Mortgage help or advice

D3PO

OP are you not reading the posts ?

Firstly it wont be 600 a month or even close. Try close to double that (considering he still owes 30k on the house) and your in a better ball park and that's considering record low interest rates. Which will be going only one way and that is up.

What about the significant tax liability you will have when the house is transferred to you which you have ignored in my last post ? How do you figure to cover that ?

What about ancillary costs, life insurance, property tax, house insurance, legal fees etc etc(both for purchase and then a second set of legal costs for transferring the property into your name)

what if your parents get ill or have an unexpected expense ?

this is absolute madness and as nice as your father is being for you to even consider it would show a complete lack of respect to their wellbeing. take off the rose tinted glasses.

Electric Sheep

robanemma wrote: »

yes but we are not stretching ourselves ..I will have to pay 600 euro a month one way or another ..whether that be paying rent for a mortgage on someone else,s house or a mortgage my da gets for ourselves

I wonder if Irish people will ever grow past the "paying someone else's mortgage" view.:rolleyes:

OP, you are paying 600 a month rent, and while doing that, you say you can't afford to save. In that case, how will you handle all the incidental expenses that come with home ownership? Your landlord pays for them now, but you will have to when you own a house.

Stheno

Electric Sheep wrote: »

I wonder if Irish people will ever grow past the "paying someone else's mortgage" view.:rolleyes:

OP, you are paying 600 a month rent, and while doing that, you say you can't afford to save. In that case, how will you handle all the incidental expenses that come with home ownership? Your landlord pays for them now, but you will have to when you own a house.

And just to give an example of that, in one of the worst cold snaps we had in the past few years, my gas boiler went.

Almost 2,000 euro to get it replaced or freeze.

D3PO

Electric Sheep wrote: »

I wonder if Irish people will ever grow past the "paying someone else's mortgage" view.:rolleyes:

OP, you are paying 600 a month rent, and while doing that, you say you can't afford to save. In that case, how will you handle all the incidental expenses that come with home ownership? Your landlord pays for them now, but you will have to when you own a house.

The OP cant afford it. He's being foolish to believe otherwise and worse than that is that going down this road would be foolish and selfish of him.

Stheno

D3PO wrote: »

The OP cant afford it. He's being foolish to believe otherwise and worse than that is that going down this road would be foolish and selfish of him.

Just thinking back to when I bought my house back in 1999, OP you need to consider the cost of furnishing the house, decorating it, appliances (not cheap, if it's new you may need fencing/work on the garden, and it all adds up.

Then deposits for all the bills (esb/gas are about €200 each to get you set up), it all adds up to a lot more than just the cost of buying the house.

The_Morrigan

I'm paying back a principal amount of 238k over 35 years... I'm a few years into that and with mortgage repayments and all the associated costs I'm paying out it comes to about 1800 a month, that is before I start looking at utilities or feeding myself, never mind putting a partner and kids into the equation like you must. OP you really don't seem to comprehend the costs here, you are probably going to have to think about all the costs, not just the rent you will give your Dad.

Electric Sheep

Stheno wrote: »

And just to give an example of that, in one of the worst cold snaps we had in the past few years, my gas boiler went.

Almost 2,000 euro to get it replaced or freeze.

Oh god yeah, SOMETHING is always needing to be fixed. Often, several things at once, seems like when it rains it pours. Until you actually own a house you have no idea how much just plain maintenance can cost.

I know it's hard not to brush off the downside when you think you have found a solution to a problem, but you don't really have a problem. You are renting a house you love and can afford. If you don't qualify for a mortgage, that means you can't afford to buy a house right now, so sit tight, try to save, and when the economy improves houses will still be there to be bought.

Best of luck with whatever you decide!

robanemma

there is other houses in our town ..nice big houses come furnished and everything for 70 thousand would a mortgage of dat size still be a huge risk

MagicMarker

robanemma wrote: »

there is other houses in our town ..nice big houses come furnished and everything for 70 thousand would a mortgage of dat size still be a huge risk

No, that's fine. Go ahead sure.

