How can someone in their 30s afford a house - PLEASE READ MOD WARNING IN OP

antimatterx

CBear1993 wrote: »

Would rather spend my money on travel than any of the above. Seeing the world is something everyone should do IF they can before they have kids and settle down.

No use both sitting in your house in your early 30s with a child and neither of you have been anywhere bar a trip to galway and it's pishing rain. The ones who are extremely tight, miserable bast*rds tend to have a lot of resentment and regret as they get older.

But hey, each to their own. I've met people delighted with themselves who wouldn't know where Dublin airport is never mind what it looks like.

Travel is not appealing to everyone. I see it as a waste of money.

muddle84

Iscreamkone wrote: »

I'll bow to your superior knowledge in this area but it didn't say that on the revenue website re thresholds. Must be in the small print somewhere.

Its in a different section but it does explain it all on revenue's website:
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-aggregation-rules.aspx

CBear1993

antimatterx wrote: »

Travel is not appealing to everyone. I see it as a waste of money.

Why, if you don’t mind me asking?

antimatterx

CBear1993 wrote: »

Why, if you don’t mind me asking?

I just don't see traveling as fun. I feel that it's a stress, and I have no interest in staying in hostels, or **** hotels, so it's going to be expensive.

yourdeadwright

Bandana boy wrote: »

It is not taxed again , there is no tax liability on you when you give away money.

Income though is taxed on the recipient as it is when you get paid for a job or make a profit on selling an asset.

there was tax payed on the money used to pay you every month , its no different.

The house is mine If I give it to my kids there going to get taxed on it that's a load of **** in my opinion ,

In reality even though I paid for it its never really all mine is it because i'm going to die at some stage and then all of a sudden a % of it becomes the governments , They can word it any way they like but they get paid from me handing it down something that iv paid for in full,

Springy Turf

yourdeadwright wrote: »

The house is mine If I give it to my kids there going to get taxed on it that's a load of **** in my opinion ,

In reality even though I paid for it its never really all mine is it because i'm going to die at some stage and then all of a sudden a % of it becomes the governments , They can word it any way they like but they get paid from me handing it down something that iv paid for in full,

Nobody likes tax that they have to pay. I can just as easily say the money I earn is mine, why should the government have it. The stock I sell from my shop is mine, why do I need to give the government 23% VAT from the proceeds of it. The share's I bought with my own money are mine. Why do I need to pay capital gains tax on the profits.

The truth is, inheritance is one of the major factors that causes intergenerational inequality, and the inheritance tax threshold of 300k+ is very high. Apart from the lotto, I don't know of any other ways of getting that amount of money into your pocket tax free (Maybe pension)- and it's purely by luck of how much money your parents have. Not to mention the inherent advantage that comes from coming from a comfortable enough background to have such valuable property in the family in the first place.

Cyrus

Springy Turf wrote: »

Nobody likes tax that they have to pay. I can just as easily say the money I earn is mine, why should the government have it. The stock I sell from my shop is mine, why do I need to give the government 23% VAT from the proceeds of it. The share's I bought with my own money are mine. Why do I need to pay capital gains tax on the profits.

The truth is, inheritance is one of the major factors that causes intergenerational inequality, and the inheritance tax threshold of 300k+ is very high. Apart from the lotto, I don't know of any other ways of getting that amount of money into your pocket tax free (Maybe pension)- and it's purely by luck of how much money your parents have. Not to mention the inherent advantage that comes from coming from a comfortable enough background to have such valuable property in the family in the first place.

Your income is taxed thats fair enough, everyone gets that, that money is needed to run the state and care for the needy, and the lazy :pac:

Vat on items you sell, you arent paying that the consumer is, you are just returning it to the state on their behalf.

CGT is another crock of dung if you bought the shares from post tax income.

CAT is nonsense as well, if you could pass on the family home and then have a cap beyond that maybe but its inherently unfair in dublin where even the most modest of family home will exceed the cap.

muddle84

Cyrus wrote: »

Your income is taxed thats fair enough, everyone gets that, that money is needed to run the state and care for the needy, and the lazy :pac:

Vat on items you sell, you arent paying that the consumer is, you are just returning it to the state on their behalf.

CGT is another crock of dung if you bought the shares from post tax income.

CAT is nonsense as well, if you could pass on the family home and then have a cap beyond that maybe but its inherently unfair in dublin where even the most modest of family home will exceed the cap.

For CGT, you're not taxed on the money you buy them with. If you buy €10k worth of shares and sell them for €10k you don't pay any tax on that. You're only paying tax on the profit you make on the shares. If you buy them for €10k and sell for €12k you're only paying tax on €2k.

yourdeadwright

Springy Turf wrote: »

Nobody likes tax that they have to pay. I can just as easily say the money I earn is mine, why should the government have it. The stock I sell from my shop is mine, why do I need to give the government 23% VAT from the proceeds of it. The share's I bought with my own money are mine. Why do I need to pay capital gains tax on the profits.

