As Ireland continues facing a severe housing shortage, many wonder if 2024 will bring relief for struggling landlords or if rising costs and taxes will further squeeze profits. As an elite property management firm catering to scores of landlords, KPM Group offers key insights on what investors can expect in the year ahead.
New Tax Breaks Offer Major Savings
The recently announced Budget 2024 contains extremely promising news for landlords in Ireland. A new tax incentive will provide landlords lucrative credits between €600-€1000 per year for the next four years for each rental property. This unprecedented relief rewards small-scale landlords, who represent the backbone of the rental market, for continuing to provide essential housing.
As an expert property manager who advises dozens of hard-working small landlords, I believe this transformative tax break will both stem the outflow of landlords and attract enthusiastic new investors to the market. Many landlords I work with expect to save thousands in taxes over the next four years. This relief could not have come at a better time as rising costs squeezed profit margins.
Skyrocketing Demand for Rental Accommodation
While Budget 2024 gave a boost to landlords, renters received no new assistance. As a veteran industry professional, I expect rents to rise rapidly in 2024 to catch up with surging demand. Ireland still suffers from a crippling housing shortage after years of underbuilding.
Vacancy rates in urban rental markets sit at near zero per cent. Employment and population growth both show no signs of slowing. Landlords find themselves swarmed by eager prospective tenants the minute a property hits the market.
Simply put, pandemic-era demand for rental housing continues to vastly exceed supply across Ireland. Without major investments in new construction, this supply-demand imbalance will keep rents rising steadily.
Capital Gains Tax Changes Pose Little Threat
Some worry that standardising Capital Gains Tax on property sales threatens profits for landlords. However, as a longtime property investment advisor, I believe established full-time landlords focused on accumulating rental cash flow rather than flipping properties have little to fear.
Institutional investors plan to continue aggressively deploying capital into Irish residential assets that offer stable annual returns via rental income. With demand sky-high, inflated rents provide plenty of profit cushion to offset slightly higher taxes down the road.
So what to expect in 2024?
In conclusion, from my expert vantage point, 2024 shapes up as an extremely favourable year for landlords in Ireland. Strong incentives, ironclad demand, and limited housing supply stack the deck heavily on the side of rental property owners. While economic instability always poses risks, landlords seem well-positioned to weather any minor storms.
Barring an epic, unforeseen housing market crash or economic depression, savvy landlords stand ready to bank hefty profits thanks to rising rents and new tax breaks. Both amateur individual investors and professional property giants have cause for optimism and excitement as we embark on what I anticipate will be four golden years for Ireland’s vital yet oft-maligned landlord community.
Property Management Dublin
KPM Group provides specialised property management services to landlords across Dublin and Ireland. For over 25 years, we have offered client-focused solutions tailored to managing residential and commercial investment properties. If you own rental property and seek reliable guidance navigating 2024’s challenges and opportunities, contact KPM Group today.
