Dublin 7 from €520,000: Section 50 student units near Smithfield are already pre-let, writes Kate McMorrow

With the rental market showing signs of oversupply, investing in a tax-effective development which is already pre-let seems a safe option, especially for those with limited experience in the business of buy-to-let.

This type of purchase comes at a cost, as prices tend to be higher than similar apartments without the tax breaks. Set up to ease the shortage of student accommodation, Section 50 apartments come fully furnished and fitted out ready for students to move in. Many are fully booked for letting for the first scholastic year.

Like Section 23, tax relief is based on the construction cost of the residential accommodation, minus the site cost. The properties must continue to be rented for a period of 10 years from the date of first letting, excluding gaps because of change of tenancy.

A claw-back of relief is due should the property be sold on within this 10-year period. Once this time is up, owners can use the apartments as they choose, continuing with student rental or splitting them into smaller units to attract a wider market.

A Section 50 development in Dublin's north inner city is viewing this weekend with Hamilton Osborne King.

Brunswick Court comes with tax breaks for investors, is being sold pre-let for this season and can be transferred in time for this tax year. The location is prime for student lets, on the corner of Stoneybatter and North Brunswick Street and a few metres from the Luas and Smithfield. A number of colleges are nearby, including DIT Bolton Street, Trinity College and Blackhall Place.

None of this will worry Brunswick Court buyers in year one, since the apartments are pre-booked. Four-bedroom units are on offer, all fully furnished and kitted out ready for occupancy. About 34 four-bedroom apartments of 95sq m (1,033sq ft) are available, costing from €520,000 to €557,500. The more expensive units are on upper floors. The development is beside the 65-acre Grangegorman lands, which are earmarked for a new DIT campus.

With students in mind, all bedrooms have en suite facilities and a study area. Good-sized living/dining/kitchens are also part of the package. The four blocks are grouped around a central courtyard.

There are no parking facilities, but bicycle storage is provided. Viewing is this weekend.