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Affordable Housing Question

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  • 16-08-2007 8:21pm
    #1
    tevion
    Registered Users Posts: 104 ✭✭


    My brother wants to apply for a house under the affordable housing scheme.
    Unfortunately, even at those discounted house prices, he still cant afford one.
    So he has asked me to go half and buy one of these properties with him, which I cannot do, because I already own a property....
    What we were thinking, but not sure if its a good idea and whether or not it would work was, if I was do all the necessary saving for him which is required by the council, ie lodge the 800 euro per month into a saving account for him for a period of time to prove he can handle a mortgage, then when he hopefully gets a property, pay half the mortgage each month for the life of the mortgage.
    The agreement would obviously be, that half the property would be mine, and in 20 years when it can be sold when the clawback is over, I get half....
    The only problem is, the property will always be in his name.
    Would I be mad to consider this or is it possible to do, would there be other implications?


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    #2
    Cantab.
    Closed Accounts Posts: 1,444 ✭✭✭Cantab.


    tevion wrote:
    My brother wants to apply for a house under the affordable housing scheme.
    Unfortunately, even at those discounted house prices, he still cant afford one.
    So he has asked me to go half and buy one of these properties with him, which I cannot do, because I already own a property....
    What we were thinking, but not sure if its a good idea and whether or not it would work was, if I was do all the necessary saving for him which is required by the council, ie lodge the 800 euro per month into a saving account for him for a period of time to prove he can handle a mortgage, then when he hopefully gets a property, pay half the mortgage each month for the life of the mortgage.
    The agreement would obviously be, that half the property would be mine, and in 20 years when it can be sold when the clawback is over, I get half....
    The only problem is, the property will always be in his name.
    Would I be mad to consider this or is it possible to do, would there be other implications?

    Eh, that sounds very dodgy. That scenario which you've written above is most definitely against the law.

    Why should you be exempted from paying stamp duty more than once? How would your brother, after 20 years, transfer 50% of the property's value into your bank account without the tax man knowing about it?


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    #3
    seahorse
    Closed Accounts Posts: 1,164 ✭✭✭seahorse


    I'd be more worried about having a serious falling out with my brother if I were you OP. These things happen and twenty years is a long time to keep a smile plastered on your face and maintain civilities; I think that you both would actually be creating a situation of impending tension and should things go as badly as they possibly could go you'd have no legal recourse as you'd have been breaking the law yourself.

    The situation could very quickly shift from him being beholden you to, to you being beholden to him, so I'd steer well clear if I were you; just thinking about the possible financial fallout would give me the shudders. It would be entirely for my own reasons that I'd stay away from this idea though; as for the government and the laws regarding this issue, I simply couldn't give a hairies. I get robbed by the government every single day; they always strike at the same moment - when I open my wallet to buy a packet of cigarettes.


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    #4
    jdivision
    Registered Users Posts: 4,260 ✭✭✭jdivision


    It's tax evasion. It's illegal. The people running the scheme aren't thick, you have to show a full bank record so it'd become clear that you had been paying the money in. He wouldn't be able to account for it.


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    #5
    jdivision
    Registered Users Posts: 4,260 ✭✭✭jdivision


    seahorse wrote:
    I get robbed by the government every single day; they always strike at the same moment - when I open my wallet to buy a packet of cigarettes.
    Eh the reason the tax is so high is to help pay for your healthcare/hospital bills and those of other smokers later on in life so that the rest of us don't have to pay higher direct taxes. They are in no way robbing you.


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    #6
    seahorse
    Closed Accounts Posts: 1,164 ✭✭✭seahorse


    jdivision wrote:
    Eh the reason the tax is so high is to help pay for your healthcare/hospital bills and those of other smokers later on in life so that the rest of us don't have to pay higher direct taxes. They are in no way robbing you.

    Really? Well then I have to wonder how the governments in all the countries which don't see the need to charge such phenomenal tax on a packet of cigarettes manage to swing it.:rolleyes:


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    #7
    sparkle sparkle
    Closed Accounts Posts: 9 ✭sparkle sparkle


    No,you won't be able to do this as applicants have to provide bank statements, payslips and tax forms. The council ask all kinds of questions in the interview such as where did that €20 euro go from your account and where did that money come from. Your employer also has to fill out a form stating how much you earn in a year. The council will definitley ask where the €800 is coming from.

    Is there no one else your brother could buy with? The only thing is that the other person would also have to be a first time buyer and live in the house with your bro.It's so hard to get a house nowadays.:(


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