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Renting Property to pay Mortgage

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  • 15-03-2016 8:55am
    #1
    katy39
    Registered Users Posts: 117 ✭✭


    If I was to rent my property to pay Mortgage and go live with my parents
    ( Im in negative equity and bank are after me ) would I still get my 188 a week dole money ? and would this be allowed by lender BOI and the dole ? Its a 1bedroom flat.
    Thanks


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    #2
    L1011
    Registered Users Posts: 68,905 ✭✭✭✭L1011


    It is likely to impact your social welfare payments

    Your mortgage rate may be dependent on it being owner occupied.

    You would need to be taking in s significant amount more than the mortgage to actually cover it after tax and other expenses


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    #3
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    As above. Rent collected counts towards your personal income and is taxable. So not only might it affect your ability to collect social welfare, you will have to ensure that it's not costing you even more in the long term.

    Can you come to an agreement with the bank to sell the property and walk away? That way you can live with your parents and be free of the millstone around your neck.


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    #4
    StanleyOllie
    Registered Users Posts: 82 ✭✭StanleyOllie


    You would probably be better getting people in to rent a room... or 2!


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    #5
    Goat Paddock
    Banned (with Prison Access) Posts: 84 ✭✭Goat Paddock


    Superceeded


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    #6
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,407 Mod ✭✭✭✭Gumbo


    katy39 wrote: »
    If I was to rent my property to pay Mortgage and go live with my parents
    ( Im in negative equity and bank are after me ) would I still get my 188 a week dole money ? and would this be allowed by lender BOI and the dole ?
    Thanks

    Rent out individual rooms.
    Max income 12k per year tax free. Don't go one penny over this and then the whole income is taxable.

    If you rent out completely, it is classed as an income, but you can offset your tax credits etc against it, you will do well to make a small profit each month after taxes.


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    #7
    Mrs OBumble
    Registered Users Posts: 25,966 ✭✭✭✭Mrs OBumble


    seamus wrote: »
    As above. Rent collected counts towards your personal income and is taxable. So not only might it affect your ability to collect social welfare, you will have to ensure that it's not costing you even more in the long term.

    Check this with Welfare: it may not be 100% correct. (AFAIK rents collected count towards your taxable income, but not towards your assessed assets, which is what affects your dole eligibility. When I last researched it, the latter are based on the nett of your property value and debt levels.



    StanleyOllie wrote: »
    You would probably be better getting people in to rent a room... or 2!
    Goat Paddock wrote: »
    Yeah you can get €12k a year from the rent a room scheme without being liable for tax.
    kceire wrote: »
    Rent out individual rooms.
    Max income 12k per year tax free. Don't go one penny over this and then the whole income is taxable.

    :rolleyes:

    The OP has told us it's 1brm! Can't see too many house-sharing folks happy with having the OP sleeping in the lounge, which is what he'd have to do to claim rent-a-room.


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    #8
    Goat Paddock
    Banned (with Prison Access) Posts: 84 ✭✭Goat Paddock


    Mrs OBumble wrote: »
    :rolleyes:

    The OP has told us it's 1brm! Can't see too many house-sharing folks happy with having the OP sleeping in the lounge, which is what he'd have to do to claim rent-a-room.
    :rolleyes::p

    OP edited the post after our initial posts!


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    #9
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    While putting people in the presses is never a good idea, which I assume what people are suggesting with rent a room, tax free does not mean it goes undeclared. As such it may also affect social welfare.


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    #10
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Goat Paddock wrote: »
    :rolleyes::rolleyes::p

    OP edited the post after our initial posts! Could rent it out at €1k a month under the scheme and move out and avoid any tax on it..although the rules state it must be your primary residence.

    No you can't.


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    #11
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,407 Mod ✭✭✭✭Gumbo


    Mrs OBumble wrote: »
    :rolleyes:

    The OP has told us it's 1brm! Can't see too many house-sharing folks happy with having the OP sleeping in the lounge, which is what he'd have to do to claim rent-a-room.

    The OP edited their post after our posts, so obviously the rent a room is out of the option list now.


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    #12
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Social Protection have to take outgoings as well as income into account in assessing means. Given that the repayments are likely more than the rent, particularly if there are arrears, the income won't be an issue. What might cause a problem is that the o/p will be joining another household and the means of the new household i.e. his parents will be reckoned.


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