# Advice on current situation



## dinny1980 (15 Mar 2009)

Hello

I was hoping to get some valuable advice.

My partner and I are looking to buy sometime this, maybe the tail end of the year due to the direction the property market is currently heading.

At the moment we have a reasonable amount saved - 45K and growing - 20K mine - 25K his so far

His job is stable - public sector (just a paycut!!!!) (36K) while mine is realitively safe for the next couple of years (37K and has 6% increase on the way).

Debts - two car loans nothing excessive that we hope to pay off this year.
Credit Card - only his which is only a couple of hundred.

Looking at properties currently valued at 300K, hope to offer 200K or less at some point.

The only stumbling block is that he currently has another property - apartment (120K still on the mortgage)(It is rented which automatically covers the mortage-we both can not live in it due to proximity from our job locations) (we are bought living at home and would rather buy then rent)

I am just checking to see, i know his FTB status is gone and mine is still there if i buy alone, together we will have to pay stamp duty. I am just checking to see would there be a way that he could hand over his savings to me and therefore have 45K total then the FTB can buy the house and someway recognising me as half owner aswell?

We have been together for the long term and intend to stay together for the long so handing money over will not be a problem.


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## dinny1980 (15 Mar 2009)

*Re: Advice for on current situation*

Thanks Jaybird, once we get a house, marriage would be on the horizon at somepoint. My main reason for doing this is that loan approval might be hard to come by together with the apartment to take into account. Whereas me on my own going for the mortgage might have a better chance of getting a mortgage.

Could i ask what would people's opinon be on this?

The apartment has been on the market for a while and there has been no takers even after reducing the price a number of times.


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## CCOVICH (15 Mar 2009)

*Re: Advice for on current situation*



dinny1980 said:


> I am just checking to see would there be a way that he could hand over his savings to me and therefore have 45K total then the FTB can buy the house and someway recognising me as half owner aswell?



I think that if a non-FTB makes a contribution to the purchase of a property, it will trigger a stamp duty liability.

Maybe this thread might be relevant in this case?


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## dinny1980 (15 Mar 2009)

*Re: Advice for on current situation*

Thanks CCOVICH

I am not too concerned with the stamp. I am worried the chances of getting a mortgage together might not happen due to the other property he currently has!


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## picaresque (17 Mar 2009)

*Re: Advice for on current situation*

*Looking at properties currently valued at 300K, hope to offer 200K or less at some point.*


You might want to make a Plan B incase prices don't drop by a further 1/3 on average in the next 8 months.(I don't mean for this to contravene the ban on property prices discussions just a point I hope is ok to make.)


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## dinny1980 (17 Mar 2009)

Thanks picaresque

I was incorrect in saying current value of €300,000 ; this is the current asking prices.

I know what you are saying though that i may be a bit presumptuous with hoping for such a drop!


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## Bronte (18 Mar 2009)

You should think long and hard before buying with someone you are not married to.  If a bank would not give you a mortgage based on both your current financial situations then that can be a good thing not a bad thing.  I don't think people with quite a bit of savings should have car loans unless you got a great deal on the interest rate.  You are incorrect to state that handing over money is not a problem.  

Does the apartment rent cover all costs and what is it's latest asking price, size and location?  We are not allowed speculate on property prices but I think you should save some more and wait at least 6 months to a year.  The ramifications to property prices that will follow the next budget have yet to be seen.


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## dinny1980 (18 Mar 2009)

Thanks Bronte,

Yes the rent will cover the costs, asking price has been lowered by 25% but like alot of sellers, not a lot of takers, located near kildare region.
Our financial situations are pretty good for both, no excessive loans, car loans will hopefully be paid off soon! At the moment we are putting away a couple of K a month.

I think the best thing to do would be to go together on the home and pay the stamp duty. We could easily keep both if we bought a house at the right value, even if one of us are let go or the tenants decide to leave. Whenever prices do go back up then flog the apartment.


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## orka (19 Mar 2009)

dinny1980 said:


> II am just checking to see would there be a way that he could hand over his savings to me and therefore have 45K total


Because you are not related, you would have to pay capital gains tax on his 'gift' to you.  I think it's something like 12K can be given taxfree to a non-relative and you pay 20% CGT on the amount above that.


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## infinity (19 Mar 2009)

orka said:


> Because you are not related, you would have to pay capital gains tax on his 'gift' to you.  I think it's something like 12K can be given taxfree to a non-relative and you pay 20% CGT on the amount above that.



or do as Taoiseach Bertie Ahern did.....


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