LastHurrahx
Registered User
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Should he buy the house in his sole name - until such time as they apply for the mortgage??
Many thanks.
You should buy the house in your own name and rent it to him.
When he is in a position to raise a mortgage, he can buy it from you.
It may be difficult if you give him the money now, for him to raise a mortgage on the property. Banks are not big into refinancing.
If you sell it to him for €100k when it has risen in value to €130k, you would be liable to Capital Gains Tax on the increase.
You probably should enter into a contract with him now which obliges him to buy the house from you at today's price in two years' time.
I think Revenue should be satisfied with this and not require CGT. But maybe take advice from a tax advisor on this.
Sorry Brendan, this is crazy "advice"
The "contract" ruse to avoid CGT won't work. If there is significant price acceleration in the meantime, there will be a significant CGT liability.
The OP would face significant income tax bills on the rent received, given the limited nature of deductions available
I have never heard anyone giving that advice. It's only really been a runner since stamp duty was reduced to 1%."When he is in a position to raise a mortgage, he can buy it from you." - common advice in Celtic Tiger times, and we know what happened there.
If there is significant price acceleration in the meantime, there will be a significant CGT liability
Personally I think that could be a recipe for disaster.
Let your son figure it out for himself and dont get involved financiallyat this stage. .
Parents please do not get involved in their house purchase. .
TMc.Gibney said:"When he is in a position to raise a mortgage, he can buy it from you." - common advice in Celtic Tiger times, and we know what happened there.
I think it would be best to leave the young couple work things out for themselves,
Fair enough which is why I did say
"I think Revenue should be satisfied with this and not require CGT. But maybe take advice from a tax advisor on this. "
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