Are you thinking about buying an investment property through a mortgage?
Investment mortgages are available to clients who already own their own home and are considering
purchasing a property to let.
Some key points to note before applying for a buy to let mortgage are:
Not all lenders offer Buy to let mortgages
Up to 70% mortgage finance is available on the property to be purchased
First time buyers are usually exempt from buying a buy to let mortgage
Separate investment mortgage rates generally apply to buy to let mortgages (these are
typically higher than residential mortgage rates)
The lender will often look for written for comparable when reviewing expected rental
income
Rental income is liable for tax and an annual return should be made to revenue each year
(through accountant or via individual Form 11)
One of the most important things is the projected rental yield (income vs the cost of
maintaining the property) and securing the right tenant
There are strict rules in force for landlords so it is recommended that you avail of a letting
agent to manage the property on your behalf that can advise you on responsibilities and
deal with any potential ongoing issues. Fees charged can be written off against taxes due)
It may be possible to purchase your investment property through either your business or
your pension fund which could potentially save you thousands of euro (be sure to get
specific financial advice in this area)
