A LAKESHORE DEVELOPMENT OF 12 NEW THREE BEDROOMED HOUSES, WITH SECTION 23 TYPE TAX RELIEF, LOCATED IN LOUGH DERG HOLIDAY CENTRE
The Properties:
· Entrance hall with cloakroom and WC.
· Fully fitted kitchen
· Dining room with French windows, opening on to patio.
· Sitting/living room with open fire or gas fire.
· Generous landing with hot press.
· Master bedroom with en-suite.
· Bedroom 2 with twin beds.
· Bedroom 3 single bed.
· Tiled bathroom.
Total floor area C. 1100 sq ft
Full central heating.
The Location:
Ideal Location, within easy access of the following;
Dublin City – 2 ½ Hrs: Cork City - 2 Hrs: Galway City - 1 Hr: Limerick
City - 25 Min:
West Coast - 1 Hr: Shannon Airport - 40 Min:
The Price Region:
€325,000 plus VAT. (Vat refundable subject to conditions)
Investment Details:
1. The development consists of 12 two storey holiday cottages around a central courtyard, and adjacent to an existing, well established holiday centre on the lake shore.
2. Each Investor in the holiday cottage scheme will enter into a site acquisition agreement with the owner of the site and a build contract with the development company (Noinnam Ltd) to construct each cottage.
3. The owners of the cottages will be obliged to enter into a 21 year lease with the holiday cottage management company. This lease will contain a break clause, exercisable by either party after 10 years from the date of first letting of the premises.
4. The houses will be registered by the promoters as holiday cottages with Bord Failte, under the holiday cottage scheme section 268(3) of the tax consolidation act 1997.
5. The management company will be charged with the responsibility of employing a letting agent to market the letting of the holiday cottages.
6. The promoters will be the letting agent, for the first 5 years and will guarantee a minimum rental income of €7,000 per annum, net. This does not include the annual service charge payable by the owner to Lough Derg Management Co. Ltd.
7. Purchasers will be entitled to capital allowances of 10% p.a. of the qualifying costs. Capital allowances are available against all Irish source rental income. The fit out element is subject to 12.5% annual allowance. Total allowances are circa 90% of entire cost.
8. A claw back of capital allowances will arise where the holiday homes cease to be used for the purpose of trading as a tourist Holiday Home Scheme within 10 years.
9. Unused capital allowances maybe carried forward to future years.
10. A proportionate VAT repayment can arise if the property is sold before the end of the 21 year lease period without a continuing lease. Under current legislation the VAT repayment is based on a proportion of the amount originally claimed.
11. As with similar holiday cottage schemes the planning permission granted is for structured short term tourism lettings. Other use(s) at the end of tax life may require new planning permission.
12. Full interest relief on bank borrowings to acquire the property. (subject to conditions)
13. Legal Fees included in the Purchase Price subject to Purchasers using pre-appointed Solicitor.
14. Stamp duty payable by purchasers.
15. Completion, December 2006. With 2006 Tax Relief applying.
Prospective purchasers are advised to take their own independent professional
advice. This document does not form part of any contract.
Please find below some more information about the new Section 23 Development
in PDF document format:
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More Background Information (28.9 KB) |
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Details of Capital Allowances (22.7 KB) |
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House Plans (1.19 MB) |
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Full Site Layout (5.88 MB) |
For more information, please email Jeremy
Mannion