As the tourism and technology sector booms in Ireland, and a growing number of students attending Irish colleges and Universities, the demand for rental properties is greater than ever before. As it stands, the average monthly rent is the highest in over ten years. Therefore, buying a property you can rent is the smartest investment you can make.
- It is the best investment opportunity
With an impressive capital growth and a strong investment yield over the past decade, property to rent in Ireland guarantees high returns. The amount of income that you can generate from the capital that you invested is even better than dividend income and deposit interest rates. Additionally, property offers a very good option to bring diversity to your portfolio of investments. If you have invested in cash, shares or assets, property is a can be the best addition yet. It is also important for you to understand that associated costs like stamp duty and legal fees on the purchase of rental property, are extremely reasonable.
- The best security for the future
If you rent out a property in Ireland, you are sure to get a reasonable income once you retire. Many investors who purchase property to let consider their portfolio of property as part of their pension. If the property is in the right location, the strong tourism sector will see you get a steady and rich revenue through short-term Airbnb-style rental offers. Through Airbnb, you are guaranteed a lot of tax advantages through reliefs that are available through transfer or sale.
- You cannot do it alone
Buying an apartment to rent offers a great investment opportunity. However, if you are not fully experienced in the property sector, you should consider getting help or advice from an expert. Regardless of whether you are a resident or not, you will need to report your income and pay tax by filing an Irish Tax Return, meaning that you should hire a tax advisor to help since you could miss out on important credits or deductions. The tax advisor could also help in taking deductions for the mortgage’s interest from when you first rented out the property. Lastly, if you have a mortgage on the property, every tenancy needs to be fully registered with the Residential Tenancies Board so that you get a deduction for the interest incurred by the mortgage. Please remember that if you do not register the tenancy, you could pay a lot of money in fines.