1 investment property in Stillorgan/Renelagh Vs. 2 in Tallaght/clondalkin

Ranelagh.

Is a bank/lender agreeing to give you two mortgages? (in addition to your own house or maybe that’s paid off)

do you have a large deposit ? Might be better to buy one additional property in the area unlikely to lose value/demand

Depends what you are looking for. I would say buying 2 in Clondalkin/Tallagh will bring you more rent in total.

But if you plan at a later stage to use it for your family, buying one property in Stillorgin is better.

I don't think any of his proposed investments make you a landlord.

Have you done the sums? rental income is taxed as regular income, plus USC and PRSI; Property tax is non deductable. If you need any jobs done its almost impossible to get any tradesmen to provide a receipt - hence non deductable too. You will also have to pay capital gains tax if you sell up.

We have an investment property in Dublin 6W and honestly it costs us money; we are stuck in a RPZ but the tenants have been in the house for a long time and give us no grief so that is worth something.

Have you considered the associated risks, specifically;

1) Concentrating all of your investment in one small market (Dublin residential property), and

2) Leveraging your investment by borrowing, so a small loss on the overall value could potentially wipe out your entire capital.

This really doesn't amount to a whole lot, even with a sizable loan. The Govt did revert to this being deductable at 100% (was 75%). If your loan is 2k per month and the interest portion is €1,100, you can offset this (which would amount to €440); still not huge.

Just make sure you're not falling into this trap. There was a TD recently on the radio a while ago who thought that increasing interest rates didn't matter to landlords as they could deduct the interest as an expense. He totally misunderstood how the tax system actually works. All it does is reduce the LL's tax bill by the interest paid, times the % tax they pay. So the LL actually foots most of the rate increases.

Why would you expect someone else to pay your mortgage for you?

The principal part of your mortgage payment isn't a business expense. It's just you moving your own money around, reducing your debt to the bank with your own money.

DO NOT invest in residential property!! Ireland is a joke when it comes to landlords rights . Some scrote can rent your property, refuse to pay any rent whatsoever and it will take years to get them out if they know how to play the system. Meanwhile you will be paying legal fees for advice etc, the mortgage and will be still financially liable for all repairs and maintenance on the property . Of you are unlucky enough to get one of these tenants your property is likely to be wrecked when you eventually get it back

Except that his analysis of the quantum of tax he would have to pay is correct….

Bear in mind, the areas you are looking at are in Rent Pressure Zones; if you purchase a property in any of these areas that were rental properties just prior to being put on the market, you will only be able to rent them for that price. E.g. if you buy a 2 bed apartment in Tallaght that was rented for €1300 just before being put on the market you will only be able to rent it for that amount. There may be another apartment in the block for rent for e.g. €2,000 but you cannot rent your for that.

Many properties (and probably more so Apartments) that are currently on the market are ex-landlords getting out.