Can I be a home owner and council tenant at the same time

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dave29

Registered User
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108
My partner is disabled and on those ground has a bungalow. She's had it about 10 years.

I'm down as living here and our rent reflects this.

We have a son who is 5 and I wanted to have something for him when we are gone. So I want to buy a small house I. Kerry/Clsre etc. Something for around 200k. We nearly have the deposit saved.

I would be getting a single mortgage as ky partner doesn't have an income.

If I did buy a house I wouldn't be living in it full time. We'd only be in it during holidays and some long weekends.

Would I still be allowed be a tenant if I had this house?

Any help would be great
Thanks
 
Running two houses costs money, between that and the interest charged on a non-principle residential mortgage, you run the risk of just building debt. How do you know your son will want a house in Kerry?
 
dave29 said:
My partner is disabled and on those ground has a bungalow. She's had it about 10 years.

I'm down as living here and our rent reflects this.
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dave29 said:
We have a son who is 5 and I wanted to have something for him when we are gone. So I want to buy a small house ............
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Can you and your partner not buy the council bungalow that you currently live in ?

Buying or inheriting a local authority home

Schemes for local authority tenants to buy their homes at a discount as well ways in which you might inherit one..
www.citizensinformation.ie
 
Leo said:
Running two houses costs money, between that and the interest charged on a non-principle residential mortgage, you run the risk of just building debt. How do you know your son will want a house in Kerry?
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It's more that he has an assist. He can do what he likes with it.

Also. For not it's a place we got to to escape Dublin
 
Leo said:
Running two houses costs money, between that and the interest charged on a non-principle residential mortgage, you run the risk of just building debt. How do you know your son will want a house in Kerry?
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I also didn't know there was a different interest charge on a home I wouldn't be living in full time.
 
Whose name is the tenancy in? You say because she is disabled she has a bungalow so I assume it’s in her name . The rent is probably based on all household income so I would assume you can do whatever you like with your money. I wouldn’t advise buying another property - loads of problems ahead!
 
dave29 said:
It's more that he has an assist. He can do what he likes with it.

Also. For not it's a place we got to to escape Dublin
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If you just put the money that you'd spend on mortgage interest, insurance, property tax, upkeep & maintenance, etc. into a savings plan over the years, he might end up with a lot more without the complication of capital acquisition or gains taxes.
 
dave29 said:
I also didn't know there was a different interest charge on a home I wouldn't be living in full time.
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If you don't declare the Kerry/Clare house as your principle primary residence, you will likely end up paying investor mortgage rates.
 
In the context of the info provided by the OP I would think the better idea would be to do something along the lines of what Leo posted above
Both you and you partner can give your child €3k each per year tax free to be invested in a savings plan that he can access later on in life
It also doesn't tie you down to making monthly payments every month with a 20 year mortgage
Which gives you more freedom with your money should the need arise
 
Leo said:
How do you know your son will want a house in Kerry?
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I say this to clients all the time. Sure, help them out with getting a home but don't tell them where they are to live. There are so many factors that may effect where he wants to live and he may just end up selling it or renting it out. Something that will only upset you and your wife.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Leo said:
If you don't declare the Kerry/Clare house as your principle primary residence, you will likely end up paying investor mortgage rates.
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What would the difference be, % wise? . Also if I didn't declare it how could they find out?


We really wouldn't care, he can do what he likes with it. We will probably rent it out a bit ourselves.. we've not decided this yet though.

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Thanks for all the replies.

There are 2 main reasons for asking what I've asked.
1) Is to have an asset to pass on. We can't afford anything in Dublin
2) We'd like somewhere he can run free a bit, we live in Dublin now, and we have had to take up most of our garden space with a front and back extension, the 1 bed bungalow was converted into a 2 bed + accessible bathroom after he was born.
 
dave29 said:
What would the difference be, % wise? . Also if I didn't declare it how could they find out?
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~2%, perhaps more. You would need to declare that this will be your PPR to the bank, will your solicitor be happy processing a false declaration or will you not tell them either? If you are factoring in your own wages into qualifying for the mortgage, the bank will ask how you intend to maintain your current job from the country home.

If you change the correspondence address from the country home to where you actually live, the bank may ask questions.


dave29 said:
1) Is to have an asset to pass on. We can't afford anything in Dublin
2) We'd like somewhere he can run free a bit, we live in Dublin now
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As earlier, there are savings and investment products that would likely give him more, and certainly a lot more flexibility.

While running free sounds great, what if his memories of childhood trips to the country all involve tending to an over run garden, clearing gutters, painting and other menial maintenance involved in owning a home, particularly one not occupied full time. People get caught up in the romantic notion of a country escape, but unless you can afford to pay someone to maintain the house and gardens, all you will have to look forward to after a long drive is a few hours of cleaning and airing the place out. Why not invest in a tax efficient scheme while going on annual holidays that are just that, holidays.
 
Reactions: jpd
I'm more asking questions, I don't intend to do anything right now.

To answer your questions.
I work from home, So I can work anywhere, We have people all over the world and all over Ireland working.
I've been living in my current home for 10 years and have not updated my address with the bank, It's still goes to my parents home (just around the corner from me)

We have savings for him already, We save about €50/month for him into an account in his name.

Thanks for the advice. I am taking it all on board.
 
dave29 said:
I work from home, So I can work anywhere, We have people all over the world and all over Ireland working.
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Then you stand a much better chance to play this off as your PPR and obtain the lower rate. Just to note, the bank will require a written declaration from your employer that you are permitted to work from home on a permanent basis. There have been reports on here of employers refusing to provide confirmation for fear it could be used against them in the future if they want to cut back on remote working. So just be sure to check that out in advance with your employer and see if they will provide that.

dave29 said:
Thanks for the advice. I am taking it all on board.
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No prob. Human nature is that most of us tend to be optimistic in our outlook and in particular in our assessment of how our decisions will work out. While it might sound like we're all writing off the idea, the goal is to ensure you make a more considered decision and review the cons with appropriate balance.
 
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