Making the right buying decision?

[johnno09]

Hi all,
I have recently been thinking about buying a house from my folks. I have informally spoken to the bank and am quite confident of getting the money, given that i have a lot of savings and am not looking for a huge amount (less than €100,000).

So here's my quandry at this junction....I want to do what is best for them as things havent been easy in recent years with money and my fathers health, they are both in their early 60s.

So im wondering what people's advice would be on the most favourable option for them i.e. sell to me now for market value of approx €130,000 (maybe a bit more too) or continue to rent it for €400-500 per month for the forseeable future and have a regular income out of it.

 

[mathepac]

A sale at this stage will probably trigger CGT and maybe other taxes as well as this is NPPR so their net after tax, fees etc may be significantly reduced.

The residue of the sale is unlikely to generate anything like €400-500 per month income for them (if that side of the equation is important) so maybe in the medium term, if the hassle-factor of being land-lords isn't too great, the best solution may be to let things sit and review again later.

 

[johnno09]

I am beyond confused and headwrecked!

Am i flawed in thinking that if they made 120,000 out of it after taxes and fees etc that this would be the equivalent of 20 years rent upfront given that it will make 6000 max a year in rent?

Is there a more favourable alternative that my brain (which is now blowing smoke) has not come up with?