Triple hit on rental income

THOSE who entered the residential buy-to-let market, particularly at the latter end of the boom, are now experiencing a triple onslaught of a significant reduction in rental income, a raft of new Central Government taxation and a disturbing average capital equity loss of €150,000 to €200,000 on each purchase.

To compound the financial stress, the lending institutions have — in many cases where finance was not tracker-based — upped their interest rates levels and have also begun to insist on early capital repayment.

A reduction in rental levels since 2007 has on average been equivalent to 25%, reducing the typical monthly rental income from €1,100 per annum to €825 per month for each residential unit.