onto the cost of renting for tenants.

Rent would be forced down to allow for the payment of VAT. It is more likely that there would be maintenance and replacement of appliances if the VAT was deductible. It is win win for the tenants.

davindub

Claw Hammer wrote: »

Rent would be forced down to allow for the payment of VAT. It is more likely that there would be maintenance and replacement of appliances if the VAT was deductible. It is win win for the tenants.

Landlords can already elect to charge vat on rental income and reclaim the inputs.

Hack12

VAT is always passed onto the end user. It is viewed as Revenue money not the business. End user always pays for increases. Driving down the cost of business for landlords is whats needed.

VonBeanie

davindub wrote: »

Landlords can already elect to charge vat on rental income and reclaim the inputs.

As far as I know, the ability to waive VAT exemption only applies to commercial property. A residential landlord cant waive VAT exemption.

__..__

Hack12 wrote: »

VAT is always passed onto the end user. It is viewed as Revenue money not the business. End user always pays for increases. Driving down the cost of business for landlords is whats needed.

Except with rent control the end user doesn't pay for increased expenses.

davindub

VonBeanie wrote: »

As far as I know, the ability to waive VAT exemption only applies to commercial property. A residential landlord cant waive VAT exemption.

Actually you are right, it cannot be done for residential.

OwlsZat

VonBeanie wrote: »

davindub wrote: »

Landlords can already elect to charge vat on rental income and reclaim the inputs.

As far as I know, the ability to waive VAT exemption only applies to commercial property.  A residential landlord cant waive VAT exemption.

We need to correct the ratio of office builds to residential projects. While having office space is clever given the Brexit, it appears for many relocating is prohibited by a limited housing market.

Hollister11

david75 wrote: »

The cranes are back up. The height restriction has been dropped.

Another crash worse than the last one in about three years.

Of course, it's going to crash. But the conditions aren't there for a market to crash.

Wesser

Incentives to get vacant properties back up.and running.

Hollister11

Wesser wrote: »

Incentives to get vacant properties back up.and running.

They made a start to gather the data anyway. https://vacanthomes.ie/

kingbhome

david75 wrote: »

The cranes are back up. The height restriction has been dropped.

Another crash worse than the last one in about three years.

Another crash, sure things havent even picked up properly all over the country.

L1011

There's a suggestion that stamp duty will be increased to fund the give-away FF are demanding; which won't make purchasing any cheaper for anyone. I suspect there'll be some form of incentives for repairing derelict over-premises flats in town centres but these existed before and were rarely taken up.

awec

L1011 wrote: »

There's a suggestion that stamp duty will be increased to fund the give-away FF are demanding; which won't make purchasing any cheaper for anyone. I suspect there'll be some form of incentives for repairing derelict over-premises flats in town centres but these existed before and were rarely taken up.

Stamp duty on commercials, not residentials (based on what I read this morning anyway).

awec

Hollister11 wrote: »

Tax relief for landlords
Incentives for developers to build.

Would be political suicide for any party to give landlords tax breaks in the current climate. Ultimately it would make no difference to the supply of property, no difference to rent rates and would just put more money in landlords pockets.

Landlords can dream on.