You say the house is worth double what you oringinally paid? So if you were to buy a similar house in today's market, you'd be covering even more of a shortfall, as your mortgage payments would be even greater. Doesn't sound like a good investment to hold on to, to be honest. You could always put it on the market anyway, and if you get an offer in excess of what you think it's worth, might that also please the hubby?We also have to put about €250 to the rent each month to make the mortgage.
Did you pay the stamp duty clawback liability on it when you rented it out within five years of purchase as an owner occupier? Have you factored taxes (SD clawback, income tax on rental income, CGT on some portion of the eventual resale gain of a property that was both a PPR and a rental property etc.) into your calculations/analysis?milly123 said:We only paid 125K for the house 4 years ago and they are now selling for €250 Plus and they are in big demandso i would imagine we would have it sold in a few weeks.
An estate agent is not qualified/authorised to give investment advice and may have a vested interest in telling porkies.Hubby was told by some estate agent to hold off cos property prices will rise a lot next year with the SSIAs.
ClubMan said:CGT on some portion of the eventual resale gain of a property that was both a PPR and a rental property etc.
milly123 said:We only paid 125K for the house 4 years ago and they are now selling for €250 Plus
......
(after clearing mortgage, top up loans, legal fees etc.) would net us about 40K cash
If you buy as an owner occupier and then rent the property out within 5 years of purchase then you are liable for a clawback of stamp duty. This means that you pay the difference between what you originally paid (0% in this case) and what an investor would have paid on the same property. Seems to me that this liability is still outstanding and you need to discharge it as a matter of urgency. Also seems to me that you need independent, professional advice on the tax and possibly other aspects of this situation.milly123 said:Hi Clubman,
We didn't pay any stamp duty, we actually got the FTB grant, just before it was abolished. I figure we will owe about 2,000 - 3,000 tax on rental income each year.
I stand corrected assuming that the property has been rented for less than a year.Howitzer said:CGT won't be liable if she sells within 1 year of it becoming an investment property (1 year - "a few months" from now).
Selling does not obviate the need to discharge the SD clawback liability. GVA's post encouraging tax evasion has been deleted by the way.milly123 said:GVA, i wasn't aware that I could be liable for stamp duty - its just another reason to sell as far as i can see.
Don't expect independent, professional investment advice from an estate agent - friend or not. They are not authorised to give such advice and, in most cases, are not qualified to do so either.milly123 said:I spk to an estate agent friend of mine who said it is a good price, but prices in that area are still increasing rapidly and
I thought that the property was already rented out?she recommended that I try out the leasing for maybe six months.
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