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Rent Allowance Scheme

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  • 15-06-2010 10:32am
    #1
    Eircom_Sucks
    Registered Users Posts: 3,193 ✭✭✭


    hi all

    myself and partner both have our own property's

    herself has a 2 bed apartment in swords and i have a 4 bed house in finglas

    now we'd ideally love to sell one of these but due to downturn we'd be in negative equity , so were planning on renting them out on longterm contracts to Fingal Co Council for 5 years

    we've read all the information on the scheme and what you can expect , good and bad tenants etc

    ive no intention of keeping my house , as soon as markets rise a tad and my house borrowings go down ( hopefully meet each other ) i'll be selling.

    were currently looking at buying a family home because were expecting an addition to the family :) and i dont wanna live in a 2 bed apartment and she doesnt wanna live in finglas which is fine.

    were looking up in ashbourne and found the house we want , just want some peoples ideas on what our best solution is ???

    could i sell my house and take the €30-40k hit and pay that figure over the duration of the mortgage 30 years ???

    or do i rent the house to the social on a lease , least id be gaurantee'd monthly income , my home is a 4 bed and mortgage is 1000 ( including interest relief ) and on a tracker ??

    just so many ideas and want to make best poss choice


Comments

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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    The banks may or may not let you sell at a loss and convert the difference into a personal loan.

    Given your on a tracker theres a reasonable chance they might do this as its probably of benefit to them, but you would ahve to discuss it.

    A few points of note though

    If you rent out you lose your TRS

    If you buy in Ashbourne you will be libel for stamp duty on the purchase as a non FTB

    If you rent out you will most likely lose your tracker and end up on a much higher interest rate for your mortgage.

    You need to check everything out very carefully before you make any decision here as the wrong choiuce could be very costly to you.


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    #3
    Eircom_Sucks
    Registered Users Posts: 3,193 ✭✭✭Eircom_Sucks


    D3PO wrote: »
    The banks may or may not let you sell at a loss and convert the difference into a personal loan.

    Given your on a tracker theres a reasonable chance they might do this as its probably of benefit to them, but you would ahve to discuss it.

    A few points of note though

    If you rent out you lose your TRS`( granted )

    If you buy in Ashbourne you will be libel for stamp duty on the purchase as a non FTB ( not if its a new house )

    If you rent out you will most likely lose your tracker and end up on a much higher interest rate for your mortgage.( yep i know that )

    You need to check everything out very carefully before you make any decision here as the wrong choiuce could be very costly to you.( goes without saying )


    cheers mate


  • Options
    #4
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    The banks may or may not let you sell at a loss and convert the difference into a personal loan.

    Given your on a tracker theres a reasonable chance they might do this as its probably of benefit to them, but you would ahve to discuss it.

    A few points of note though

    If you rent out you lose your TRS`( granted )

    If you buy in Ashbourne you will be libel for stamp duty on the purchase as a non FTB ( not if its a new house )

    Only if its a new house and does not exceed 125 sq. metres (1,346 sq. feet) in size


    Also dont forget if you own for less than 5 years renting will trigger a stamp duty relief clawback on your property in Finglas



  • Options
    #5
    Eircom_Sucks
    Registered Users Posts: 3,193 ✭✭✭Eircom_Sucks


    D3PO wrote: »
    The banks may or may not let you sell at a loss and convert the difference into a personal loan.

    Given your on a tracker theres a reasonable chance they might do this as its probably of benefit to them, but you would ahve to discuss it.

    A few points of note though

    If you rent out you lose your TRS`( granted )

    If you buy in Ashbourne you will be libel for stamp duty on the purchase as a non FTB ( not if its a new house )

    Only if its a new house and does not exceed 125 sq. metres (1,346 sq. feet) in size


    Also dont forget if you own for less than 5 years renting will trigger a stamp duty relief clawback on your property in Finglas

    yeah the new house is 1650 sqf but we've agreed a deal in principle with the estate agent ie lets say the house is 350k we offered him 325k which would allow for cost of stamp , we got more off the house but thats neither here nor there

    im in my current house over 3 years , i'll have to look into the stamp duty thing , just so many things to consider hmmmmmmm thanks again


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