I doubt it gives you more negotiating power. For the valuation I don't doubt bank will be concerned as they will have a charge over a house worth a lot more than the mortgage, they are usually worried about the opposite case.Does it give you more negotiating power with the banks due to a better loan to value rate,or does that not apply for first time buyers?We would still be getting a 90% mortgage on the agreed price.
I agree. It frankly doesn't sound like a gift. And as the parties aren't connected, there's no inherent need to apply market value.While the above answers are correct, I am not convinced that Revenue would be that interested unless they suspected some form of tax evasion e.g. They sold it to you for €200k on the books and €50k under the counter to avoid CGT and lower stamp duty.
should AAM be advocating that people pay the correct tax?
So a discount of 35%-40% to market value of a house doesn't sound like a gift?It frankly doesn't sound like a gift.
Some items regarded as a gift or inheritance include:
- cash
- house or lands
- household contents
- ......
No, how can it be a gift when it's a deal between strangers?So a discount of 35%-40% to market value of a house doesn't sound like a gift?
Revenue's website says:
You don't have to know someone well to give them a gift.No, how can it be a gift when it's a deal between strangers?
It's not a firesale they are deliberately not seeking an open market sale and offering a material discount to market value.No different to any bargain sale when the owner needs to sell and there's only one bidder.
if I was Revenue I would query whether there was something going on here, such as an attempt to avoid CGT on the uplift with the purchaser making the refund to the vendor in cash.
I am not convinced that Revenue would be that interested unless they suspected some form of tax evasion e.g. They sold it to you for €200k on the books and €50k under the counter to avoid CGT and lower stamp duty.
Do tell me how that works?You don't have to know someone well to give them a gift.
They're still not connected parties and as such there is no requirement to apply market values to the transaction.It's not a firesale they are deliberately not seeking an open market sale and offering a material discount to market value.
Well the OP would:nobody would seriously call that a gift.
we are in the fortunate position of being offered the opportunity to purchase our first home below market rate from a friend of a friend. They just happen to be very considerate people and see it as being way over valued due to the housing crisis!
And who really knows what it's worth?
They did have it valued and its being offered to us,
That still doesn't mean it's a gift.Well the OP would:
Well the vendor for one:
What are the figures involved?my wife and I bought a house from a wealthy family friend who offered us the house for well below what it was worth.
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