letting as a 1st time buyer

K.O.L

I bought a property a 2 and half years ago as a first time buyer i want to let it out now would i have to pay stamp duty on this property now?! can any one shed any light?

Clifford Chance

I don't think so. I think the rules were changed in December of last year and now the time you have to live in the property before letting it out has been changed from five years to two so you should be okay.

jubi lee

as per the revenue's site "Prior to Budget 2008, the period where no rent could be obtained was five years. Arising from Budget 2008, this period has been reduced from 5 years to 2 years for deeds executed on or after the 5 December 2007.
For instruments executed before 5 December 2007, to the extent that a dwelling house or apartment is rented out on or after 5 December 2007, it will not involve a clawback of the relief where this occurs in the third, fourth or fifth year of ownership. "

so you might need to wait 6 months...

MsFifers

jubi lee wrote: »

this occurs in the third,

The O.P. is now in the third year of ownership - so shouldn't they be ok to rent now?

I'm in the exact same situation myself and my interpretation is that as we're now in the third year we could rent without having to pay back the stamp duty.

Janey though - if it wasn't for that piece on the news last night, I wouldn't have known about this at all! I never knew about this stipulation when I was purchasing, and I deliberately bought somewhere with the plan of renting it out in 2 years.

Dr.TV

I am in the same position, and I have called revenue and they have confirmed that it is ok to rent out now without any claw backs. I have looked into a lot of things about how rent out a property. Things like, you need to register new tenants every time someone new comes in and it costs 70 euro to register them. And also you do not get tax relief on your mortgage anymore.
I have had to get an accountant to do my taxes each year as it just looks like so much hassle.
Anyway I have a question or 2 for the floor.
1. Is it ok receiving rent via lodgements/ direct debit to my bank account from my tenant? And do you think that it is ok giving out my bank account number to someone like that? Would you call out each month to give your tenant the receipt (and also check up on the state of the apartment/home while I was there) or would you post it out.

2. My next question is about the TV licence. As the landlord do I have to pay for the TV licence, or do I leave it up to tenants?

Cheers All

uberwolf

Dr.TV wrote: »

2. My next question is about the TV licence. As the landlord do I have to pay for the TV licence, or do I leave it up to tenants?

Cheers All

this would depend on the arrangment with your tenants. I would expect it was there responsibility typically, as with all over household bills

Victor

Dr.TV wrote: »

I am in the same position, and I have called revenue and they have confirmed that it is ok to rent out now without any claw backs. I have looked into a lot of things about how rent out a property. Things like, you need to register new tenants every time someone new comes in and it costs 70 euro to register them. And also you do not get tax relief on your mortgage anymore. I have had to get an accountant to do my taxes each year as it just looks like so much hassle.

You can write off the mortgage interest as an expense.

1. Is it ok receiving rent via lodgements/ direct debit to my bank account from my tenant? And do you think that it is ok giving out my bank account number to someone like that? Would you call out each month to give your tenant the receipt (and also check up on the state of the apartment/home while I was there) or would you post it out.

If you want, set up a separate bank account for the rent and whatever expenses you have. It make it easy for the accountant at the end of the year. Keep a float in it, so if the tenant is late with the rent, you suddenly won't have the problem of not being able to pay the mortgage. No need to issue receipts in person, post them or drop out every 2 or 3 months with them. Make an appointment before calling, its not your home anymore. If you want, visit after the first month, but them only eery 3 months or so.

2. My next question is about the TV licence. As the landlord do I have to pay for the TV licence, or do I leave it up to tenants?

Don't provide a TV and leave if for the tenant to sort the licence. Everything else is variable, so leave it to the tenant. Put it in their name. Consider including the refuse collection in the rent, as it is your repsonsibility.

MsFifers

Who do you have to register the tenants with? Is it with revenue? Thanks.

I wouldn't have thought of that - I need to do a lot of research I think!

Victor

MsFifers wrote: »

Who do you have to register the tenants with? Is it with revenue? Thanks.

www.prtb.ie

MsFifers

Victor wrote: »

www.prtb.ie

Excellent - thank you.