Just when you thought it was all over, another handful of tax incentive developments hit the market in time for people to buy before making their end-of-October tax return. Kate McMorrow on the effects of the tax breaks - and why investors and owner occupiers still love them. Here, she looks at two developments launching this week.

Ever wonder why investors are always at the head of the queue when a new development offering tax breaks is launched? Why they sometimes buy six or seven units at a time and aren't too pushed about the view or what the kitchens look like?

As the October 31st deadline for preliminary tax returns approaches, a flurry of tax-designated schemes has hit the market, in time for contracts to be signed by the end of the year.

Whatever your lifestyle, there is a tax-incentive scheme to suit, from straightforward Section 23 urban and rural renewal developments to Section 50 student accommodation projects and Section 23-type holiday home schemes.

Be prepared to pay over the odds for a foothold in these tax-incentive schemes. For developers and their selling agents, they are an opportunity to secure quick sales at maximum profit. It is prudent therefore to check out the long-term equity value in a Section 23 or 50 investment.

In a property with this type of tax break, investors can set the purchase price - less the cost of the site - against all rental income in the Irish Republic, including commercial rents.

This means that owners of a factory, offices or consulting rooms can rent the accommodation back to themselves and include the resulting income under the tax break. Investors with multiple rental properties can, if they acquire Section 23 properties, obtain tax relief on their considerable rental income.

This is a significant tax saving for major players on the commercial and residential property scene. The tax break can be taken in one swoop in the first year if the investor has enough rental income against which the allowance can be offset. Alternatively, the tax relief can be spread over a period up to 20 years. It depends on how much rental income the investor has to claim against.

The only proviso is that the properties are let on the open market for a period of 10 years. The relief applies to the property and may be transferred from owner to owner during this time, although the initial owner will be liable for a clawback and the property must continue to be rented out for the remainder of the 10-year term.

Owner-occupiers can set the same amount against all income, including PAYE, for a 10-year period. Unlike investor purchases, this is not flexible and there will be a clawback of tax relief if the property is sold before the 10 years are up.

Section 23 was initiated by the government to develop unsightly plots of vacant land in urban locations and to encourage population densities in neglected rural areas.

Dublin's quays, now a popular location for young professionals, were among the designated areas when first introduced. Rural areas with decreasing populations such as counties Leitrim and Longford were also targeted for tax-incentive development.

Temple Bar's regeneration was one of the most successful for owner-occupiers, its arrival creating a lively residential area within the city centre boundaries. Smithfield is another location with a high proportion of owner-occupiers.

Other city centre locations have proved a harder sell, however, and investors are hailed as pioneers in the process of revitalising Dublin's north and south inner city. Tracts of the west around Clondalkin and Tallaght are also investor-driven.

Section 23 is due to end in 2006, its job done says Des Donnelly of Hooke & MacDonald.

"It's mostly private investors who are taking the risk and they needed an incentive to do this. Section 23 has had a positive effect on designated areas, raising the rental stock of apartments and general standards in the rental market," he says.

Investors who took advantage of Section 23 schemes are not all hard-nosed landlords, continues Donnelly, adding that many were ordinary PAYE earners who had a property apart from the family home and wanted to rent it out rather than sell.

Others are self-employed workers intent on building up a portfolio of rental properties as a pension provision.

The notion of heavy-hitter investors snapping up multiple apartments in a phone call and posting on the cheque the next day is an accurate one, although a percentage do check out the quality in person if show units are on view.

While most tax incentive schemes tend to be in rundown locations which require an economic boost, occasionally a location attracts buyers for its tourism potential.

The Moorings and Rosbercon Court in New Ross, Co Wexford were a hit when recently launched through joint agents P O'Gorman and Hooke & MacDonald.

Here, investors could choose between a steady year-round rental or a higher yield in the summer season, says local agent Phillip O'Gorman.

"New Ross is an attractive coastal town with the amenities of the River Barrow and the coming new marina, so people are also looking at good capital appreciation," says O'Gorman.

Section 50 schemes, which offer furnished and equipped student rental accommodation, are a sure bet for investors. A letting management company is generally up and running and apartments fully let in advance of the academic year.

Sherry FitzGerald Connell is currently marketing Kingscourt, a student apartment complex near the Institute of Technology in Tralee, Co Kerry.

Investors placed deposits sight unseen at the start of this scheme, driving down to view when show units were completed. Ten four-bed units are still available, priced from €230,000.

Section 23-type holiday properties have a slightly different clientele, often people who intend using them as private holiday homes when the 10-year rental term is up.

One such scheme is Inbhear Scéine in Kenmare, featuring 40 three-bed semis overlooking the bay near the prestigious Sheen Falls hotel.

A few still available are priced from €280,000 to €385,000 through Sherry FitzGerald Daly.