The truth is, inheritance is one of the major factors that causes intergenerational inequality, and the inheritance tax threshold of 300k+ is very high. Apart from the lotto, I don't know of any other ways of getting that amount of money into your pocket tax free (Maybe pension)- and it's purely by luck of how much money your parents have. Not to mention the inherent advantage that comes from coming from a comfortable enough background to have such valuable property in the family in the first place.

If you own a shop your selling items to make money profit , Shares are still making money ,

I'm not selling my house or making money on it im just giving it to my children,

Your last point is nonsense kids shouldn't benefit from having parent's that work hard for things ? So as a parent I should just work hard enough for what I need when im alive because when im gone its not fair if I pass it on to my kids,

CBear1993

What countries in the world do you not have to pay all this BS back to the government? We’re a relatively safe, grand country to live in. But always believe it is one of the most corrupt in the world in politics and the economy.

Cyrus

muddle84 wrote: »

For CGT, you're not taxed on the money you buy them with. If you buy €10k worth of shares and sell them for €10k you don't pay any tax on that. You're only paying tax on the profit you make on the shares. If you buy them for €10k and sell for €12k you're only paying tax on €2k.

i am well aware of that, but the money you used to buy the 10k of shares was a little over 20k originally :pac:

Springy Turf

yourdeadwright wrote: »

If you own a shop your selling items to make money profit , Shares are still making money ,

I'm not selling my house or making money on it im just giving it to my children,

Your last point is nonsense kids shouldn't benefit from having parent's that work hard for things ? So as a parent I should just work hard enough for what I need when im alive because when im gone its not fair if I pass it on to my kids,

No, I'm saying it's fair to tax inheritance, not that there should be no inheritance.

The fact that you live there means you are also not liable for capital gains tax. How many tax breaks do you want?

Also, your kids are "making money" when they are given a house.

Cyrus

Springy Turf wrote: »

No, I'm saying it's fair to tax inheritance, not that there should be no inheritance.

The fact that you live there means you are also not liable for capital gains tax. How many tax breaks do you want?

nor are there any tax deductions for a decrease in value.

Springy Turf

Cyrus wrote: »

nor are there any tax deductions for a decrease in value.

Not quite - less of the price of the house will be over the inheritance tax threshold.

In comparison to other countries, there is remarkably little tax on property in general.

Cyrus

Springy Turf wrote: »

Not quite - less of the price of the house will be over the inheritance tax threshold.

In comparison to other countries, there is remarkably little tax on property in general.

who are you suggesting should pay CGT on house appreciation, the owner or the people paying CAT?

THere is little tax on property here, it seems adding a new tax sends the hordes into meltdown, hence our penal marginal rates

very little or no tax on lower incomes, no water charges and not much property tax to speak of outside dublin.

Springy Turf

Cyrus wrote: »

who are you suggesting should pay CGT on house appreciation, the owner or the people paying CAT?

THere is little tax on property here, it seems adding a new tax sends the hordes into meltdown, hence our penal marginal rates

very little or no tax on lower incomes, no water charges and not much property tax to speak of outside dublin.

I don't think CGT should be paid on personal property. I do think it's interesting that a lot of peoples wealth comes from appreciating house values, which is completely tax free. There is really no other asset like that.

I don't think it stands up to have this wealth also be completely tax free when it is passed on.

GreeBo

CBear1993 wrote: »

No use both sitting in your house in your early 30s with a child and neither of you have been anywhere bar a trip to galway and it's pishing rain.

No use travelling in your 20s if you both end up sitting in separate bedsits when you are in the early 30s because you cant afford anywhere to live.


Tl;DR Each to their own.

mickuhaha

As far as I know the Group A inheritance tax threshold is €335,000. This is children of the deceased. You would need a house over that limit for one child to have to pay tax.

Cyrus

Springy Turf wrote: »

I don't think CGT should be paid on property. I do think it's interesting that a lot of peoples wealth comes from appreciating house values, which is completely tax free. There is really no other asset like that.

I don't think it stands up to have this wealth also be completely tax free when it is passed on.

its not wealth you can do anything with if you need to live in it though is it.

yourdeadwright

Springy Turf wrote: »

No, I'm saying it's fair to tax inheritance, not that there should be no inheritance.

The fact that you live there means you are also not liable for capital gains tax. How many tax breaks do you want?

Also, your kids are "making money" when they are given a house.

I will be dead when they get the house so its no benefit to me ,

Its really a death tax , I work hard pay my taxes , Taxed on ownership of a home , pay off my house and when I die the government get a large slice of what iv spent years paying off,

Its also means keeping house prices high is in the interest of the government, Everyone dies so more house's over the limit the better ,

Lux23

Lots of people work hard, but they're not all lucky enough to leave property to their kids, I think you should try and understand how privileged you are in that scenario.

Mike3287

GreeBo wrote: »

No use travelling in your 20s if you both end up sitting in separate bedsits when you are in the early 30s because you cant afford anywhere to live.


Tl;DR Each to their own.

