Frequently Asked Questions

SCK Group is the company which has emerged from the enlargement of the firm of accountants, Seamus C Kane & Associates, which was established in 1981. Operating from its new offices, Heritage House in Nutgrove Office Park, Rathfarnham, the firm has grown considerably in the last couple of years and now employs over 20 staff.

We started buying property in 1988 and continue to develop our personal property portfolio to this day. We have promoted the concept to our clients many of whom have invested in property. However due to time constraints on their part, we were asked to look at offering the complete package of selection, finance, fit-out, letting and management of their properties. SCK Group was established to offer this ‘turn key’ service.

We have many years experience in this area and are proud of our success. We are pleased to pass the benefits of our experience and contacts to our clients.

We deal with every aspect. We buy and arrange all the finance. We organise the solicitor, fit out, letting and management, thus taking all the stress out of it for our clients. We specialise in the Dublin Market and have always believed in what we do.

We tend to buy in those areas where we have purchased ourselves and know the letting potential of the area. The property can be easily let out and the capital appreciation has been very good.

Dublin and its suburbs. We are also looking at some markets in the UK but our core business will always be the greater Dublin area.

Most of the residential investment properties cost between €200,000 and €300,000 and the rental income is between €900 and €1,300 p.m.

The average house price now means it is incredibly difficult for a young couple to purchase a home in Dublin. In addition to which, the population continues to grow at a record pace. It is our belief that the Dublin property market will continue to perform well as demand outstrips affordable supply, we feel that Dublin will become like the other European capitals, with more people renting rather than buying.

The landlord will have to make up the difference. Most of our clients are prepared to subsidise repayments. They view it as a form of saving and that in the long term property has always performed strongly. Some view this as an alternative form of pension.

The outlook from all the financial institutions is that moderately low rates will continue, current thinking suggests that mortgage rates will remain tightly controlled by the ECB and therefore within a range of between 4% to 6%

We employ full time letting and management staff. All tenants have our office numbers (10 lines) and staff mobile numbers. We interview tenants and check references carefully. (See attached details of Letting and Management Services)

No - only if you want it that way.

Based on the majority of properties, where the landlord is borrowing the full loan to purchase, fit out, plus Stamp Duty, legal fees and our fees, there will be no tax payable for many years. We will advise you based on your individual situation

We open a bank account in your name to receive rental income. We only have viewing access to this account to ensure your rentals are received on time. We will also prepare rental accounts once per year for each property and will agree a fee depending on the number of properties.

We will process annual tax returns if required, on a fee basis.

VAT on property is getting more complicated, and depending on the client’s portfolio and other aspects, we will advise on a client-by-client basis.

Stamp duty and VAT are the 2 main advantages of new build, however there are other factors which can come into play depending on circumstances. In all cases we offer a very personalised service and will suggest the most appropriate option for your circumstances.

Every case is different - it depends on many different factors e.g. salaries, existing mortgage, savings, pension, tax, children etc. This question is best answered following a review of each client’s financial circumstances.

Profit on sale of property × 20% = tax payable (when you sell) less indexation and allowable costs. You can benefit from our in depth knowledge in calculating your taxable profit

Because we are preparing tax returns, we monitor capital allowances and allowable expenses to your best advantage.

(a) If we have to fund the booking deposit and a further payment on signing contracts, we charge a 7½% fee plus VAT on the value of the property.

(b) If the client pays the booking deposit and a further payment on signing contracts and part payment of fees to SCK Group, we charge a 6% fee plus VAT. Most clients get us to borrow everything and refund them the fees paid, if they have paid already. These items are all discussed and explained at our introductory meeting for which there is no charge.

There is a letting charge of 5% plus VAT and a management fee of 9% plus VAT of the annual rental income.

In line with standard Letting & Management practise, SCK Group will usually hold on to the deposit and the first month’s rent a tenant pays as part payment of our fees.

These service charges are levied by the complex to cover common areas (cleaning & lighting), cutting grass, putting out the refuse bins, building insurance etc. Such charges range from approximately €1,000 to €2,000 per year for Dublin apartments.

