According to Eamonn Donaghy, tax partner at KPMG, the past few years have been an “interesting” period for property investors in Northern Ireland.
He said: “The rise in property prices during 2005, 2006 and 2007 has now been somewhat overshadowed by the fall in prices driven by the credit crunch and the current uncertain economic environment.
“Those who have invested into property for the long-term will not be as adversely affected by the current downturn as those who are hoping to flip in the short term.
“Despite the doom and gloom, there has already been some significant property transactions this year consisting of a number of notable landmark buildings in Northern Ireland.”
Mr Donaghy said that despite the downturn, he remained optimistic. He said: “Long term property investment is a very necessary part of our economy and appropriate planning and professional advice is needed to ensure the maximisation of long term returns. While finding the appropriate property, financing its acquisition and maximising the rental return are all key parts of the property investment business, appropriate tax planning can have a significant effect on the overall after tax yield.”
Mr Donaghy said KPMG had “never been busier” as it worked with a number of clients and their banks to devise ways of working through some of the complex issues. “Our clear objective is to minimise tax costs and maximise the after tax return achieved by the investors.”
KPMG is sponsoring the investment deal of the year category at this year’s Belfast Telegraph Property Awards event which take place in association with Ulster Bank on November 13 at the Ramada Hotel, Shaw's Bridge, Belfast. There are 10 categories in total for both the commercial and residential property sectors. For further information see www.belfasttelegraph.co.uk/propertyawards or contact organisers JPR on (028) 9076 0066 or email@example.com