Selling P.P.R. and not replacing it

[stuffit]

I'm thinking of moving back into Dublin from the sticks.

If I sell my current house (it's my only property and my principal private residence) and rent in Dublin, am I liable to CGT?



Thanks

Ste

 

[ClubMan]

If the property was always your PPR and never rented out then no CGT regardless of the fact that you are not replacing it.

Just out of curiosity you're not selling up to rent as a gamble on timing the property market are you?

 

[stuffit]

> Just out of curiosity you're not selling up to rent as a gamble on timing the property market are you?

No, I'm just sick of the 3 hour round trip commute I have to do every day.

Living in Dublin City Centre will give me a chance to de-clutter my life, and decide where I really want to be. Might ultimately move to the UK.

Am not too keen on buying a shoebox sized apartment with a bigger mortgage than I already have. But I will rent one for a year.

I will keep an eye on the party manifestos in the forthcoming general election. Whoever abolishes stamp duty gets my vote. I've already shelled out 31K to date for the privelige of having my mortgage deeds stamped. And I ain't too keen on paying any more ever again.

The thought is at the back of my mind that if property prices crashed Dublin would became more affordable and then I would be ideally positioned for buying. But mostly I looking forward to more free time, better meals out, meeting with friends more often. And ditching the car will save me a fortune.


Ste

 

[irishpancake]

Just out of curiosity you're not selling up to rent as a gamble on timing the property market are you?

The thought is at the back of my mind that if property prices crashed Dublin would became more affordable and then I would be ideally positioned for buying.

So you are deep down attempting to time the inevitable property crash


Also, abolition of SD may not necessarily be a good thing, seeing as Vendors and Delevopers simply pass these reductions straight onto new buyers.

 

[ubiquitous]

I will keep an eye on the party manifestos in the forthcoming general election. Whoever abolishes stamp duty gets my vote.

Be careful if you intend going through with this. Political parties of all hues have for decades used pre-election manifestos to fool people into voting for them - so much so that pre-election promises are regarded as an absolute joke by those of us who are old enough to remember. Last time around, Fine Gael were laughed at when they promised the sun moon and stars to Eircom shareholders, taximen and others. SF/IRAare probably the only party cynical enough to promise to get rid of Stamp Duty next time around but their socialist economics would hardly do much good for the country, or particularly for aspirant homebuyers, if they came to power.

Unless/until the property market cools, any reductions in stamp duty are anyway likely to be pointless from the point of view of property purchasers as vendors will simply hike up prices to compensate - as happened following the 2005 Budget Stamp Duty cuts.