Part Exchange House

mcclaffs

Does anyone know of any person who wants to get rid of some property. I currently own a 4 bed semi in tuam town, Galway but want to move to a detached house with some land in the countryside. I want to offer my house as a part exchange plus cash so if you know someone who wants a rentable asset plus cash let me know. The desired property would be a 4 bed minimum with a shed within 15 - 20 miles of Tuam but all things will be considered.

Look forward to getting some feedback

D3PO

Why would anybody bother ?

Geniune question. I never understood this part exchange, house swap rubbish. Talk about narrowing your potential options.

Sell & then buy.

mcclaffs

Thanks, but if it were that simple wouldn't I already have done that??? My situation is unique in the fact I can afford a bigger mortgage and am looking for someone who wants to downsize their house and get cash as part of the deal.

D3PO

mcclaffs wrote: »

Thanks, but if it were that simple wouldn't I already have done that??? My situation is unique in the fact I can afford a bigger mortgage and am looking for someone who wants to downsize their house and get cash as part of the deal.

Right but my point is I dont understand the logic

Lets assume I have the larger house and want to downsize. There is no benefit in me doing a part exchange deal.

If the house is worth 300k on the open market then its worth 300k in a part exchange. Only difference is I dont have the choice of where Im "buying"(exchanging)

mcclaffs

Ok Lets assume you have the larger house valued at 300k and your life situation means you can no longer afford to keep the house. It has been on the market for months but nobody is buying it because our banking system has crippled the economy and the most you are being offered is 220k. My offer is to part exchange a rentable asset plus a lump sum of money. You get closer to the value you were looking for plus a resellable asset (if the market ever improves) plus cash in hand.

I agree its not for everyone but I am certain there are people out there who are looking for a similar deal. I have recieved a few PM from interested parties already.

The_Conductor

mcclaffs wrote: »

Thanks, but if it were that simple wouldn't I already have done that??? My situation is unique in the fact I can afford a bigger mortgage and am looking for someone who wants to downsize their house and get cash as part of the deal.

The reason this doesn't happen anymore- is up until 2006 you could exchange property (wholly or partially) with another party without triggering a taxable source of income. Post 2006 any property exchanges are dealt with as 2 separate taxable transactions, triggering stamp duty and or capital gains on either or both transactions.

It used to be a great idea- and I know several people who availed of it in the past- unfortunately its an avenue that has for tax reasons almost totally closed off.