Irish rents vs yields for one bed apartments

Looking at the yields versus the monthly rents for one bedroom apartments in the all the Dublin regions for quarter four of 2015, it can be seen that the rents ranged from €888 for North County Dublin to €1,480 for Dublin 4, while yields ranged from 5.7% for Dublin 6 up to 10.5% for Dublin 10.

Dublin County was divided into 25 areas corresponding with the postal districts plus North, South & West Dublin and we were attempting to see what relationship exists if any between the amount of monthly rent paid and the yield generated for the owner.

The yield is the gross figure and can be directly related back to the price of the property by calculating the annual rent and multiplying this by the multiplier which is calculated by dividing 100 by the yield e.g. take the one bedroom apartment in Dublin 1 with a monthly rental of €1,141 multiply by 12 to give €13,692.

It has a yield of 8.7% which gives a multiplier of 100/8.7 = 11.49. This will then give a property price of …

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Irish Income Tax Schedules

Individuals pay income tax on any taxable income earned or received in a calendar year. Both these incomes are classified under a number of different headings or “Schedules”

Schedule D – Class 1: Income earned from a self-employed Trade Schedule D – Class 2: Income earned from a self-employed Profession Schedule D – Class 3: Dividends, rents and interest from foreign investments Schedule D – Class 4: Deposit interest subject to DIRT and other miscellaneous types of income Schedule D – Class 5: Rental income from an Irish property

Schedule E – : Salary and wages arising from an employment Schedule E – : Benefits in Kind (BIK) provider by an employer for an employee Schedule E –  : Pensions and annuities : normally Schedule E income is subject to PAYE, PRSI & USC deduction at source

Schedule F -: Dividends from an Irish resident company

Schedules D, Class 1&2, and Schedule E relate to “earned income” while Schedules D Class 3,4,5, and Schedule F relate to “unearned income”.

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