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But doesn't this mean just a €20K surplus from the sale of your home? Less selling and buying costs. How is that going to make things easier? Perhaps you mean a newer property with less maintenance or something?cormac said:I have recently retired,a pension of about 47,000.I own a house valued about 450,000 and an apartment valued about 380,000.I have savings of around 160,000.The house has become too big for myself and my wife and we are considering buying an apartment for 430,000 and taking life a little easier.
If he is not going to live there as well then his FTB status is irrelevant as he will be buying as an investor. But he will also lose his FTB status in relation to any future purchase of a home for himself in doing this. In general it probably doesn't make sense for FTBs to lose their FTB status by making their first property purchase an investment one.My son who is unmarried lives in our apartment has savings of about 200,000 on deposit which he would like to put to better use and is considering a buy to let. As a first time buyer,would it make sense for him to buy the apartment we are considering and let it out to us.He will eventually end up with half of what we leave.
Charging him rent would certainly assist you in taking it a bit easier in retirement! Sounds like he's old enough and well enough off to stand on his own two feet and pay rent for accommodation.cormac said:Basically my son lives in our apartment rent free in Dublin.
He loses his FTB benefits by buying an investment property as his first foray into the property market. If/when the property becomes his PPR and he eventually sells up then some portion of any resale gain will be assessable for CGT which would not be the case for a property which was always a PPR and never rented out. These issues need to be weighed up.Other than stamp duty I cannot see where he would lose.
I don't understand this point.I would be on the pigs back and a few quid from the tax man by renting.
cormac said:but he is still our baby and we don't need the money.
If you want to take things easier then charging tenants rent would be a good start.I have recently retired,a pension of about 47,000.I own a house valued about 450,000 and an apartment valued about 380,000.I have savings of around 160,000.The house has become too big for myself and my wife and we are considering buying an apartment for 430,000 and taking life a little easier.
I'm just pointing out the potential drawbacks of his first property purchase being an investment one. I think that these are significant. He may decide that they are acceptable to him. As ever it's a cost/benefit exercise.I accept he would be stung for the gains tax but that would be his baby which and as he will end up with our hard earned cash,he won't be doing too bad.
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