The apartment complex is covered by a block policy by the management company. This policy covers all external areas within the complex, stairwells, lifts, etc. for fire damage, flood damage etc. If a fire occurred outside your apartment and consequently damaged your apartment, this insurance would cover your property. However if a fire started within your apartment e.g. from a chip pan, you would be liable for the cost of repair or replacement of the contents within your apartment. We have sought a competitive quote for a contents policy.

Car spaces are usually included, it depends on the development.

These are tax-designated areas and properties, for which the government has allowed special relief for rental income and other property income over a 10 year period. We offer our clients Section 23 properties if their circumstances would benefit. These schemes are being phased out from 2006 onwards.

Our target return is in the range of 4% - 6% gross.

Over a 5-10 year period, we would expect the property would double in value.

Banks and building societies will usually fund only a percentage of the cost of the apartment. This is normally 80%. The balance is funded from a top up loan on another property (home or rented) you have. Also, the Irish Republic benefits from stable lending rates set by the European Central Bank.

All that is discussed at the first or second meeting - short void periods may occur and it is the landlord’s responsibility to cover the repayments.

Again this will be discussed at our first and second meetings.

A recent phenomenon on the Irish market, this is where you only pay the interest on the mortgage. This is a facility which can be availed of for a specific period, say 5 years, or in exceptional cases for the duration of the mortgage. The important point to remember is you will have to pay the capital back at some stage, either by regular monthly repayments or in a lump sum.

Yes - stamp duty is payable on all investment properties. The rates start at 3% and can be up to 9%, according to purchase price of property. First time buyers do have exemption. See details in our Mortgage Jargon Buster.

Yes, providing you are not increasing the mortgage to buy a new home. If you increase the mortgage amount on your old home you may not avail of interest relief on extra mortgage. Also if you were a first time buyer of this property and availed of stamp duty exemption you cannot move out and rent it for the first 5 years.

Fit out costs - capital allowances. We offer experienced advice.

Tax relief is uniform and is not based on place of residence.

The client’s name.

Disaster in Dublin, can’t rent out property and can’t meet repayments. Financial institution will repossess apartment, sell it to repay the loan. The top up loan is on the home and you have to keep repaying to avoid repossession of your home. See examples attached. Repayments on the top up loan will be a minimum of €460 p.m.

If we agree to purchase a property for completion in October 2008, normal price - €315,000, because we would normally buy 12 to18 at a time, the developer might agree to let us have them at €305,000 each. So already our client has saved €10,000. We immediately pay a deposit per apartment, and because the paperwork is so cumbersome, we will then sign in trust and pay a further sum of money per apartment.

Over the next few months, we meet with each client, and on completing all the paperwork, the client’s name is then put on the deed of the property. Your solicitor deals with the developer’s solicitor and the financial institution’s solicitor, and finally gets you to sign all the mortgage documents, at which point you will get sight of the original contracts for sale.

You can request at any stage from your solicitor a copy of the contract for sale, which states clearly the purchase price of the property.

Under the new PRTB act we are obliged to give 28 days notice if the tenant is in residence less than 6 months, 35 days notice if less than one year, 42 days notice if less than two years, 56 days notice if less than 3 years, 84 days notice if less than four years and 112 days notice if more than four years. See www.prtb.ie.

Cleaning, rubbish removal costs, advertising costs, and any repairs which should be covered by deposit.

We will organise a loss adjuster to assess the damage. We will then immediately repair any damage so as to keep the tenant. We will then contact the management company to organise re-imbursement of costs from the insurance company if possible. The landlord is expected to repay any costs incurred by SCK Group.

We immediately inform the Gardaí. Due to insurance restrictions most robberies are not covered by insurance as the excess charge is very high. We will obviously repurchase the items at cost, which have been stolen. We will then forward invoice to you to cover replacement value.

As with all property purchases, until the contracts are signed by both parties, there is no legal entitlement to the property. If this should happen with an investment property you have agreed to purchase and have paid a deposit, we will do everything within our power to complete the sale, including taking legal advice. If there is no way of completing on your chosen property, we will try to select a suitable alternative with your agreement.