VAT CAN GIVE CASH FLOW

There is concern at present that because of rising interest rates and diminishing rental yields and a constant rise in new property prices that the market is going to become unsettled and as soon as investors come under pressure they made decide to sell their investment property bringing about a crash in property prices

For a number of years now Loweq Financial Consultants have helped hundreds of investors who are buying new homes to let, avail of an interest free lump sum VAT refund which amount to approximately 12% of the purchase price.

These lump sum refunds are interest FREE to the investor. They are repaid by the investor at the rate of approximately €174 in every €1,000 of rent received until cleared. While the investor is repaying the lump sump he/she is effectively writting off the repayment against the gross rent received which in a nutshell offers them a lump sum of money in the year of purchase which they pay back as they receive rent over a number of years thus gaining time value of the money without any charge for the use of the money and enables them to have a tax write off against rental income as they repay it. If the VAT registered investor who has claimed back the VAT comes under the same pressure as the investors who does not avail of the lump sum interest free and tax free the VAT registered investor is better able to deal with a pressure situation.

If there is no rent coming in then not alone is there no repayment due to the VAT office but the mortgage repayments can be paid out of the VAT lump sum for the short term without the investors having to dip into their own resources thereby relieving all pressure to sell early. An investor is able to focus on the longer term objective that is namely the growth in the value of their asset. They thus ensure that rental income tax in the early years is either negligible or non existent. For more information on the cash flow scheme contact Fergal and his team at 01 4049391.