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Putting a property for rent?

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  • 17-07-2008 5:24pm
    #1
    Tinytony
    Registered Users Posts: 525 ✭✭✭


    Hi guys,

    I've recently had the opportunity to buy a decent house at low price (through family - nothing dodgy). The thing is I will have no need to live there for a couple of years.

    It will be the first house I've bought. Is it ok for me to buy this, then rent it out for a couple of years. Do I need to tell the bank this will be my intention when applying for my mortgage and does it affect the stamp duty? And also would I need to tell the tax man etc? Is there a set procedure you have to go through before putting the house for rent?

    Help appreciated,

    thanks


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    #2
    whizzbang
    Registered Users Posts: 1,366 ✭✭✭whizzbang


    a couple of things to consider here. If this is your first place and you are getting the FTB stamp duty exemption then you will need to pay some of the stamp duty back if you rent it out within 2 years.

    If you are renting it out and gaining an income from it you need to tell the tax man. If you are planning on renting out a room then I don't think you have to pay tax on the first 10 grand or something like that.

    If you are renting the whole place out and moving somewhere else then you are liable for tax like any other business. I'm sure someone here will be able to give you more details. Of go over to AskAboutMoney.com and ask there.


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    #3
    Tinytony
    Registered Users Posts: 525 ✭✭✭Tinytony


    Cheers for that Whizzbang.

    I'm totally clueless as to whats required as it's all happened very quickly. I won't be living in the area for another few years so was hoping to just buy it and rent it out in the interim. I'd be living in rented accomodation during that time so it would still be my sole property. Would that make a difference as regards tax etc? I could just about manage the repayments if i don't rent it, but obviously it would be great to get someone in there.


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    #4
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    You'll be classified as an investor and liable for tax on the house you rent out which is a totally different ball game to being a FTB.


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    #5
    Tinytony
    Registered Users Posts: 525 ✭✭✭Tinytony


    gurramok wrote: »
    You'll be classified as a property tycoon and liable for tax on the house you rent out which is a totally different ball game to being a FTB.

    Cheers!! :D


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