Buying 2nd property but not for investment

B

Bonamassa

Registered User
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Hi,

My Wife & I are buying an apartment to be closer to work. We already have a 3 bed house but it's about 150KM from where we work so we are buying an apartment to be closer. We can't sell our existing property as the negative equity is too much.
We will be living in both properties and was wondering what are the implications of buying a second property if it's not for investment purposes? i.e. mortgages, tax etc.
We've tried asking revenue etc. but not getting any straight answers.

Thanks,
Bonamassa.
 
Now that NPPR is scrapped you don't have any issues/liabilities there. If you are not renting it you don't have any tax issues or PRTB related issues. You will have to pay proerty tax obviously.

In terms of mortgage, are you sure you will get one? You can't sell existing property due to negative equity so why would a bank lend you more. What are your savings. It will be treated as a second home for mortgage purposes so not sure if there is a higher interest rate for that...maybe not as it's not an investment property.
 
Re: tax.

A married couple can only have one Principle Private Residence for CGT purposes. If you have two properties in which you both live then you should notify Revenue about which one is your PPR.

No income tax liability as you are not getting any income from either.
 
Thanks for the replies guys. We're actually already mortgage approved, we made an offer on a place, it was accepted and the moment we're just waiting for contracts to be exchanged everything else is done.
 
I'm puzzled why one would not just rent a place nearer to work ,considering one already had the burden of owning property.

What would be the rent cf to purchase price in percentage terms? If it's under 6% I can't see point of buying as you'll be paying ca. 5% just in interest.
(Unless,of course, you are hoping for capital appreciation.)
 
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