Second property

E

eoin3_17

Guest
Hi,

I bought a house 2yrs ago as a FTB and am an owner occupier in Limerick but want to buy an apartment with my partner in Cork. She is a first time buyer and our plan of attack is to apply for a joint mortgage, but does this automatically mean that my primary residence will become an investment property? Could I stay an owner occupier in Limerick while she is a FTB/owner occupier in Cork with my name on the mortgage?

Any help is appreciated,
Eoin
 
You can opt to have Limerick as your PPR but if you joint purchase with a FTB, she will lose her FTB relief.
 
She can buy alone as a FTB assuming she fits the lending criteria but if you buy jointly the Stamp Duty concession will be lost - unless it's a brand new property where SD isn't payable for owner occupiers. If you move into the Cork property without selling the Limerick property becomes an investment which may lead to a SD clawback and a CGT liability when you do come to sell it. If you join the Cork property, but live in Limerick as your home, investor SD rates will apply to the joint Cork property irrespective of whether it's to be your partner's home or whether it is brand new.

Sarah

www.rea.ie
 
She wont qualify for it on her own...seems like the best thing to do is to make the Limerick hse an investment hse and the Cork one an owner occupier...is there anyway around this...for example if I was gurantoor or if my name wasnt on the property deeds??
If the Limerick hse changes to an Investment Mortage it just means the rates will go up is it? Will I loose my interest relief on it?
 
As the 2 properties will be in two different cities, you cant just decide which one is your PPR for tax reasons, your PPR is the home that you live in.
Do you intend to move to Cork ?
 
I know that this has probably been asked before, but I have a question in relation to effects of buying a second property. I purchased a new property in Cork 2 years ago as an owner occupier, but moved to Dublin in August last year. I rented out my Cork property since December. I am renting in Dublin at the moment but have purchased an apartment there with a view to moving in June 07.
So my Cork property has become my investment property and I will soon have a PPR in Dublin.
So I owe stamp duty on my Cork property?
I lose my mortgage interest relief on Cork property? How does this work?
I can deduct my mortgage interest against my rental income for Cork?
I don't get mortgage interest relief on Dublin property as I am not a first time buyer anymore?

Is what I have written, correct?
 
Damo32 said:
I purchased a new property in Cork 2 years ago as an owner occupier, but moved to Dublin in August last year. I rented out my Cork property since December. I am renting in Dublin at the moment but have purchased an apartment there with a view to moving in June 07.
So my Cork property has become my investment property and I will soon have a PPR in Dublin.
So I owe stamp duty on my Cork property?
Click to expand...
Yes - from the time that it was first rented out.

Revenue acts on abuse of stamp duty relief
I lose my mortgage interest relief on Cork property? How does this work?
Click to expand...
Yes - from the time that it was first rented out. You need to cancel the TRS with Revenue and pay back any relief mistakenly claimed since it was rented out. You can offset interest agains rental income when making your rental income tax returns though.
I can deduct my mortgage interest against my rental income for Cork?
Click to expand...
Yes.
I don't get mortgage interest relief on Dublin property as I am not a first time buyer anymore?
Click to expand...
You do and you may still get FTB relief but you will at least get non FTB relief. You need to cancel the TRS claim on the Cork property and then claim TRS on the Dublin property.
 
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