Renting house a few questions

E

elmo

Registered User
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Hi guys,

I am moving to New Zealand in November and we are going to lease out the house and I am looking for some information.

First of all, the mortgage was not drawn down until the 23rd of Nov two years ago, therefore, if we rent it out before then we will be obliged to pay back some of the stamp duty we were exempt from, is this correct? - following on from this, does this mean we physically have to be in the country until this date or can we sign a contract with the tenants previous to this and ensure that the contract is not valid until the 23rd (ie, move in date, 23rd?). We would like to do this as we plan to move before this date.

2nd question, are we still entitled to claim TRS on our mortgage on the home? The rent we receive will be less than the mortgage so we will not be making any money on the home.

3rd question, I would like to use a letting agency and management agency, can they do all the paperwork for us provided we have the house ready so we can leave the country asap?

Thanks for all your help! Just a little confused on some things.
 
Firstly I believe (subject to correction) that the relevant date regarding stamp duty exemption is the date of the first mortgage repayment.

You will have to make alternative arrangements with your mortgage provider. You have presumably been supplied with a residential mortgage and you have approval for TRS. Once you move out and rent the property it no longer qualifies for a residential mortgage or TRS as it becomes a "buy to let" or investment property.

You will also need to arrange alternative landlord's (as distinct from residential) insurance on the property.

You will also need to register the property and the tenancy with the PRTB, see here - http://www.prtb.ie/index.htm

If you do not appoint an agent, your tenants will be obliged to withhold 20% of the rent for remittance to the Revenue as you are a non-resident landlord see here - http://www.citizensinformation.ie/categories/housing/renting-a-home/tax_relief_for_tenants

Landlords on here have had poor experiences with letting agents - try a search for details.
 
Ok, the only issue with not going through an agency is that we wont be in the country (we wont even be on a similar time!). As a result, we wouldnt be able to manage any of the in's and out's of this.

Ok, in terms of the TRS, the mortgage provider im sure can provide more details on this?
 
Hi

Not sure if this will help but we have just rented out our preperty for the first time.
1. As far as I am aware you are liable to pay a % of stamp duty if you lease out before 5 years (this did not apply to us as we have the house longer than 5 years)
2. You will not qualify for TRS anymore and will have to pay tax on any rental income - regardless of how much the income is.
3. There is also a new annual property tax of 200euro (I have just heard about this so subject to correction on it)
4. You wil need to contact your insurance company and change your insurance
5. In my opinion if you are not in the country you will be better working with an agent who will manage things for you.
6. Register with the PRTB (this is a requirement) and it will cost you (can't remember exactly how much) They also wanted details of the tenants in the house.

We contacted our bank to let them know we were leasing out the property but they were not that interested just said that we had to let revenue know and just send them a letter stating we had done this. As long as repayments continue they were not concerned with it.

Hope this helps - it was more work than we thought!!
 
Tia123 said:
Hi

Not sure if this will help but we have just rented out our preperty for the first time.
1. As far as I am aware you are liable to pay a % of stamp duty if you lease out before 5 years (this did not apply to us as we have the house longer than 5 years)
Click to expand...

Just on that one point - the clawback period was changed to 2 years in Dec 2007.
 
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