Mr Eastwood
Registered User
- Messages
- 27
My son and I are buying a house jointly for investment.
I think you should post your son's financial position in a separate Case Study.
Forget the tax issues. This looks all wrong to me.
If you help your son to buy a house to live in ,that is fine.
If your son is on a 20% tax band, he should not be borrowing to invest. Borrowing to buy a house is a different thing, but probably still too risky.
Your son will have a mortgage on an investment property. If he later wants to buy a home, the existence of the mortgage will prevent it.
Generally, not a good idea to buy an investment property or 1/3rd of an investment property before you buy your home.
Yes you can purchase the property as you being a 2/3 owner and him being a 1/3 owner. I don't see why then it won't be taxed accordingly. So I would just split everything that way. Income in, you 2/3's and costs the same. Your profit will be taxed at close to 50% (tax and prsi and usc etc).
Now the mortage is his alone. Not sure but then he's allowed claim the full 75% of interest against his rental income. It has nothing to do with you. Joe90 (accountant) is that correct? It's unlikely he would pay any tax.
But this is all very messy. Explain the logic of the investment?
I would want it in writing from revenue that the mortgage will be treated for tax purposes as your son's, which is the intention and reality, but it's necessary to have your name on it for the bank. Might be better if you were guarantor then I guess, but I think most banks are refusing guarantor's currently.
In relation to a future mortage I thought a bank might look at his first property as a source of income rather than a liability
Any further thought welcomed
I have a desire to get into in again and my son seems to be keen also, even though he has no hope on his own. I thought the above soultion would fill both of our ambitions. We work well together, he is young and energetic and I am older and more experienced
Would any of you know the current advantages for first time buyers
Take this a hint.My son will need a mortgage for most of his third as he does not have the funds, but his income is too low to get a mortgage on his own. He will only get a mortgage if it is done jointly with me[/SIZE][/FONT]
Would any of you know the current advantages for first time buyers
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