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Advice (edit: homeowner travelling for 12+ months)

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  • 18-07-2023 5:23pm
    #1
    Marty984
    Registered Users Posts: 32 ✭


    Hi, I'm a home owner (value 400k) with a 25k mortgage. I'm moving soon to work in Europe for one year minimum. I was thinking of renting out the house while I'm away but another piece if me is pondering if I would be better off selling. I'd have a big chunk of cash to invest or just deposit but I'd have nowhere to call home here. 39/m/single with no kids. Any advice if you could put yourself in my position please. Tnx.

    Post edited by L1011 on


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    #2
    L1011
    Registered Users Posts: 68,760 ✭✭✭✭L1011


    Right now, you need to assume that you will not be able to get a tenant out in a quick or easy manner; either due to legislation changes or overholding. This may mean that you cannot return to the house when you come back.



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    #3
    Marty984
    Registered Users Posts: 32 ✭Marty984


    https://www.boards.ie/discussion/comment/120868099#Comment_120868099

    That would be a solid reason for me to not rent it, the thoughts of legal issues would stress the s**t out if me. On top of the taxes, changes to home ins etc. On top of that I'm not looking to become a landlord but it would be a waste to just leave it there uninhibited. I'm leaning more to a sale the more I think if it.



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    #4
    kevgaa
    Registered Users Posts: 321 ✭✭kevgaa


    The main things to think about is what you want when or if you return home?

    Selling will give you a lump sum but with inflation and rising house prices unless you invest it wisely you may not be able to get a similar house in the same area with your money when you return.

    Also do you have somewhere to live when you return as renting is difficult these days?

    You could look at short term lets e.g people doing up houses etc so you have more confidence in getting the house back.

    Lots to think about for you but you need to look at the pros and cons of renting versus selling. In the current climate if you are only going for a year and plan on returning I would look to keep the house even if you keep it vacant.



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    #5
    newmember2
    Registered Users Posts: 2,596 ✭✭✭newmember2


    Employ a management company to let it out in five month terms until you return.



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    #6
    Marty984
    Registered Users Posts: 32 ✭Marty984


    https://www.boards.ie/discussion/comment/120868173#Comment_120868173

    Thanks, plenty to think about there.



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    #7
    herbalplants
    Registered Users Posts: 1,215 ✭✭✭herbalplants


    You need to think which country you want to call home eventually?

    You may go to Europe for work for a year and discover you don't really like living there for more than a year.

    You need to test the waters first.

    Do a 5 months contract and see how you see things in 6 months.

    Living the life



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    #8
    suvigirl
    Registered Users Posts: 7,883 ✭✭✭suvigirl


    Just rent out a room, you can get up to 14,000 euro a year and gives you time to decide if you will stay away or come home.

    You also have somewhere to leave all your stuff and stay when you visit home. You could easily charge the full 14,000 as the tenants will basically have the place to themselves.



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    #9
    herbalplants
    Registered Users Posts: 1,215 ✭✭✭herbalplants


    https://www.boards.ie/discussion/comment/120868685#Comment_120868685

    If you don't live in the house, you cannot claim 14k tax free

    Living the life



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    #10
    suvigirl
    Registered Users Posts: 7,883 ✭✭✭suvigirl


    https://www.boards.ie/discussion/comment/120868695#Comment_120868695

    It would be his principal residence and he would clearly still be living in it, travelling only to work.

    I know people that did it.



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    #11
    Mrs OBumble
    Registered Users Posts: 25,936 ✭✭✭✭Mrs OBumble


    https://www.boards.ie/discussion/comment/120868695#Comment_120868695

    S/he will gave annual leave and would be wise to spend some of living I the house, while here to visit family.

    The problem with selling and buying again is that you have to find somewhere you want to buy.



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    #12
    Del2005
    Registered Users Posts: 18,987 ✭✭✭✭Del2005


    https://www.boards.ie/discussion/comment/120868701#Comment_120868701

    Just because they did it doesn't mean that Revenue won't chase them for tax or start looking into more. They "might" have gotten away with tax fraud, others might not.



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    #13
    tvjunki
    Registered Users Posts: 602 ✭✭✭tvjunki


    https://www.boards.ie/discussion/comment/120869614#Comment_120869614

    Also after 6 months the lodger could claim they are a tenant and have indefinite tenancy.



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    #14
    Marty984
    Registered Users Posts: 32 ✭Marty984


    https://www.boards.ie/discussion/comment/120868685#Comment_120868685

    I could do this but as others have said it could get sticky with revenue, it's probably the best solution if I could find a relative or someone who I can trust. It would still be my primary then when I'm back on hols etc or over Christmas but my taxes would be paid in another country so I'd either have to keep it quiet from revenue or let them take half....



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    #15
    suvigirl
    Registered Users Posts: 7,883 ✭✭✭suvigirl


    https://www.boards.ie/discussion/comment/120869713#Comment_120869713

    If you rent out the whole house you will be paying revenue anyway, this way you still have your house with your stuff in it and somewhere to stay.

    just my own experience, I sold a house and went overseas for 2 years in 2017, now Covid did feck things up, but I'm still renting and paying big rent!



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    #16
    herbalplants
    Registered Users Posts: 1,215 ✭✭✭herbalplants


    https://www.boards.ie/discussion/comment/120869802#Comment_120869802

    Agree, it is best to keep the house and keep a room in.

    Living the life



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    #17
    newmember2
    Registered Users Posts: 2,596 ✭✭✭newmember2


    https://www.boards.ie/discussion/comment/120869659#Comment_120869659

    Don't let anyone stay 6 months - do 5 month term tenancies only.



