The national average rent is now almost €1,100 per month

Many/most landlords have low or no postitive cashflow from their houses. Because many small landlords have no idea what they’re doing, they then claim they’re not making a profit.

In real life, as long as the rent covers the mortgage interest plus about 25% the interest to cover non-claimable interest, plus costs, they are making a profit.

(For instance, if you have a 300k mortgage on which you pay 1500 of which 1000 is interest, get 1600 rent, then you pay tax on 150 of the interest (because 85% can be claimed against tax) plus the surplus 600. So, let’s say tax is 50% for easiness. You pay 325 euro tax, so you have 1275 left over. So you make a cashflow loss of 225, but a profit of 275 (you’re paying that much off your property’s capital ‘for free’).

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