traderbill
Registered User
- Messages
- 13
Offer - Sell house to a company for €80,000 and reside rent free for both lives.
Comment on this offer.
Very private company. No website.Is this the company’s line of business ? If so can you name the company, presumably they have a website, would be interested in looking at terms / conditions etc for such an arrangement, it might make identifying problems easier.
Very private company. No website.
What is OP?Based on the above I would be very wary of this scheme in particular with the OP being a new poster.
I know the company director ceo. It is very sound.Are you involved with this company in any way, apart from this offer?
NoteFrom a purely financial point of view, it is a poor deal. If considering this, it would be purely from a personal circumstances perspective - how is your income going to change over the next 5 years, how is your health, do you have any dependents to whom you'd like to leave an inheritance, etc.
Based on the finance alone, your mortgage repayments are €90,000 for the remaining term of the mortgage, after which, you are left with an asset worth €165,000 and can live rent free for both lives anyway. The property will obviously change in value along with the rest of the market - probably up but, possibly, down.
Then, if you choose to take the offer, there's the added complication of the detail of the contract. What happens if you want to move home? What happens if one of you needs to go into a retirement home?
Personally, I'd continue paying down your mortgage and keep the house. The flexibility in owning the house outright as opposed to the mere right to live in it rent free is worth the sacrifice involved in making the monthly repayments over the next five years.
I know the company director ceo. It is very sound.
.
We do not understand reasoning here.Aside from the questions Ronaldo has raised, it seems to me, from a maths/financial perspective to be a good deal.
You get €80k now and no longer have a 1.5k monthly outgoing for the mortgage. (1.5k x 12 x 5 years = 90k) if you discount back to the present value that 90k and add it to the 80k then thats what you are effectively getting for a house that is worth (165k - 80k = 85k). Good deal.
Not sure what the tax implications would be.
We do not understand reasoning here.
No involvement.Are you involved with this company in any way, apart from this offer?
1. The company pays you 80k for the house? yes?
2. You no longer have to pay back your mortgage? Yes? => a saving of 1.5k per month for 5 years left on mortgage = 90k.
3. so taking a simplistic view if you add the proceeds (80k) to the savings (90k) and take away what the house is worth (value minus remaingin mortgage) = > 90+80-85=85k profit.
Let me know if I have made a mistake or you dont understand something.
So from the info you have given I cant see any reason why you wouldnt grab this deal.
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