ButtermilkJa
Registered User
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So, my question is, as I will be moving abroad (for at least 12 months) then do I have to pay SD if I hold on to the apt and rent it out?
no.In other words, is there any 'special' clause for people who are not in the country and renting their PPR temporarily?
In relation to CGT if you sell the property within 12 months of letting it or return to live in it within 12 months, the porperty becomes your PPR again no CGT is payable on the eventual sale (say in 5 years time)From revenue
Clawback
A clawback arises if rent is obtained from the letting of the house or apartment for a period of 5 years from the date of the conveyance or transfer, other than under the rent-a-room scheme. The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property. A clawback will not arise where the property is sold to an unrelated third party during the 5-year period.
You also have to register with theshold before you can claim the interest paid on your mortgage.
The clawback amounts to the difference between the higher stamp duty rates and the duty paid and it becomes payable on the date that rent is first received from the property.
Why on earth would you rent the place and pay as much in stamp duty as you could possibly receive in rent? This beggers belief.
You're prepared to potentially make a substantial loss if the place isn't rented for the entire 12 months or indeed is wrecked when you get back. This is before you factor in the hassle, PRTB, tax on income. Why would you do such a thing? So you can tell everyone how smart you've been and that you've someone else paying your mortgage whilst you're away?
A little less of that wouldn't break your back....So you can tell everyone how smart you've been and that you've someone else paying your mortgage whilst you're away?
Sure I understand what you're saying, and I know I've been back and forth with this for a while (and thanks for all the advice so far!!), but like I said in the other threads being a landlord is not something I'm aiming for. It would be more of a side-effect of my overall plan. You never know when go away what will happen. What if I need to come back suddenly for family reasons or if I just hate it away and am homesick. I'm just wondering whether it would be beneficial to be 'on the ladder' so to speak or come back as a cash buyer?I agree with this. Also Buttermilk, from other threads you've started, I think this has been on your mind for a while...to sell or not to sell... However, I think you might have an idealised view of being an absentee landlord.
If I want to keep it I will have to pay SD and there's nothing I can do about that.
Not at allLeave it empty and you don't have to pay a penny.
Allow a relative to stay there rent free and you don't have to pay a penny.
Or rent it out and pay, up front, as much as you could possibly make in a year in rent before expenses and hassle and extra taxes and risk.
I dunno, maybe I'm just thick.
That's more what I'm leaning to alright, but being the ultra cautious person I am, and with my family and everyone else telling I'd be mad to sell I just have to look at all options.From personal experience, I am more than happy to be living abroad without the hassle of owning an Irish property. Now is as good a time as any to sell, so if I were you, I'd strongly consider it. You won't have to repay any stamp duty, deal with tenants, tax returns, insurance, management companies, etc, and you'll be completely free to either stay abroad or return home and in the meantime, probably have the time of your life.
Leave it empty and you don't have to pay a penny.
Allow a relative to stay there rent free and you don't have to pay a penny.
Or rent it out and pay, up front, as much as you could possibly make in a year in rent before expenses and hassle and extra taxes and risk.
I dunno, maybe I'm just thick.
I'm not sure that this is the case. In any event he'll have to pay the mortgage, he might as well try to make a few bob. Living in Canada with the responsibility of paying the mortgage at home wouldn't be much fun.
If he stays away for more than the year, this will balance itself out. Who knows, he might make his fortune abroad, come home to buy a bigger PPR and have an investment property all ready set up and running!
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