What to do with a house that has been empty for 15 years?

[jpd]

That is not how indexation works

Sale Price	€ 100,000​
less sale fees	€ 3,000​
Net sale price	€ 97,000​
Cost	€ 30,000​
Indexation factor	2.253​
Indexed Cost (30,000 x 2.253)	€ 67,590​
Gain	€ 29,410​
Less annual allowance	€ 1,270​
Taxable gain	€ 28,140​
CGT @33%	€ 9,286​

 

[AlbacoreA]

I would not get involved with a building project with someone who sat on their hands for 15yrs. Especially when you have no actually authority in any of it. You'll get nowhere.

Sell it and do a building projects, rental etc. on your own. Don't make simple things complicated.

 

[lff12]

Unless it's in a very good location or he bought it very cheap initially, it's hard to imagine that it's sale will generate a significant CGT liability.

Properties like that are ten-a-penny in every corner of Ireland and nobody wants to know.

Exactly, in order to have a CGT liability you need to be making a profit on what you originally paid for the unit. If he's had it for 40 years he'll still probably have more in his profit after he's paid the CGT than he spent on it in the first place.

 

[Fortune]

Just with regard to indexation, didn't that go in 2002 or thereabouts? Surely then the reduced capital gain factor would only apply on gains from 1983 to 2002. Gains from 2002 to 2023 would be fully taxable, would they not?
I'm just surprised the indexation relief would reduce the gain so much given that 20 years of that period from 1983 was not indexed?
Surely indexation does not apply to the full gain ?

The indexation works by increasing the cost of the property in line with inflation (at a rate set by the minister for finance) up to the current date. It just so happens that the factor hasn't been increased since the early 2000s. The calculation assumes the increase in value occured evenly over the period of ownership, so the cost per the example above would still be €31,069 with no need to worry about when the property increased in value.

 

[Bronte]

I see there is certain grants available for the house to be renovated

So my plan at the moment is to get on to the council to see what is need to get the grants but after that I'm not sure what is the best thing is to do to get the house ready to be rented out.

Any advise is greatly appreciated.

The grant is 50K and can be 70K if derelict. If he sells it he should divide it between all siblings, not give one a prior inheritance or there will be trouble. He's too old to renovate it and it's too messy for you to take it on. So he should sell it. But he probably won't, because of 'reasons'. So just stop talking about it is my advice. (watch out though, I saw an article of a proposal for empty property tax of 6%)

 

[tinymouse]

According to this:
https://mmpi.ie/mortgages/articles/am-i-a-first-time-buyer/

"The Central Bank of Ireland defines a first-time buyer (FTB) as “a borrower to whom no housing loan has ever before been advanced”"

And

Help to Buy (HTB) scheme

www.gov.ie

"If you have inherited or been gifted a property, it will not affect your eligibility."

Definitely seek legal advice on this, but it would appear from these two links that you could actually inherit the house without affecting your first time buyer status.