In addition to the buyer benefits highlighted, including fishing entitlements and membership of Enniscrone Golf Club, there are a number of opportunities, which have been designed by the promoters, to ensure significant capital appreciation for buyers of a property on the Mount Falcon Estate.
The Mount Falcon Estate properties can be leased by the promoters on a 20-year lease, with a 10-year break option, after which the owners can renew a lease, reside in, let out or sell the properties. The promoters will offer a guaranteed minimum rent for two years and any rent above the minimum will be shared between operator and owner.
On registration with Failte Ireland, the Irish Tourist Authority, the properties will qualify for capital allowances on the cost of construction. This allowance can be used to offset any tax liabilities on Irish source rental income (Case V of Schedule D). Tax allowances on the fixtures and fittings are also available for offset against the rental income from the Holiday Homes. Any unused allowances can be carried forward.
The promoters of Mount Falcon are positioning Mount Falcon as a premier destination for discerning guests. They are responding to a strong demand for this type of accommodation from the upper end of the market, people who enjoy country sports and a healthy lifestyle. The all-year-round market is catered for through the leisure and spa facilities, conference facilities and catering facilities. Based on rental projections and to aid financial planning, the promoters will guarantee a minimum annual rent to each owner of €8,000 for two years. Any rental income above this figure will be divided between the owner and promoter on a 50/50 basis. Furthermore, rental income will be pooled for distribution to each owner to give additional comfort.
VAT will be charged on the sale of the properties at the rates of 13.5% for the buildings and 21% on the fittings. This VAT should be fully recoverable provided the owner registers for VAT prior to purchase. On the granting of a 20 year and one day lease to the management company, a VAT charge also arises. However, where both parties are VAT registered they can avail of a procedure (under a Section 4A mechanism) whereby the management company (the lessee) accounts for the VAT. The purchasers should obtain their own VAT advice in relation to the implications of registering and accounting for VAT.
The block insurance, public liability insurance, refuse collections, road maintenance, common area electricity, repair and maintenance contracts for the houses will form part of the service provided by a managing agent and will be deducted from the gross rents.
To find out more about one of these unique properties, simply contact Alan Maloney on 096 74472 at Mount Falcon, one of the top hotels in Ballina.