Second house for special needs daughter

G

Georgecoe

Guest
I bought a second house for my 18 year old daughter last Easter. This house had to be located in an urban area (village 2 miles from my home residence which is in a totally rural area) since she will never be able to drive a car and have to rely on public transport to take her to any work she may get in Kilkenny, 12 miles away. She will not take up residence until her late 20s/30s so in meantime the house is rented (rent covers monthly mortgage) My query - I would never have bought this house but for the fact that I don't want her to have to end up in a state run institution so in that respect I'm saving the state money. Is there any allowance for the fact that I will be saving the state money in the long term?
 
While normally you can only have one PPR (Principal Private Residence) is this a case in which PPR benefits (e.g. owner occupier rates of SD and mortgage interest relief) can be extended to a second property?
 
While i understand what the OP is trying to do, Revenue IMO may think that there is a speculative element in this case.

The second house has been bought in 2007, only to be used by
daughter in about 10 years time, and is rented in the meantime.. So one would raise the question as to why the house has been bought now and not in 10 yrs time when needed by daughter?

So IF (big if as i don't know) there were to be allowances in the legislation for OP's case, it will be invalided by the renting between acquisition and use.
 
Don't know the answer to your specific query but I trust you are making the necessary returns to revenue in relation to the property. I'm pretty sure revenue will look on this as an investment. See [broken link removed]
Bear in mind that it is the interest on the mortgage not the full mortgage that is allowed as an expense. There are other allowances also.
Did you pay the investors rate of stamp duty?
Better to sort out now is case anything should happen to you and leaving your daughter or someone else to try and sort out the mess.
 
bacchus said:
While i understand what the OP is trying to do, Revenue IMO may think that there is a speculative element in this case.

The second house has been bought in 2007, only to be used by
daughter in about 10 years time, and is rented in the meantime.. So one would raise the question as to why the house has been bought now and not in 10 yrs time when needed by daughter?

So IF (big if as i don't know) there were to be allowances in the legislation for OP's case, it will be invalided by the renting between acquisition and use.
Click to expand...
Sorry - I overlooked that the property will only be used by the daughter in 10 years time. This probably invalidates my suggestion above even if it was a runner at all! At least for time being while the property is a rental property or whatever.
 
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