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    #18
    tvjunki
    Registered Users Posts: 602 ✭✭✭tvjunki


    https://www.boards.ie/discussion/comment/120870854#Comment_120870854

    They lodger becomes a tenant as they can prove the owner is not staying there over the 5/6months. Also if you a tenancy agreement then they are a tenant. The owner will pay tax as expected on the full rent.



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    #19
    newmember2
    Registered Users Posts: 2,596 ✭✭✭newmember2


    https://www.boards.ie/discussion/comment/120870929#Comment_120870929

    "Rent a room" does not apply in the OP's case. After a tenancy of five months the tenant will have limited rights. The landlord is taxed on his profits rather than the rent he charges.



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    #20
    tvjunki
    Registered Users Posts: 602 ✭✭✭tvjunki


    https://www.boards.ie/discussion/comment/120870966#Comment_120870966

    Agree that the 'rent a room' does not apply in this case. As soon as you give the person a tenancy agreement of any kind they are registered as a tenant and you need to register with RTB within a month. Also if you go away you now have to register as a non resident landlord. New thing Revenue has introduced.



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    #21
    Ginger83
    Registered Users Posts: 3,504 ✭✭✭Ginger83


    OP you would be absolutely nuts to let anyone stay in your home and move away, family or otherwise.

    You are giving possession of a 400k asset to someone with no guarantee of getting it back and as many know in today's market possession is 9/10s of the law.



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    #22
    tvjunki
    Registered Users Posts: 602 ✭✭✭tvjunki


    https://www.boards.ie/discussion/2058305577/advice-edit-homeowner-travelling-for-12-months

    By the way. Nice to be in a position to have only €25k mortgage. If you are worried about paying the mortgage then go interest only for the year. Get someone to call collect post, pay any bills and keep the garden clean/clear. Leave it empty. You will at least have somewhere to go back too. You do not know if you would like the job and may want to come back sooner.



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    #23
    Marty984
    Registered Users Posts: 32 ✭Marty984


    https://www.boards.ie/discussion/comment/120871542#Comment_120871542

    Thanks! I worked my arse off the last few years to pay it off but I imagine with no kids etc it was a lot easier😉 chance to move now and make big bucks so the temptation is there. I'll think a bit more about leaving it as you say.



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    #24
    DubCount
    Registered Users Posts: 1,089 ✭✭✭DubCount


    Is there a relative you could ask to stay in the place with a caretaker agreement. No rental income, but no tenancy rights either.



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    #25
    Marty984
    Registered Users Posts: 32 ✭Marty984


    https://www.boards.ie/discussion/comment/120876108#Comment_120876108

    Had thought of that but nobody comes to mind, I believe there are now implications for the tenant in that kind of scenario now as they must declare they are getting free accomodation.



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    #26
    DownByTheGarden
    Registered Users Posts: 1,786 ✭✭✭DownByTheGarden


    Try a house sitter service. I havent seen it in Ireland but ive seen it work in the US. Might be worth checking to see if there is such a company in Ireland. BEtter check too that the sitter dosnt get any rights to your property you dont want them to get. Such as being a tenant after a certain tine etc



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    #27
    DownByTheGarden
    Registered Users Posts: 1,786 ✭✭✭DownByTheGarden


    https://www.boards.ie/discussion/comment/120876840#Comment_120876840

    A friend of mine paid his friends son a small amount to stay in his house and look after it while he was gone. I think it was €10 a month or something like that. The kid got somewhere to live for a year. His "job" was to keep it clean and fight off any burglers. All were happy with the arrangement. No tenancy and no tax liability.



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    #28
    Hotblack Desiato
    Registered Users Posts: 34,811 ✭✭✭✭Hotblack Desiato


    https://www.boards.ie/discussion/comment/120868099#Comment_120868099

    Right now you need to prepare for Sinn Fein CPOing, to all intents and purposes, your rental property without compensation.

    Do not let.

    Fingal County Council are certainly not competent to be making decisions about the most important piece of infrastructure on the island. They need to stick to badly designed cycle lanes and deciding on whether Mrs Murphy can have her kitchen extension.



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    #29
    Hotblack Desiato
    Registered Users Posts: 34,811 ✭✭✭✭Hotblack Desiato


    https://www.boards.ie/discussion/comment/120876108#Comment_120876108

    The way things are now, could even a relative be trusted to vacate when asked?

    Fingal County Council are certainly not competent to be making decisions about the most important piece of infrastructure on the island. They need to stick to badly designed cycle lanes and deciding on whether Mrs Murphy can have her kitchen extension.



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    #30
    mrslancaster
    Registered Users Posts: 1,811 ✭✭✭mrslancaster


    https://www.boards.ie/discussion/comment/120937406#Comment_120937406


    How would that CPO work?



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    #31
    spaceHopper
    Registered Users Posts: 3,991 ✭✭✭spaceHopper


    I'd sell, or leave it empty. Been a LL is not easy, even if you rent it a friend or family, things can get ugly when you want to come back. You could keep a room and rent it to family so you can always have access to it but you could be stuck living with them if you return, If you decide to stay and sell the house you'll be the worlds worst for doing it,

    If you sell now you cash in and invest but you might not beat inflation. If you keep it prices might drop but they will come back up.

    I would go and leave it empty if it doesn't work out abroad that you can always come back. If it does then sell it but don't sit on the fence for to long as there would be some capital gains tax to pay once it's not your ppr



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