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Buying brother's house

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  • 02-06-2015 11:20pm
    #1
    ohdannyboy
    Registered Users Posts: 9 ✭


    My brother owns a house next to my parents, which he currently rents. I am trying to engineer a move home and have spoken to him about me buying his house as he has no intention of living in it long-term himself and would be pleased to see me and family in it.
    I currently have 2 investment properties in my name which are paid up but still in negative equity. I haven't approached a bank about a mortgage but am wondering are they likely to be open to some arrangement. I have some savings but not 20%. My income and my wife's is good enough but this move would change things a bit that way. My idea is now to rent from my brother and save. I think he would like the remaining balance of 163k variable rate mortgage paid and then recoup the 25k or so he put in to it originally. It's a smashing family home. The market value would be less than that but if I don't buy, he will keep renting it out with a view to it increasing in value down the line.
    If he gifts me the house, some CAT is payable I know, but what happens the mortgage in that event?
    Any advice welcome.
    Thanks


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    #2
    GerardKeating
    Registered Users Posts: 7,652 ✭✭✭GerardKeating


    ohdannyboy wrote: »
    My brother owns a house next to my parents, which he currently rents. I am trying to engineer a move home and have spoken to him about me buying his house as he has no intention of living in it long-term himself and would be pleased to see me and family in it.
    I currently have 2 investment properties in my name which are paid up but still in negative equity. I haven't approached a bank about a mortgage but am wondering are they likely to be open to some arrangement. I have some savings but not 20%. My income and my wife's is good enough but this move would change things a bit that way. My idea is now to rent from my brother and save. I think he would like the remaining balance of 163k variable rate mortgage paid and then recoup the 25k or so he put in to it originally. It's a smashing family home. The market value would be less than that but if I don't buy, he will keep renting it out with a view to it increasing in value down the line.
    If he gifts me the house, some CAT is payable I know, but what happens the mortgage in that event?
    Any advice welcome.
    Thanks

    He could not "gift" it to you, without clearing the mortgage.


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    #3
    ohdannyboy
    Registered Users Posts: 9 ✭ohdannyboy


    Thanks Gerard. That makes sense.


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