There are many good reasons to purchase a property in Ireland and here are some of them:
- It’s yours! Renting in Ireland is a precarious business and to a large extent you are at the mercy of your landlord. If your landlord wants to sell, move in a family member or carry out extensive renovations your lease can be terminated.
- It can also be difficult to renovate or invest in a rental property as you might like. When you own a property, it’s all yours to do with as you please.
- You can avail of the rent a room scheme. Rental income in a house you own is exempt from tax up to an amount of €14,000.00. You must be living in the house yourself and it does not apply to short term lettings.
- The landlord and tenant legislation do not apply to rentals in your own home which gives homeowners extra security. This is more bad news for the tenant of course and lettings by live-in landlords may be terminated without notice.
- The rate of stamp duty payable on a residential property purchase is 1%. On commercial properties, and other non-residential property, the rate is 7.5%.
- Another advantage of owning your own home is that if you ever sell it there is no capital gains tax on any profit you make from the sale of your residential property. Capital Gains Tax is a tax charged on gains and it is usually charged at a rate of 33%.
- Interest rates in the bank are almost non-existent at the moment but just in case you do earn any interest, the interest on savings is 44%. It’s possibly more advantageous to have your money invested in property but of course property prices can rise or fall!
- Based on current rents most peoples’ mortgages seem to be a lot cheaper than if they were renting the same property. Of course, there is no guarantee that this will remain the situation and mortgage rates can up or down. The opposite is also true of course and rents could continue to rise.
- Depending on the type of property you purchase you can renovate, extend or build or generally alter the property as you see fit, as long as it all complies with building and planning regulations of course!
- You are not totally tied to your property. It shouldn’t be a burden but rather a benefit to you. If you want to move or travel abroad, you can always rent the property or sell it again. It can be difficult to raise the deposit, get the mortgage and buy the house but if you can, with the independence and tax efficiencies that go with home ownership, it is a very good investment no matter where you are in your life.
The above is not meant to be construed as legal advice and each person’s individual circumstances are different.
If you have any queries in relation to this article please contact Kieran O’Donovan or Byran Cotter of Tynan O’Donovan Solicitors at 061 314948.