First Time Buyer status

D

daghda

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Hey,

The revenue.ie website defines a first time buyer as:
  • who has not on any previous occasion, either individually or jointly, purchased or built on his/her own behalf a house (in Ireland or abroad) and
  • where the property purchased is occupied by the purchaser, or a person on his behalf, as his/her only or principal place of residence and
  • where no rent, other than rent under the rent-a-room-scheme, is derived from the property for five years after the date of the current purchase.
If I buy a property abroad (never purchased before here or abroad) to rent, do I still retain my first time buyer status if I build/buy another property here as my primary residence?

Also, with a foreign mortgage, am I eligible for mortgage interest relief?

Thanks a million.

Fionn
 
"who has not on any previous occasion, either individually or jointly, purchased or built on his/her own behalf a house (in Ireland or abroad) and"

I'm not being smart,but is that not simple enough for you ?

The second part means that you must live in the property you buy here to get the ftb status in other words you can't rent it.I see where your going, it does not mean you can buy abroad to rent and still retain your ftb status at home.
 
You will still lose you first time buyer status if you buy a house or apartment abroad. A way I know other people have done this to get a parent to buy in their name and then you don't lose your ftb status, because you're not the owner, but you have to pay tax when you are gifted the profit from your parent, but there are allowances. The costs of setting up a company is normally not worth it for single purchase.
 
Hey,

Well the way I interpreted it was that if I had bought a property but this property was not "occupied by the purchaser, or a person on his behalf, as his/her only or principal place of residence" (i.e. I didn't live in it), this would exempt me from the first "exclusion rule".
So the way I interpreted it was that if I had bought a property (first condition) AND lived in it (second condition), then I wouldn't be eligible for ftb relief, but if I had bought a property but didn't live in it (i.e. rented it instead), I would still be eligible for ftb relief on the next property I bought for personal use.

Perhaps I am interpreting it wrong, but I just wanted to be sure as this would enable first time buyers to get involved in the property market without loosing their fsb status (i.e. me!).

Thanks for the help.

Fionn

In the second requirement, does "or a person on his behalf" mean a person who is renting the property? I guess then I could see how you would lose your ftb status.
 
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daghda said:
Perhaps I am interpreting it wrong, but I just wanted to be sure as this would enable first time buyers to get involved in the property market without loosing their fsb status (i.e. me!).
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You're interpreting it wrong. You have to meet all the criteria to qualify as a FTB. Buying a property abroad before you have bought in Ireland (if you're planning to) is probably not the wisest of moves.

daghda said:
In the second requirement, does "or a person on his behalf" mean a person who is renting the property? I guess then I could see how you would lose your ftb status.
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It's possible for a family member to reside "on your behalf" in a property and that property would still be considered your "principal place of residence". You'd need to check out Revenue's publications to see the exact details of when this is possible.
 
But can you buy land or commercial property and retain FTB status ?
I would like to start my own civil engineering and architecture business in the near future after I graduate and have quite a bit of capital (an inheritance from my grandfather of 500k) which I would considering using to buy land to develop in Poland and Czech for example. It seems an unintended consequence of the FTB rule if it prevents this type of entrepreneurship IMO.
 
stir crazy said:
But can you buy land or commercial property and retain FTB status ?
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If you create a business to handle these transactions then you will still retain your FTB status. You would not be buying the land/property on "your own behalf", it would be for the business that you have set up.
 
Afuera said:
If you create a business to handle these transactions then you will still retain your FTB status. You would not be buying the land/property on "your own behalf", it would be for the business that you have set up.
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Cool thanks for cheering me up :)

But would one have to create a limited company as a vehicle for the property holdings or is a registered business name at the CRO enough ?
 
It seems an unintended consequence of the FTB rule if it prevents this type of entrepreneurship IMO.
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Entrepreneurship isn't the aim of the ftb rule, it is to allow for an easier for step onto the property ladder not an investment vehicle.

Perhaps I am interpreting it wrong, but I just wanted to be sure as this would enable first time buyers to get involved in the property market without loosing their fsb status (i.e. me!).
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I think the answer to all your questions lies in the title first time buyer.
 
stir crazy said:
But can you buy land or commercial property and retain FTB status ?
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Yes, of course you can. The rule applies only to residential property.

The revenue.ie website defines a first time buyer as:...
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It does no such thing. It simply outlines a summary of the relevant legislation. If you are confused about this, you would need to be looking at the legislation itself, and/or getting professional legal advice.
 
Thanks for the help guys. I had a hunch that I was mis-interpreting it. I guess everyone would be doing it otherwise!

Cheers,
Fionn
 
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