MouseTail

Yes, for your father its a huge risk, and a very silly and ill advised thing to do.
For you, no risk at all.

okiss

At the moment you can't afford to save for a deposit for a mortgage.
You are paying a rent of €600 per month.
Your mortgage payments would be higher than €600 per month. Along with this you would have the costs for household maintance along with the costs to repare or replace any house hold items like the cooker or fridge ect.
At the moment with renting your landlord has to cover the cost of the above.

Your father may think that he is doing your a favour but if things go wrong he could end up losing his house. At this stage of his life your father should be paying off his mortage or putting money towards his savings/pension and not getting into further debit.

You need to realise that you can't afford a mortage at the moment.
Why not look up consumerhelp.ie and use there budget planner to help you save money.

Mrs OBumble

OP, with your current situation - are you on the council housing list? If no, they why not? If you get a council house, stay in it for X years and then have the option to buy, then you will be in a far better situation, without exposign your father to the risks.


Also, a point no one has raised: you say that you will be paying your father E600 per month for rent. Now presumably that will be taxable income for him - sure he can write some expenses off (some of the interest - for now, maintenace, etc), but on his salary it's likely he will pay close to E300 per month of that in tax. (Unless I'm very mistaken about the tax laws - maybe someone else can comment?)

robanemma

my dad had the meetin with the bank,,they will give him 85000 to buy a 2nd home here are the conditions..he continues to pay the remaining of his own mortgage of 850 a month for 3 and a bit years..The mortgage for the home we will buy will be 510 a month for 20 years ..very managagble were going to own our home while in the process be paying less rent

SeventySix

robanemma wrote: »

there is other houses in our town ..nice big houses come furnished and everything for 70 thousand would a mortgage of dat size still be a huge risk

If you can get a nice big furnished house for 70,000 why get your dad to borrow 85,000? If you are determined to do this then go back and get your dad to lower the amount. It will reduce the risk and the payments a bit anyway. 510 is only the repayment amount at the current low interest rates and dont forget about all the other expenses. Dont borrow more than you absolutely have to. You and maybe your dad would live to regret it.

henryd65

D3PO wrote: »

Its not as straight forward as that.

There is a taxable liability on this as you are only allowed one 30k gift tax free. So when the house is signed over your going to have a hefty tax bill which you wouldn't be able to afford (if you cant save a deposit you cannot pay this tax bill)


Just wondering where the taxable liability is here. A parent can gift to their child up to eur 225,000 tax free.

Is there another tax liability ?

D3PO

henryd65 wrote: »

D3PO wrote: »

Its not as straight forward as that.

There is a taxable liability on this as you are only allowed one 30k gift tax free. So when the house is signed over your going to have a hefty tax bill which you wouldn't be able to afford (if you cant save a deposit you cannot pay this tax bill)


Just wondering where the taxable liability is here. A parent can gift to their child up to eur 225,000 tax free.

Is there another tax liability ?

My bad I read the table incorrectly. Your correct.

I Read the second column as the Disponer rather than the relationship to the disponer.

http://www.revenue.ie/en/tax/cat/thresholds.html

robanemma

Haha just came across this thread when clearing out my emails ..Thank god we didnt listen to any of yeer advice or we would of been up to ours eyes paying rent of 950 to 1k a month ...We bought a house for 85k after 3bed semi detached on a corner site with nobody beside us on one side .4 years paid off it already .Repayment of 545 a month for 20 years ,the house was put straight into my name on the deeds ..Weve since refurbished it to the value of 40k even though it wasnt necessary ..Estate agent called the other day to do a estimate said listen if your ever thinking about selling ill get you 200k for that house its immaculate ..Our dream was to always own our own house if we had to listen to this negative thread it might of never happened ...My dads mortgage is finished oon his own
and the only noose around his neck is how many times he can get to elland road for the football every year now that is a noose