Stamp Duty

P

PrivateI

Registered User
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I am purchasing two new houses at the moment.

Hse A: 630,000 holiday home which will be let out for some of the year.

Hse B: 380,000 I will live here most of the time.

Can I reduce my S D liability by designating the more expensive house as my PPR and the cheaper one as an investment property?
 
PrivateI said:
Can I reduce my S D liability by designating the more expensive house as my PPR and the cheaper one as an investment property?
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No. You cannot 'designate' a property as your PPR just to save tax-it must be your PPR.
 
I have different scenario , I am living at my PPR for the last 2 years , want to buy a new appartment in the same area for me to be used when my folks come over from my home country and visit me . I won't charge them any rent of course but they might stay total of 3-6 months every year , the rest of the year I am not sure what I am going to do with it , but most probably I won't rent it . When they come to Ireland I will be staying most of the time with them in my second appartment . Note that I have someone renting the other room in my current appartment .
Question is : How revenue will look at this situation ? Is it considered an investment property or a second PPR ? Shall I be liable to SD or I am considered as owner occupier in case it is new and bellow 125sm
Appreciate your feedback
hak
 

You can only have 1 PPR. Everything after that is therefore irrelevant.
 
hakouna said:
IHow revenue will look at this situation ? Is it considered an investment property or a second PPR ? Shall I be liable to SD or I am considered as owner occupier in case it is new and bellow 125sm
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You will pay stamp duty.
 

Hakouna

I presume from tha above that you are in a 2 bed - and are considering buying another 2 bed.

The second apartment being only to house visitors, with nothing to cover a mortgage or lost opportunity on the funds (not earning interest) is madness in my opinion (unless you are mega rich). Bear in mind that you cannot rely on capital appreciation. If you did consider renting i'd suggest also that it is difficult to rent properties for short term lets

If you want to own somewhere that family can stay, then rather than getting a second property have you considered trading up? Sell your current property - which as your ppr will incur NO Capital gains tax - and then buy a 3 or 4 bed property. This way you still get to rent out 1 or 2 of the rooms and also have a spare for when your family visit.

In addition in this situation you become an owner/occupier, thus Stamp duty will NOT be payable where the house is NEW and below 125 sq mt.

Although I am not sure that a new build is always a better option than second hand - you should compare overall costs - as where I live new builds in the complex are looking for 500k for a 3 bed whereas, second hand 3 beds (maybe a small bit smaller) incl stamp - are around 420k

Are there 3 or 4 beds where you live to consider this?

Paddy
 
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