A bit of background first:
We (wife & son) have been living in a 'granny flat' in my family home in the country for the past year.
My wife works in the local hospital. She is pregnant and will be going on maternity leave shortly.
I work in Dublin and have been renting Monday to Thursday.
We recently bought a house in Dublin and we were planning to move in when she goes on maternity leave. She was going to take a career break post maternity leave and then look for a job in Dublin.
However her mother has just been diagnosed with a severe medical condition and my wife wants to be closer to her.
We have the option of building on her family land and I can keep commuting as before. We would like to keep the Dublin house if the finances can be made to work. We have sufficient savings left to meet 20% of the rough estimate of the cost of the new build.
So a couple of questions:
1. Will Revenue regard the Dublin house as a non-PPR now?
2. If it is now declared a non-PPR would it qualify for the Capital Gains Exemption if we keep it for 7 years?
3. The interest rate from the bank was for a home occupier, will they increase it to the investment property rate?
4. If we rent the house (from looking at daft the local rental rate should just about cover the mortgage. Worst case we'd be down €150 a month) will a bank have a problem with us looking for a second mortgage so soon after the first?
We (wife & son) have been living in a 'granny flat' in my family home in the country for the past year.
My wife works in the local hospital. She is pregnant and will be going on maternity leave shortly.
I work in Dublin and have been renting Monday to Thursday.
We recently bought a house in Dublin and we were planning to move in when she goes on maternity leave. She was going to take a career break post maternity leave and then look for a job in Dublin.
However her mother has just been diagnosed with a severe medical condition and my wife wants to be closer to her.
We have the option of building on her family land and I can keep commuting as before. We would like to keep the Dublin house if the finances can be made to work. We have sufficient savings left to meet 20% of the rough estimate of the cost of the new build.
So a couple of questions:
1. Will Revenue regard the Dublin house as a non-PPR now?
2. If it is now declared a non-PPR would it qualify for the Capital Gains Exemption if we keep it for 7 years?
3. The interest rate from the bank was for a home occupier, will they increase it to the investment property rate?
4. If we rent the house (from looking at daft the local rental rate should just about cover the mortgage. Worst case we'd be down €150 a month) will a bank have a problem with us looking for a second mortgage so soon after the first?