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Renting first house

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  • 10-07-2007 10:53am
    #1
    oxygen_old
    Closed Accounts Posts: 897 ✭✭✭


    Hi. I want to travel and rent out my first house. I know due to not paying stamp duty I can only partake of the rent a room scheme.

    In any case I can rent the house for €600 per month. I can take a hit of a 180 or so on the mortgage a month. This keeps me below the tax bracket that brings me into the investment property. If I am not in the house will the gov raise eyebrows to me renting the entire property to one person and not living in it myself?

    Thanks.


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    #2
    philcsl
    Registered Users Posts: 175 ✭✭philcsl


    I was looking into this myself a few months ago, almost caught the Oz bug..

    If the house is no longer your principle place of residence (PPR) you would be liable for stamp duty clawback which means you would be have to pay stamp duty at the investor rate instead of no stamp duty as a 1st time buyer.

    You can rent a room for up to €635 per month tax free provided it is still your PPR but if you rent the house to a 3rd party within 5 years of taking ownership you're laible for clawback.

    http://www.revenue.ie/revguide/stampduty.htm

    Realisticly if you just leave some bills in your name and have your bank statements etc still going to that address there is very little chance that it would ever be noticed but if it is, be prepared to cough up to revenue...


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