JoeRoberts
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My God. Put her in the house and don't be overthinking these things. Revenue are not interested.
Could my daughter move into the second property rent-free? Is this acceptable to Revenue or will there be issues?
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Dr Strangelove
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My bad. I’ve corrected my posts.
Dr Strangelove
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As per Census about 30,000 households occupy dwellings rent free.
Revenue has no idea where people live on a day to day basis.
The plan we had was dual. We wanted a nest egg for ourselves, and at the same time hoping to help our daughter with a place to live initially, while she saves for a deposit if she decides to stay in IRL and saves for her own place eventually as renting is astronomical in Dublin. The second plan we have is to rent it out after she finds a place of her own. We are not very knowledgeable about taxes and ins and out of what can be done. We are 2 simple people who worked very hard past 20 years in order to save some money and would like to provide a good start in life for our daughter.
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The Horseman
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For what it's worth you are not simple and should be proud of what you have achieved in saving the funds you have.
How and why did you conclude that buying a property was the most appropriate investment for your needs? What stage are you at with the process? If you already own your own home then buying another property is presumably concentrating quite a lot of your remaining net worth in the same asset class and geographic region which isn't generally a good idea from a diversification perspective. What sort of "business plan" and number crunching have you done to assess if/how a second property is going to function as a suitable nest egg?
Maybe a Money Makeover might help to clarify your options if it's not too late?
Maybe a Money Makeover might help to clarify your options if it's not too late?
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It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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Thank you for the reply. We will have a read. We payed off our mortgage, we are in a position to buy the property (one bed apptm) without a new one. I understand it might be in the same asset class and the geographic location is near practically the next county to our home... I understand we might not gain much from it as one might hope. However, we still think in our view, will be the best option, as initial plan and purpose is to help our daughter and the rest will be looked into later.
Think long and hard about this route. So many landlords are leaving the market as being a landlord is not for the faint hearted. It can be a lot of work depending on the tenants and sometimes the financial rewards are not so good.
I for one would not want the responsibility especially if I was to take phone calls from tenants at 3oc in the morning because they have a water leak or clearing out a mess left by troublesome ones. You could be left dealing with the PRTB who would appear to favour the tenants rather than landlords. From a lot of what I have read on AAM I would have to say rather you than me at a time in your life where you need less stress rather than more.
Good advice. Food for thought for sure. Sounds like you speak from experience. Thank you indeed.
Whilst these things do indeed happen, it's not every other week.
I've just checked back on one property I own which has been rented for 8 years (two different tenants).
Issues were:
1. heating not working, checked radiators and they hadn't been turned on - total time 20 mins
2. concern raised re 'colour' of water in bath; had water tested by local council and also took separate samples for private testing - no issues found. Total time, about an hour or so.
3. smoke alarm going off - one of the units was faulty, replaced it - 30 mins
Turnaround from tenant 1 leaving to tenant 2 moving in took about 10 days; the place was 'tenant' clean to be fair, but I like to have it so it looks (and smells!) "brand new clean".
You could add in the admin time; issuing receipts, tax returns, organising boiler service, inspections etc., but to be honest in that 8 years I have earned a significant chunk of income, as well as an outstanding capital gain, for a pretty low time investment.
Will it always continue that way? - I'm not naive enough to think I'll never have a major tenant issue, but I've enough of a cushion at this point to hopefully weather any storms.
A healthy dose of cynicism as well as a belief in the general decency of most human beings seems to get me through!
It is not final and there is still plenty of time for changing mind. Originally, we were looking for a 2 bed. Prices went up significantly, and that is why we started looking for 1 bed a couple of months ago. We didn't want a mortgage at all. Done paying ours a few years ago. Thank you for your reply.
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I would (and have done earlier) urge that they reconsider buying a second property at all and properly consider the alternative investment options and assess what's most appropriate for their situation rather than rushing to put what would most likely be most or all of their net worth into a single asset class and geographic region (Irish property).
Could my daughter move into the second property rent-free? Is this acceptable to Revenue or will there be issues?
My God. Put her in the house and don't be overthinking these things. Revenue are not interested.
www.askaboutmoney.com
This isn't purely an investment decision. The OP is also looking to secure the welfare of their daughter, and this isn't limited to her financial welfare. So the OP may be willing to accept a lower return or a higher-than-optimal concentration in property or some other undesirable investment characteristic in order to secure their non-financial objective. That's a perfectly reasonable trade-off to make, provide you understand that it is a trade-off and you feel that it's one that you are happy to make.
It's quite possible that with a different investment approach they may be in an even better position to help their daughter to secure accommodation. I'm just saying that a proper analysis of all possible investment options and scenarios should be done.
Can't argue with that. And even if, at the end of the day, the OP goes with Plan A, they still have the reassurance that all the options were looked at and they've made an informed decision that Plan A really is the best option for them.
Dr Strangelove
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If it’s an only child (which it seems to be) then parents don’t have to worry about equal treatment.
It’s much easier to share money than an apartment.