Trying to sell house - at my wits end

The 'mortgage company' are not responsible for your tax issues.

You have to pay a stamp duty clawback on the house you bought as you are now classed as an investor.

From the sounds of it, you may benefit from speaking to a professional tax advisor.

This is going away from the original poster's query, so please start a new thread if you wish to get more information specific to your situation.
 
Hi,

Dont know if this has been mentioned already as I have not been able to read through all the posts as baby is due a bottle but could you go interest only until the house sells. This will reduce your mortage payments buy a few hundred.
 
Howitzer said:
This is terrible advice.

1. The day you rent the place you will become liable for stamp duty clawback at the rate that an investor would have paid on your property. This could run to 10s of thousands of euros.
2. You will no longer be eligable for mortgage interest relief. This will INCREASE monthly mortgage repayments.
3. You will become liable for CGT on any gains when you eventually sell.
4. IF, and this is a really big if, but IF your rental income exceeds your mortgage interest payements then you will be liable for income tax at your marginal rate (41%) on this profit.

Failure to pay these tax liabilities will result in significent penalities and interest, irrespective of whether your mate down the road has done this.

The best route in these cases is always to avail of the rent-a-room scheme and stay within the bounds of the tax breaks available to you.
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Howitzer said:
This is terrible advice.

1. The day you rent the place you will become liable for stamp duty clawback at the rate that an investor would have paid on your property. This could run to 10s of thousands of euros.
2. You will no longer be eligable for mortgage interest relief. This will INCREASE monthly mortgage repayments.
3. You will become liable for CGT on any gains when you eventually sell.
4. IF, and this is a really big if, but IF your rental income exceeds your mortgage interest payements then you will be liable for income tax at your marginal rate (41%) on this profit.

Failure to pay these tax liabilities will result in significent penalities and interest, irrespective of whether your mate down the road has done this.

The best route in these cases is always to avail of the rent-a-room scheme and stay within the bounds of the tax breaks available to you.
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If you have an opinion on something that's fine, it's your opinion after all. However, there is no need to be so rude and attack my suggestion. I would naturally assume that the poster is an intelligent person and would weigh up all advice & suggestions given here and then apply them to their own circumstances, (that may or may not have given all the details.) I didn't realise it was some sort of a competition where one poster attacks the advice of another. I find your behaviour very disrespectful.

Perhaps a more mannerly way of putting what you wanted to say should have been : "Whilst TDON states xyz, I wouldn't be inclined to agree as it has been my experience that abc, is the case." Which would be fine, as I never said I was right.c

I said I've seen someone do this before and I have and it worked out extremly well for THEIR circumstances.

I said that to rent is normally more, than to mortgage and to check out Daft. If one does that and compares, it's true.
 
Batty, the best advice is to switch it over to an Interest Only mortage for a year at lest until the dust settles, then rent it. This way it will allow to be completed. People will start buying again. No-one out there is moving until it is over. People are staying put. My next door neighbour had tried to sell his house for nearly 10 month, eventually had to drop it and move on, he had to, he was moving back home to Cork. If you are getting lip service, move EA, some are not putting efforst in as they knwo the activity in teh market has stopped due to the obvious reasons. Best of Luck!
 
In fairness TDON, it is terrible advice with serious financial implications for the OP. Perhaps Howitzer tried to put it so bluntly so that the OP would sit up and take notice of this fact.

The suggestion to go interest only until the property is sold is a good idea. It will ease cash flow Batty and take some of the stress out of the situation for you.
 
pddc07 said:
Batty, the best advice is to switch it over to an Interest Only mortage for a year at lest until the dust settles, then rent it. This way it will allow to be completed. People will start buying again. No-one out there is moving until it is over. People are staying put. My next door neighbour had tried to sell his house for nearly 10 month, eventually had to drop it and move on, he had to, he was moving back home to Cork. If you are getting lip service, move EA, some are not putting efforst in as they knwo the activity in teh market has stopped due to the obvious reasons. Best of Luck!
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Batty is a first time buyer so as soon as she rents the property, she becomes liable for a stamp duty clawback plus she loses her TRS. If she pays the clawback, registers with the PRTB, she can then deduct mortgage interest from rental income but only at the end of the tax year. Her dilemma is cash flow now. She's finding the mortgage difficult to cope with so how would she afford to pay clawback and the mortgage while losing out on TRS. The rent a room scheme is a much better option if it's feasible.
 
TDON said:
I said that to rent is normally more, than to mortgage and to check out Daft. If one does that and compares, it's true.
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I agree with Howitzer, your advice was terrible. That's not attacking you personally, just your advice. There's no point pretending the advice was good to spare your feelings - what if the OP was inclined to follow it?

The average yield on a 4-bed in South Dublin (the highest for 4-bed's in the country apart from Limerick) is 3.7%. This is nowhere close to mortgage costs and is even less than the ECB base rate. This is before we factor in that this is gross yield and the OP will be losing their TRS (so their mortgage cost will increase).

Then there is SD and CGT implications ...
 
There is an exclamation mark at the top right hand corner of each posting if someone feels offended by any particular post. I stand by my points and the manner in which they were stated.
 
Now I get it - all the posts have an exclamination mark (never noticed before) therefore if someone feels that another poster is insulting/rude etc they can complain to those in charge of this website.

To the OP - no matter how good or bad an estate agent is they are not going to sell a house if there are no buyers. Personally I think houses sell themselves. You seem to have a practically brand new house, furnished with style and it's not selling. Fundamentally it's a good product. Therefore either they're are no buyers or your price is too high. This is despite that fact that you are selling at 30 to 50K (open to correction on this) less than you paid for it.

If you can afford to ride out the storm financially then keep paying the mortgage if not sell and reduce your asking price (after the election just in case this is having a bearing on the potential purchasers at the moment. )

As it's your principal private residence there is no CGT to pay. I base this on the fact that you said you let out your original home and you want to go back there so this assumes that you currently live in the new house.
 
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