Our primary reason would be to help our kids get on the properly ladder in the future, say in 10 years time And until then, to provide us with some income in retirement.
Interesting point Brendan, thanks for replying . A quick google shows me this.I don't think that investing in property is a good vehicle for this.
It does have the advantage of acting as a hedge against the future cost. So if property prices double over the next ten years, while the cost to your children will double, your asset will have doubled.
But apart from that, it's a very bad idea.
It would be much better to invest in a portfolio of shares.
- Being a landlord in Ireland is just not a good idea - you get a bad tenant and you can do very little about it.
- It is an illiquid investment. It could take 6 months to sell and your child might want to move quickly.
- It is an all or nothing investment. If you have a property worth €400k and you want to give a child €100k, you have to sell the whole property.
The other advantage of shares over property is that you do not have to take out a mortgage.
- The return from shares should be better than property over most ten year periods
- It is a no hassle investment
- It is very liquid. Sell today and you will have the cash in two days.
- You can liquidate part of your portfolio if you wish.
Brendan
How many kids do you have and how old are they?
I think it's a good idea, especially if they lived in the house while at college.
They could earn up to €14k a year tax-free by taking in flatmates.
And ultimately you could give them the house using the dwelling home exemption.
Yes I agree... Wouldnt think of it at the minute , but it's an interesting idea for when when they are older. re Are you planning to potentially sell the property in the future or give ownership to adult dependents" Nothing concrete in mind, more just to have optionsJust to be clear that it would be your adult dependent that would be applying for the max 14k rent a room and would have to be living in the property.
Its quite a large responsibility to put in an 18 or 21 year old to police roommates in such a situation.
You are also constraining their options in some ways. What if they want to do a particular degree or masters vourse and modt suitable is run out of say cork?
Are you planning to potentially sell the property in the future or give ownership to adult dependents?
Are you set up yourselves in case of sny issue or change of circumstances in your own situation? Say if one person needs nursing home care years down the road?
Yes I agree... Wouldnt think of it at the minute , but it's an interesting idea for when when they are older. re Are you planning to potentially sell the property in the future or give ownership to adult dependents" Nothing concrete in mind, more just to have options
Are you set up yourselves in case of sny issue or change of circumstances in your own situation? Say if one person needs nursing home care years down the road? Havent given it any thought at all, but a quick answer would be that we would (have to and be happy to) avail of the Fair Deal scheme.
We live in Dublin ourselves, and the eldest goes to college in Dublin, and probably the youngest will too.
A quick google shows me this.
And would other spouse have sufficient income if that situation did arise?
Personally i think you should keep your assets liquid.
If you really want to help your adult dependant save for house maybe start availing of 3k pa gift from each parent.
I think your intent is good here but you are now taking on more debt and tying up your savings. "We would be using up all our savings to to fund the remining €360K"
Honestly this is a bit of a mad situation to put yourself and family in. It could get very messy and costly.
Is there a specific reason that you feel the need to fund this? Is there some likelihood that they msy not be able to.support themselves? If so you may want to look at other options.
And would other spouse have sufficient income if that situation did arise?
Personally i think you should keep your assets liquid.
If you really want to help your adult dependant save for house maybe start availing of 3k pa gift from each parent.
I think your intent is good here but you are now taking on more debt and tying up your savings. "We would be using up all our savings to to fund the remining €360K"
Honestly this is a bit of a mad situation to put yourself and family in. It could get very messy and costly.
Is there a specific reason that you feel the need to fund this? Is there some likelihood that they msy not be able to.support themselves? If so you may want to look at other options.
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