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House Problem

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  • 31-01-2011 6:30pm
    #1
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭


    Hello there, hope somebody can help.

    Myself and the missus bought a house right before the crash (dont get me started).

    Since then we have had two kids one boy more girl.
    The house we bought was a small two bedroom and pefect for two of us but now is way too small for the four of us.

    Now the way the house is we have no hope of an extention or an attic conversion so we are stuck with a shoebox house which is worth half of what we paid.

    We need a bigger place asap.
    Has anybody ever rented their house out and rented a bigger one in the same area?

    This problem is effecting us in a big way and has started to even affect my health.

    Any help would be great.

    Thanks.


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    #2
    Ickle Magoo
    Closed Accounts Posts: 17,485 ✭✭✭✭Ickle Magoo


    Moved from PI...


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    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Fred Zeppelin1977 wrote: »
    Hello there, hope somebody can help.

    Myself and the missus bought a house right before the crash (dont get me started).

    Since then we have had two kids one boy more girl.
    The house we bought was a small two bedroom and pefect for two of us but now is way too small for the four of us.

    Now the way the house is we have no hope of an extention or an attic conversion so we are stuck with a shoebox house which is worth half of what we paid.

    We need a bigger place asap.
    Has anybody ever rented their house out and rented a bigger one in the same area?

    This problem is effecting us in a big way and has started to even affect my health.

    Any help would be great.

    Thanks.

    We're in a similar position ourselves- as are about 38,000 other couples, who bought property that suited their immediate needs- but is no longer suitable. Despite the fact that we bought 10 years ago- we're in considerable negative equity. On the bright side- we are able to pay the mortgage- but thats clutching at straws to find a bright side......

    If you rent out your PPR- you cannot offset the rental income against renting another property- which is an unfair anamoly in my opinion. Your rental income is taxed as rental income, less any allowable costs (which used to include mortgage interest at 100%- but this has now been reduced to 75% with the prospect of further reductions in future)........

    Unfortunately- as we have discovered- its a case of put up and shut up- until such time as you manage to sell the property- and you have to accept that you're going to make a loss on it. EBS were offering negative equity mortgages for people in your or our position, for a brief period of time before they were nationalised- however there are no lenders currently offering these sort of packages in the Irish market.........

    Your best bet- is to canvas the politicians when they knock on your door- but we're all in trouble..........


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    #4
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    Fred, if you want to post anonymously, post on the PI forum and ask them to move it here.

    I don't think there is much help available, but you might contact the housing department in your local council, explaining the property is no longer suited to your needs.


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    #5
    ricman
    Closed Accounts Posts: 1,559 ✭✭✭ricman


    You can get advice from threshold or centrecare,My friends mortgage is ten k, Her rental income is 8k, so she pays no income tax,as she s making no profit on the house.BUT you have to fill in tax,self assessment forms for the revenue ,ie declare your income ,even if the profit is zero.


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    #6
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    ricman wrote: »
    You can get advice from threshold or centrecare,My friends mortgage is ten k, Her rental income is 8k, so she pays no income tax,as she s making no profit on the house.BUT you have to fill in tax,self assessment forms for the revenue ,ie declare your income ,even if the profit is zero.

    Ricman- just to reiterate- you do not need to be making a profit on the house to generate a tax demand...... If your allowable expenses are less than your income (the big one being mortgage interest)- irrespective of whether you're in a profit or loss situation- you owe the revenue commissioners money.....


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    #7
    John_Cultane
    Closed Accounts Posts: 41 ✭John_Cultane


    I doubt the housing authority will help you. People raised kids in small houses for a long time. You may feel the house is too small but in relative terms it won't be seen as that bad. As pointed out you have to be making a profit to pay tax so you could try to rent out and rent another place for your self. The problem is that will cost a fair amount of money.

    You will probably be better off financially staying where you are until things improve. Try to not let it take over your life and make the best of the situation. It would be cheaper to try and use space saving options such as wall beds and the like. I am amazed out how people can cleverly use space in other countries.


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