| Purchase Price Excluding Vat |
€475,000 |
|
| Stamp Duty: |
€ 35,625 |
|
| Total Cost |
€510,625 |
|
| Financed by 100% Loan |
|
|
| €475,000 @ Variable tracker @ 3.1% |
€ 14,725 |
|
| Guaranteed income 3.% |
€ 14,250 |
|
| Cost to investor |
€ 475 |
|
| 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 |
€ 4,750 |
|
| Tax Relief on Interest Loss |
€ 2,232 |
|
| Net loss on Interest |
€ 2,518 |
€ 2,518 |
| Net Cost |
|
€301,005 |
| Sell after year 10 with no appreciation |
|
€475,000 |
| Profit on Investment |
|
€173,945 |
| Profit on Investment |
|
€173,945 |
| Sell after year 10 with projected |
|
|
| annual appreciation of 2.5% |
|
€608,040 |
| Profit on Investment |
|
€307,035 |
| Source: Mortgage Masters |
|
|