Using AH as an investment

[mark_d]

Mods - I've posted this in the mortgage section looking for a answer in terms of what I am allowed to do - however was looking to post here to get peoples opinions on what I am thinking of doing from an investment perspective, hence not sure if this is considered doubling up or not (if so, apologies).

the post -

Hi,
I've been looking into AH for a while now and was just wondering peoples thoughts on the following.
I'm thinking of buying a 3 bed house/apt through AH scheme and then rent out 2 rooms to more or less cover the cost of the mortgage. Keep the 3rd room spare as my own but then rent in another area (effectively having two places of residence)
Reason why I would rent somewhere else is because the AH I would hope to get would be in an area than has a good chance of renting but not necessarily somewhere I would want to live (i.e close to work/friends etc).
Am I mad or does this make sense? - Was thinking it would be a good way to get myself a property and hopefully down the line afford to buy a 2nd in which to live instead of renting.

Any advise appreciated.

P.s I'm simplfying things here of course in that I realise that I'm not guarenteed to always have renters, the AH scheme is a lotto,extra cost on owning a house etc

 

[murphaph]

(effectively having two places of residence)

You can only have one principal private residence for taxation purposes. If you don't live in the AH house you cannot avail of the rent a room scheme etc. and so all the rent (minus relief for mortgage interest and other reliefs) would be taxable income and anyway....are you even allowed to rent out an AH house? I'd be surprised if that was allowed.Also, if you are planning to avail of a first time buyer exemption from stamp duty you are also out of luck as you have to maintain that home as your PPR (ie, live in it) for a minimum number of years (someone will know exactly).

I can't see your idea working in practice and to me would be tax evasion.

 

[queenlex]

OP you could I guess pay to stay some nights in a hostel during the week closer to work, etc. if tat was something you'd be willing to do? Just an idea?

 

[truthseeker]

you have already posted this query elsewhere - what you are proposing is effectively an abuse of the AH scheme.

 

[Markjbloggs]

So typically Irish - looking to abuse a scheme that was put in place to help others.

 

[Miles]

So typically Irish

That statement really irks me!! An insult to the nation.

 

[Markjbloggs]

That statement really irks me!! An insult to the nation.

Which irks you more - my statement or the fraud proposed by the OP?

 

[ClubMan]

Practically the same query was posted here by the original poster.

Affordable housing question (not obvious! hopefully...)

Since the whole thing seems to be a proposed abuse of the AH scheme I am also closing this thread.