| Purchase Price Excluding Vat |
€475,000 |
|
| Stamp Duty: |
€ 35,625 |
|
| Total Cost |
€510,625 |
|
| €475,000 @ fixed interest @ 4.45% |
€ 21,137 |
|
| Guaranteed income 3.00% |
€ 14,250 |
|
| Cost to investor |
€ 6,887 |
|
| Capital Allowances @ 95% of €475,000 |
€451,250 |
|
| Capital Allowances Tax Saving @ 47% |
€212,088 |
|
| Cost after allowances |
€298,537 |
€298,537 |
| Interest Loss over 10 years |
|
|
| @ €6,887 per annum |
€ 68,870 |
|
| Tax Relief on Interest Loss |
€ 32,369 |
|
| Net loss on Interest |
€ 36,501 |
€ 36,501 |
| Net Cost |
|
€335,038 |
| Sell after year 10 with no appreciation |
|
€475,000 |
| Profit on Investment |
|
€139,962 |
| Sell after year 10 with projected |
|
|
| annual appreciation of 2.5% |
|
€608,040 |
| Profit on Investment |
|
€273,002 |
| Source: Mortgage Masters |
|
|