I need a mortgage in order to be able to reduce my tax bill from my rental income
You may be allowed claim Mortgage Interest Relief against your rental income. The interest must be from a mortgage that is used to purchase, improve or repair your rental property.
Thanks Leo i know that. Are you pointing out something else?From Revenue:
. Anyway we bought the house with saving of about €75,000 and then €30,000 from C.U @8.2 % and 2 Credit Card loans from Avantcard (€16,000 and €12,000) which were interest free for 9 months then 16.8%.
Transferring it between names isn't going to help with tax position as it's not an arm's length transaction.
Thanks for that RedOnion, I am looking to borrow as much as possible because i want to write off as much income against mortgage interest relief. The property is in rural Donegal so not all banks will look at a BTL outside the big urban areas.Sean,
Are you looking for tax advice, or advice on how to get a mortgage?
Tax:
You can only claim interest relief on borrowings that were used to purchase / renovate the property. Refinance of the loans used for purchase would be allowed. An equity release to repay part of PPR wouldn't. So if there's no interest relief, there's no point in doing it since the rate would be higher than on your PPR.
Transferring it between names isn't going to help with tax position as it's not an arm's length transaction.
Mortgage:
Talk to Dilosk or Finance Ireland. They might be happier to look at this than a bank would.
There's nothing at all clear about that, and many married couples separately own assets.It's clear to me the property is jointly owned despite being in only the wife's name
That is what my wife and i did in March to get the money to buy the house. We both got Credit Cards from Avantcard with 0% for 9 months. Good man nice one but i think An Post is through Avantcard but i might be wrong. If not i will certainly try. I did try BOI because they had a similar offer of 0% interest on balance transfers but they refused me. No reason why just refused. Should i ask them for a reason? It was just a back up plan because i don't want to be caught with the 16.8% for a few months.I got approved for a 12 month interest free balance transfer up to 16k with An Post. Just a bit of form filling. It's a very cheap way to finance something!
What can't you believe? I had to act fast. Yes very easy to get €16000 from Avantcard, just sent them on bank statements, payslips etc. Not sure what we told CU but we had savings of €20k there so they had no problem giving us the money. Must have said home inprovements.Can't believe you did this. But at least you have a lot of equity. Is it that easy to borrow money on credit cards. What actually is a credit card loan.
I fail to understand why you didn't go for a mortgage on the property.
What did you tell the credit card companies and the CU the money was for?
My credit union does loans on property, not sure about investment property, but if you don't suceed with a bank than the CU looks cheap compared ot the credit cards.
Why did you purchase the property in the wife's name?
So neither Avantcard nor the CU know what you actually used the money for.What can't you believe? I had to act fast. Yes very easy to get €16000 from Avantcard, just sent them on bank statements, payslips etc. Not sure what we told CU but we had savings of €20k there so they had no problem giving us the money. Must have said home inprovements.
There's nothing at all clear about that, and many married couples separately own assets.
It had to be a quick sale hence the great value.
Fair point but i borrowed €28,000 interest free for 9 monthsSo neither Avantcard nor the CU know what you actually used the money for.
You might be better off paying the CU the 20K and then just owing them 10K !
Or going back to the CU to pay off the two Avant debts. of 16 + 12 = 18K. I thought CU's gave 3 times your savings. The you should have just borrowed 58K off them in the first place.
I am not a tax expert but my understanding is that the borrowings must be an actual mortgage loan. Can you use credit card and C.U. loans?He is. But I didn’t realise as I missed it. Cream Egg’s post made me go back to re read your OP.
Your problem is you can’t now borrow on your home and write that interest off your rental income. You can for the CU and the two credit card loans. Those monies were to buy the rental.
I know zero about air b&b rental though. Tax wise.
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