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Advice on Mortgage Interest Relief

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  • 13-06-2012 11:08pm
    #1
    rocketman2010
    Registered Users Posts: 23 ✭


    I recently got a property transferred into my name by a family member.

    The house is basically a shack and needs complete gutting and renovation.

    With house prices in my area offering particularly good value at the moment I was going to buy a house/home to live in as I am renting.

    My question is will I not be classed as a first time buyer (for MIR purposes) If i buy a house because of the fact I now own another house? Even though I have never lived in this house?

    I would like to do buy and maybe in a few years renovate the old house and rent it out?

    I could always renovaate old house and live in it now but it is small and might not be big enough down the line so Im afraid I will end up buying again in a few years and house prices will have gone back up?

    Any advice on situation appreciated


Comments

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    #2
    Rightadvice
    Registered Users Posts: 11 ✭Rightadvice


    Hi,

    As you now own a property, you are no longer a first time buyer when it comes to buying another property.

    Is there a mortgage on the current property? is tras being claimed on it at present? some more info here...http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html

    hope it helps

    Regards,

    Robert


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    #3
    rocketman2010
    Registered Users Posts: 23 ✭rocketman2010


    Thanks Rightadvice,

    I contacted Revenue directly and they told me that because I don't/never had a mortgage on my current property then I would be entitled to tras if I was to take out a mortgage. This is the understanding I also got from the revenue webite.

    Is there any other advantage/disadvantage of not being classed as a First Time Buyer?

    Thanks


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    #4
    Rightadvice
    Registered Users Posts: 11 ✭Rightadvice


    no once the revenue have confirmed you are ok to claim tras there should be no dis-advantage. The stamp duty on the property you buy should be 1% (up to 1million 2% after that).

    Assuming there is no mortgage on the current property & you have no financial commitments to it, it should not affect your mortgage application.

    I offer a mortgage service & deal with the main lenders in ROI, so if you ever need any help with it you can visit www.rightadvice.ie my contact details are there also.

    Regards,

    Robert


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