Landlords should swap properties?

Brendan Burgess

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So Johnny has an apartment with a market rent of €2,000 a month let out at €1,000 a month worth about €400,000.

Mary has an apartment (maybe even in the same building) with a market rent of €2,000 let out at €1,000 worth about €400,000.

Johnny terminates the tenancy as he wishes to sell.
Mary terminates the tenancy as she wishes to sell.

Johnny buys from Mary and relets it after 1 March for €2,000 a month.
Mary buys from Johnny and relets it after 1 March for €2,000 a month.

They will pay €4,000 each in stamp duty and maybe another €4,000 each in legal costs.

The market rules.

Any downsides to this strategy?
 
CGT will disappear on death won't it, so it all depends on the long term plans for the investment property. So if the intention was eg to sell to fund retirement, then CGT was expected to be paid. If it was intended to be passed down as part of an inheritance, then it might have been ignored. Though the recipient might end up paying CAT on their inheritance.
 
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I think that is doable.

CGT will be a cost, but they might be each entitled to the relief for purchases made in or around 2014.

Otherwise it is just stamp duty and conveyancing fees.

Maybe an estate agent should set up a landlord matching up service
 
T McGibney said:
Or the rate falls. Or they relax the rules, for example the long-overdue reintroduction of indexation relief.
Click to expand...
Or the property reverts to being/becomes a PPR (including under the "dependent relative" rule if/where applicable) and any effective CGT liability gradually diminishes over time?
 
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