VAT on sale of new house

[Bob14]

Hi everybody,

A farmer has offered me a site in Co. Monaghan for 60,000 euro. The site has full planing permission, but the plans have to be altered. If I buy the site and build a house on it to sell, do I have to pay VAT when I sell the house? A builder has quoted me 150,000 euro to build the house. Does anyone think I could make any money doing this?

Look forward to hearing your replys

Thanks

 

[blognet.info]

yes there is vat on all new houses and also c gains at 20%
i was selling a house in dublin that i built myself and the tax man wanted vat at 13.5% even do i clamed back no vat on the build also they were looking for 42% paye on the sale
so i pulled out of the sale rented out the house and released equaty tax free

 

[DonKing]

Hi everybody,

A farmer has offered me a site in Co. Monaghan for 60,000 euro. The site has full planing permission, but the plans have to be altered. If I buy the site and build a house on it to sell, do I have to pay VAT when I sell the house? A builder has quoted me 150,000 euro to build the house. Does anyone think I could make any money doing this?

Look forward to hearing your replys

Thanks

A friend of mine(a builder) has been building one off houses on sites in Monagahan for a number of years now, and he told a while back that margins have become very tight.

Now I didn't ask how much "very tight" was, but if you factor in that he can build houses cheaper than what it will cost you, then you may not make any money at all.

You need to find out how much similiar houses close by are currently being sold for. You also need to make sure that you are fully aware of your tax obligations.

Is the farmer selling the site at a discount to you? Have you any idea how much sites go for locally? Does the site have a good position, good road frontage?

If you think about it, if you are buying a site at the standard price and getting a builder to build at the standard price, then you are unlikely to make serious money unless the price of property/land increases by the time you go to sell.