Yeah this notion of late 20s being young and free doesn't seem right to me

Grand to travel up to age 24 or so, after that need to get headown if you don't want to be paying a mortgage at 65

Have plenty of friends in early 30's still travelling in Vietnam etc, don't envy them saving for mortgages and havings kids in late 30's/early 40's

Cyrus

Lux23 wrote: »

Lots of people work hard, but they're not all lucky enough to leave property to their kids, I think you should try and understand how privileged you are in that scenario.

How privileged you are to have bought and paid for your own house ? It’s not privilege it’s hard work

Springy Turf

How much hard work are your kids doing for their sizeable inheritance? An inheritance large enough to buy a house outright. They are the ones liable for tax. It’s not their primary residence, so it’s an asset. If it was their primary residence there would be no tax due at all.

muddle84

Springy Turf wrote: »

How much hard work are your kids doing for their sizeable inheritance? An inheritance large enough to buy a house outright. They are the ones liable for tax. It’s not their primary residence, so it’s an asset. If it was their primary residence there would be no tax due at all.

If the house is gifted or inherited from a parent then it doesn't matter if it's their primary residence or not, its liable for gift/inheritance tax once the value is over €335k. Primary residence only applies to being exempt from capital gains tax when you're selling your primary residence.

Springy Turf

muddle84 wrote: »

If the house is gifted or inherited from a parent then it doesn't matter if it's their primary residence or not, its liable for gift/inheritance tax once the value is over €335k. Primary residence only applies to being exempt from capital gains tax when you're selling your primary residence.

I could be wrong on this - I was referring to the dwelling house exemption:
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-for-dwelling-house/index.aspx

lainey_d_123

Mike3287 wrote: »

Yeah this notion of late 20s being young and free doesn't seem right to me

Grand to travel up to age 24 or so, after that need to get headown if you don't want to be paying a mortgage at 65

Have plenty of friends in early 30's still travelling in Vietnam etc, don't envy them saving for mortgages and havings kids in late 30's/early 40's

Why?

I was unfortunate enough to graduate into the 2008 crisis. It took me absolutely ages to get on my feet. I couldn't afford to travel anywhere in my early twenties. I didn't graduate until I was 22, then I scrabbled around in minimum wage jobs trying to upskill and did a Master's and changed industry twice before saying 'feck it' and heading abroad aged 30, to work and travel.

I'm 35 now and way behind where I thought I'd be, but I've experienced the world a bit, met loads of interesting people, got to know myself and what I'm capable of and what I want out of life.

I'm now saving for a deposit as best I can and still hoping I might even get a chance for kids. I think I did the right thing, and that if I'd married my ex and had kids at 28-29, I'd be very miserable and unfulfilled right now, wondering what could have been. I grew enormously as a person between about 28 and 33, and I've only earned a salary which let me have any kind of an enjoyable social life since I was 33. I'm sure older people would say I was extending my youth and messing about, but what of it? I didn't get to enjoy it when I was younger because of the economy and personal circumstances.

This idea that everyone should be on the treadmill of college -> job -> house by 30 just doesn't work for a lot of people, especially now.

limnam

lainey_d_123 wrote: »

Why?

I was unfortunate enough to graduate into the 2008 crisis. It took me absolutely ages to get on my feet. I couldn't afford to travel anywhere in my early twenties. I didn't graduate until I was 22, then I scrabbled around in minimum wage jobs trying to upskill and did a Master's and changed industry twice before saying 'feck it' and heading abroad aged 30, to work and travel.

I'm 35 now and way behind where I thought I'd be, but I've experienced the world a bit, met loads of interesting people, got to know myself and what I'm capable of and what I want out of life.

I'm now saving for a deposit as best I can and still hoping I might even get a chance for kids. I think I did the right thing, and that if I'd married my ex and had kids at 28-29, I'd be very miserable and unfulfilled right now, wondering what could have been. I grew enormously as a person between about 28 and 33, and I've only earned a salary which let me have any kind of an enjoyable social life since I was 33. I'm sure older people would say I was extending my youth and messing about, but what of it? I didn't get to enjoy it when I was younger because of the economy and personal circumstances.

This idea that everyone should be on the treadmill of college -> job -> house by 30 just doesn't work for a lot of people, especially now.

There's no right way or wrong way to do it. Just what feels right for you.

retalivity

CBear1993 wrote: »

What countries in the world do you not have to pay all this BS back to the government? We’re a relatively safe, grand country to live in. But always believe it is one of the most corrupt in the world in politics and the economy.

This is a laughable assumption. Look at the recent history of nearly any country in Africa, Central/South America/Asia and compare to Ireland. Even in Europe, Ireland is nowhere near the worst - look at most of eastern europe.
Ireland does have corruption in politics and economics, but it pales in comparison to 80% of the rest of the world.

witchgirl26

CBear1993 wrote: »

What countries in the world do you not have to pay all this BS back to the government? We’re a relatively safe, grand country to live in. But always believe it is one of the most corrupt in the world in politics and the economy.

It's really not. There's a Corruption Perception Index produced each year. The most recent one is 2019 & Ireland is ranked 18/198. The higher up the list, the lower the corruption perception of the country. Somalia is down the bottom.