It's a sign of post-Bacon times that owner-occupiers are expected to be strongly represented among purchasers of the latest tranche of apartments being released today in the tax-driven Custom House Square development in the Dublin docklands.
Agent Douglas Newman Good has pin-pointed the one-bedroom units in particular as attractive to owner-occupiers, given the across-the-board nature of the new stamp duty levy on investors. A total of 40 apartments are being offered for sale from £185,000 for 12 one-bedroom apartments with a floor area of 500 to 530 sq ft. There will be 14 two-bedroom units with between 600 and 850 sq ft, costing from £240,000, and six 950 sq ft three-bedroom apartments from £330,000. Eight three-bedroom penthouses from 1,100 to 1,300 sq ft are expected to fetch around £500,000. Car-parking spaces are an option at £25,000 for most of the units.
About 60 per cent of sales in previous phases were to investors, according to Douglas Newman Good. At least 60 of the first 268 apartments were retained for renting by the developers, Chesterbridge Developments.
Rents at Custom House Square average £700 to £800 per month for one-bed apartments, £850 to £1,100 for two-beds and from £1,200 for three-bedroom units.
Section 23 tax incentives are available for both investors and owner-occupiers. Investors have relief on rental income only. The new stamp duty of 9 per cent for investors regardless of purchase price will probably encourage investors to target the more expensive units. Because this is a Section 23 scheme, however, the 2 per cent annual levy will not apply.
Section 23 offers tax relief on the purchase price to owner-occupiers. A typical owner on a tax rate of 44 per cent will be able to set £280 per month against tax over a 10-year period, based on an average one-bed apartment costing £195,000.
Although among the highest prices in the city centre, these apartments sell at a premium as one of the few Section 23 schemes outside Temple Bar. A third phase of Custom House Square still in the planning stages is not expected to include tax incentives.
Most of the first phase apartments are occupied. These are in three blocks, two with central glazed atriums and the other an unusual circular drum-shaped building clad in timber and surrounded by water.
The latest apartments, in the four blocks built around a courtyard, will be ready to move into by Christmas. Distinctive features include 9ft high ceilings and bright, spacious living/ diningrooms with full-height windows opening to balconies.
Kitchens are large with Shaker-style units and stainless-steel cooker hoods. There are en suite bathrooms with main bedrooms in most of the two and three-bedroom apartments.
