Buying my parents' home

[elliecon]

Hi, I am currently living at home with my parents and I have recently been discussing with them the subject of buying the family home from them. The house is currently worth €300K but they said they would be willing to sell it to me for €150K. Does anybody know if it is possible to do this, sell the house to me at below market value and if so are there any implications for me or my parents in doing this e.g. tax implications etc. Many thanks

 

[CCOVICH]

Re: Buying my parents home

As far as I know

The stamp duty will be assessed on the €300k (you will be liable for half the normal rate).
You will be assesed to CAT on the difference between the market value and the sale price.

You may wish to seek professional advice on the matter. There may be exemptions available under certain circumstances, such as those mentioned in this [broken link removed].

 

[mf1]

Re: Buying my parents home

Are you an only child? If no, what do the rest of the family think? If yes, do you intend that you will all live together? Or are they moving out? If no, what happens if there is a falling out? Or you want to get married and your spouse does not want to live there? What happens if you need your money back at any time - can you sell the house at any time?

There are obvious merits in acquiring a property at half the market value but the other side of that is possibly acquiring sitting tenants!

One to take careful advices on.


mf