Family buying property

[mango]

Could anyone give me some information regarding this item. My sister, brother and I were considering buying a house together in maybe Athlone or Sligo. We would then rent the house out. We would like to buy a another house after. What will happen in regards to stamp duty and also who will lose the first home buyer grant. Do we all or is just one persons name put on deeds. Has anyone been through this before and is it something that I should consider or not.

 

[ClubMan]

Please post Property Investment queries in the correct forum. I had to move this one manually.

 

[budapest]

Hi Mango,

There is no such thing as a FTB grant anymore.

If you rent out the house, then you will be treated as an investor and won't avail of other FTB benefits e.g. you will have to pay stamp duty at the investor rates.

If you all contribute to the purchase, then all of your names will have to be on the deeds.

In my opinion, it is generally better to buy your own home first before investing in property.

Best of luck,
Budapest

 

[Howitzer]

This sounds like the sort of plan drawn up in a pub over a couple of pints and packet of crisps.

I appreciate everyone has to start somewhere and that's the reason you're posting your question here but take your time and get to grips with all the financial details first. Don't just brush it under the carpet because it seems complicated.

Whilst investing in property has been a one way street for the last 10 years, as it says in the ads, past performance is no indication of future performance. And investing with friends and family is a sure fire way of losing out in every respect if things don't go as planned.

 

[ClubMan]

We would then rent the house out.

You would be investors so.

We would like to buy a another house after.

Owner occupied or investment?

What will happen in regards to stamp duty

Investor SD on the first house.

and also who will lose the first home buyer grant.

No grant anymore as mentioned above but all joint buyers of the investment property will lose their FTB status with regard to subsequent owner occupied property purchases (i.e. lose the ability to claim FTB preferential rates of SD, owner occupier mortgage interest relief etc.)

Do we all or is just one persons name put on deeds.

Depends on what level of risk the joint buyers are willing to take that the single named buyer doesn't fiddle them. Being related is no guarantee that this won't happen!

Has anyone been through this before and is it something that I should consider or not.

There are loads of existing threads on joint purchases of investment properties and investment properties in general that might be worth searching/browsing for.