# rent or sell



## AppleSun (8 Feb 2007)

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## ClubMan (8 Feb 2007)

*Re: what to do!!!!!!*

Please read the posting guidelines.


> *what to do!!!!!!*





Moved from Mortgages and Buying and Selling Homes since this is basically a _Property Investment _query.


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## niceoneted (8 Feb 2007)

*Re: what to do!!!!!!*

I would keep it an hold on to some independance.


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## mc79 (8 Feb 2007)

*Re: what to do!!!!!!*

You will have to pay a stamp duty claw back alright to the revenue, we sold our house in november.
It was a new house and we lived in it for 14 months, however when selling we were advised by our accountant to pay back the stamp duty claw back.... , I would hold onto it for an investment purposes... as sometimes things always dont go according to plan, and its always nice to have someone of your own....


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## CCOVICH (8 Feb 2007)

*Re: what to do!!!!!!*

It looks like you can't afford to keep it-with the stamp duty to pay (should you rent it out). Have you even looked at whether rental income would cover the mortgage repayments? 

Do you feel secure enough with your boyfriend to suggest that you sell your own place and buy a place together now?

For me, I'd rather be financially secure as opposed to merely 'independent'.


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## liteweight (8 Feb 2007)

*Re: what to do!!!!!!*



mc79 said:


> You will have to pay a stamp duty claw back alright to the revenue, we sold our house in november.
> It was a new house and we lived in it for 14 months, however when selling we were advised by our accountant to pay back the stamp duty claw back.... , I would hold onto it for an investment purposes... as sometimes things always dont go according to plan, and its always nice to have someone of your own....



You  don't have to pay stamp duty clawback if you're selling, or am I misreading the above post.

In the case of the OP it really depends on the cost of clawback versus penalty and whether, if you keep it as an investment property, it will at least pay it's own way.

Stamp duty clawback would be at investors' rate so not sure about 3%, it may be more. Also if you rent the property for a couple of years there will be a capital gains tax liability when you sell. The first twelve months after the property ceases to be your PPR is exempt from CGT.


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## ClubMan (8 Feb 2007)

*Re: what to do!!!!!!*



liteweight said:


> Also if you rent the property for a couple of years there will be a capital gains tax liability when you sell. The first twelve months after the property ceases to be your PPR is exempt from CGT.


Not just if you rent - if you hold the property for more than 12 months after vacating it as your _PPR _then some portion of any evential resale gain will be assessable for _CGT_ regardless of whether or not it was rented out.


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## liteweight (8 Feb 2007)

*Re: what to do!!!!!!*



ClubMan said:


> Not just if you rent - if you hold the property for more than 12 months after vacating it as your _PPR _then some portion of any evential resale gain will be assessable for _CGT_ regardless of whether or not it was rented out.



Thta's right.


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## mc79 (8 Feb 2007)

*Re: what to do!!!!!!*



ClubMan said:


> Not just if you rent - if you hold the property for more than 12 months after vacating it as your _PPR _then some portion of any evential resale gain will be assessable for _CGT_ regardless of whether or not it was rented out.


 

Phew !!! I was getting worried that I had paid the stamp duty when I shouldnt have,


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## CCOVICH (8 Feb 2007)

*Re: what to do!!!!!!*



mc79 said:


> You will have to pay a stamp duty claw back alright to the revenue, we sold our house in november.
> It was a new house and we lived in it for 14 months, however when selling we were advised by our accountant to pay back the stamp duty claw back.... , I would hold onto it for an investment purposes... as sometimes things always dont go according to plan, and its always nice to have someone of your own....


 

This doesn't make sense-the clawback is *only* applicable if you *rent out* the property within 5 years of buying.

So you shouldn't have paid a claw back, but if you had held onto the property and rented it out, you would have been liable.

As a matter of interest, did you pay over the stamp duty directly to Revenue or to your accountant?


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## ClubMan (8 Feb 2007)

*Re: what to do!!!!!!*



mc79 said:


> Phew !!! I was getting worried that I had paid the stamp duty when I shouldnt have,


I was referring to _CGT _and not _SD_. See _CCOVICH's _comments about when the _SD _clawback applies above.


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## AppleSun (8 Feb 2007)

*Re: what to do!!!!!!*

thanks guys.

my mortgage is 1100 and current similar properties are renting for 900 euro. so i would need to make up the difference. If the claw back is approx 7k , it would use up every bit of my savings. i'm not making a profit off renting it so i don't know if it would be worthwhile.

if i sale, i will have a healthy profit which i could dump into a high interest account for a year and if all is still well with bf then buy a place togther. pretty secure with him i have to say. wouldn't be worried about splitting up but it is always a possibility i guess.

i think the general consensous from above is to keep it?


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## ClubMan (8 Feb 2007)

*Re: what to do!!!!!!*



Apple* said:


> my mortgage is 1100 and current similar properties are renting for 900 euro. so i would need to make up the difference.


Your rental income will also be assessable for income tax - even if it is less than your mortgage repayments - so the shortfall could be even more than €200. And you need to allow for vacant periods. And there is lots more to being a landlord that you need to be aware of. See the _Property Investment FAQ _for a basic summary.


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## AppleSun (8 Feb 2007)

*Re: what to do!!!!!!*

thanks clubman


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## liteweight (8 Feb 2007)

I wouldn't keep it.


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## ClubMan (8 Feb 2007)

Oh - and there are good reasons to consider switching to an interest only mortgage for an investment property:

Interest only mortgage


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## ClubMan (8 Feb 2007)

liteweight said:


> I wouldn't keep it.


Yeah - I'm not sure where the consensus about keeping it came from!

I'm neutral on it but before deciding anything you need to crunch the numbers and see if it's likely to be viable/worth it. And that's before considering the general issues that come with being a landlord etc.


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## AppleSun (8 Feb 2007)

em the first 4 posts say to keep it.. lol.. thanks anyways...i'll just have to have a think


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## ClubMan (8 Feb 2007)

No - mine doesn't and _CCOVICH's _is neutral as far as I can see.


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## CCOVICH (8 Feb 2007)

I can't see how my post says 'keep it'.


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## AppleSun (8 Feb 2007)

I must be going blind.. thanks for advice.


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## liteweight (8 Feb 2007)

Apple* said:


> I must be going blind.. thanks for advice.



 Sell that property and use the money to see a specialist immediately!


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