notfromhere
Registered User
- Messages
- 4
The first thing that jumps out is they may be happy to rent the OP seams to want to help them provided the look at the world through OP eyes,It may be your take on it, but the reality is quite different in the world we live today. The person trying to help another is trying to do so within the law.
I agree if you offer help don't expect anything back it may not work out like OP thinks ,The OP has said they will 'offer' to help, nothing wrong with that.
notfromhere, do you have a spouse/partner/child with whom you could be joint owner of the property and does your relative likewise have a partner? You could gift multiples of the €3,000 per annum tax- free threshold for gifts if this is the case, it might be sufficient to cover the imputed rent.
You also need to take into account If anything happened to you will the people receiving your estate be happy to continue the agreement,Thanks for everyone's replies.
I'm definitely in the working out what is feasible / legal / cost-effective stage at this point. I want to make sure that if I offer help in a particular way that it is actually something I can follow through with. Last thing I want is to offer to do x,y or z and then find out later that it isn't feasible
Will definitely be getting legal advice and putting things in writing before finalising things - have listened to enough horror stories!
I do know my relative is unhappy that they will never own their own home. I am not sure as yet whether it is because of the downsides associated with renting long-term or whether it is actually because of not "owning" your home if you know what I mean. If it is the latter, then my proposal may not be acceptable to them.
Another setup that I thought might work is that I charge rent based on the ongoing costs of home ownership + 20% non-resident landlord tax. This would be less than the 33% CAT rate and the discounted rent amount would then be subjected to the CAT and could avail of the €3,000 annual tax-free + group thresh-holds. This arrangement would still see me making no income from this purchase so should not need to be declared on my income tax.
Why don’t you just give them a mortgage?
If they end up becoming bankrupt then I can more or less kiss that money goodbye.
Without going into the backstory of why I would like to help them or why they need help, the summary is that they are currently in a financial position where their debts are such that they are unable to fund a mortgage and are therefore stuck renting indefinitely.
they are currently in a financial position where their debts are such that they are unable to fund a mortgage and are therefore stuck renting indefinitely.
The system works against decent people. If you buy a house and rent it to them at say 70% of market rent. If they move on, you will be stuck with that rent for the new tenant.
I had assumed that they were a good risk but the banks were turning them down because of a bad record.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?