HI all. Looking for feedback on proposal involving swapping properties with my in-laws:
Additional Background:
Numbers:
I’ve posted on here before & took the advice to find another solution which is why we landed on the above proposal tax implications of a property gift | Askaboutmoney.com - the Irish consumer forum
- The Plan: My in-laws want to purchase a downsized property & sell their current PPR to fund it & free up some equity. We in turn, want to purchase the in-laws PPR & sell our PPR. The sale of the in-laws PPR funds the purchase of the downsized property.
- The Reality: My in-laws have identified their ideal downside property. However, the auctioneer seems to have preference for a purchaser not involving a chain & has not accepted a bid from my in-laws. To be transparent, I have not been involved in conversation between my in-laws & auctioneer. We’re reading between the lines…
- Question: To break the chain / accelerate the purchase to address auctioneers perceived concern… Could I buy the ideal property for my in-laws (with cash & small mortgage) and then swap properties with my in-laws along with paying $250k? To be clear, I purchase their €650k PPR with the combination of €250k & the downsized property valued at €400k.
- Alternative solution: Or are there other ways to make this work? Eager to hear different perspectives.
Additional Background:
- My aging in-laws want to downsize and stay in the locality. They are looking for a bungalow that is walking distance from town centre. There are few properties that meet that requirement & even fewer that come up for sale.
- We are keen to purchase my in-laws PPR. Suits our growing family needs with more space inside & outside. We live close to them. However, it will require a lot of work (extension & significant energy upgrading). This will require $ & time.
- If we purchase our in-laws PPR, we can afford to wait to sell our PPR so we can get work done on my in-laws house. But I appreciate that does expose us to a downside risk if there is a housing downturn. So we may just try to sell as quickly as possible to reduce that risk & do the work while we live there.
Numbers:
- In-laws PPR is valued at €650k. No mortgage.
- My PPR is valued at €575k. No mortgage.
- We are mortgage approved for €650k.
- We have €150k in cash. We also have €65k in shares that I can sell now & will have €45k in shares that I can sell over coming 2.5 years.
- Joint income nearly €200k gross.
- In-laws target property valued at €400k.
I’ve posted on here before & took the advice to find another solution which is why we landed on the above proposal tax implications of a property gift | Askaboutmoney.com - the Irish consumer forum