Own Property: New €200 charge (yearly)

I got this letter from the county council regarding some new charge which they were applying to everyone with non-principal private residences. So I emailed them with the assumption that this would be applied to people who had more than one house. However I've since gotten this reply:

"Currently Cork County Council is writing to persons listed as landlords in County Cork on the PRTB database. The NPPR charge applies to residential properties which are not the owner's principal private residence/sole or main residence. If a property owner is not occupying a property which they own as their sole or main residence, it is liable for the charge. This is the case irrespective of whether it is the only property that they own and that the property at which they currently reside is owned by another party."

Now, this is my only property. I'm not living in it because I can't afford to pay the mortgage without renting it out. I'm living at home as I've gone back to college in the meantime. I have no income since every grant application has been rejected, and the rent I'm receiving barely covers my mortgage/insurance/taxes.

Now.. I'm a bit pissed with this charge.. And frankly, I'm seriously considering Objecting to pay it... My parents have said that they're ok with paying it for me, but I'm already up to my neck in debt with them, and enough is enough.

I realise I might be able to get around it by keeping a room in my place free for myself, but frankly I'd rather not give my tenants any more reasons to ask for rent reductions. (Since I'm damn close to making a loss, and this property has never made a profit since it was built 4 years ago)

Has anyone done any in depth research into this charge, and whether there are any ways around it?

Senna

Deleted User wrote: »

Has anyone done any in depth research into this charge, and whether there are any ways around it?

Very unfortunate situation, but the there is no grey area, you dont live in the house so its not your PPR, you must either pay the charge or adopt the house as your PPR.

You should also realise that this charge was brought in at a low level (€200) to "get it on the books" without objections. This figure will rise in future budgets, probably not in Dec's one, but they are planning on it to be a substantial fee over the next few years, i.e €1000 minimum.

Are you in negative equity? could you sell? if something like €200 is pushing you over the edge, what will happen when rates rise back to 5-6%? You're in college, this property will probably only be a noose around your neck for years to come and if you can get rid of it, you should.

lmao

You are spot on ! This charge has not been calculated on a full year so next years charge will be higher. THe phrase "Born free, taxed to death" springs to mind! I am so disillusioned with this country/government!!!! :mad:

Deadeyes

As you are probably aware this should have been paid at the end of October, however you also get fined for each month you don't pay.

https://www.nppr.ie/FAQ.aspx

jeckle

''Hold on, hold on
Hold on, Won't be long

The only way is up, baby
For you and me now
The only way is up, baby
For you and me now ''

[Yazz, 1988]

Diarmuid

Deleted User wrote: »

I I'm not living in it because I can't afford to pay the mortgage without renting it out.

if this €200 / year is pushing you over the edge, what are you going to do when interest rates increase? As others have pointed out that €200 is low by international standards. Expect €1000+ next year. To me it sounds like you cannot afford this house. If you are not in negative equity at the moment, then sell while you can.

Thanks for the info folks. I have to hang on to the property simply because I'll lose more money in getting rid of it, than if i hold on to it. I have coverage to pay losses, but naturally they're family loans.

If they had introduced this tax a few years ago, i wouldn't have been so bothered, and would have been prepared to pay it, but to introduce it at this time? Extremely unfair. But then i suppose life isn't fair.

Best of luck to you all

johndaman66

Some harsh words there from Senna I'm sure your thinking klaz but to be fair I think hes telling it the way it is. I do see why you might argue that the charge is unjust on a point of principle but if the reality of the situation is that the charge is the straw thats breaking the camels back I think you should seriously stand back and thoroughly review the situation you are in. Bearing in mind that interest rates are historically low at the moment the 200 euro charge would probably look like loose change when they do return to what would perhaps be considered "normal" rates.

Also I'm thinking the fact that you are in college means that you are not necessairly committed to the area in terms of a job and a job opportunity may (may not) arise in the other side of the country when you graduate. If this was the case and you were forced to sell you might be getting a hell of a lot less for the house then than now. If you are putting the house on the market now though or indeed at any stage I would be inclined to put a price on it that it will actually sell at, the price you bought it at not necessairly being relevant in this regard. Sorry if my post appears harsh or condescending and I do empathise with you and wish you the best.

johndaman66

johndaman66 wrote: »

Some harsh words there from Senna I'm sure your thinking klaz but to be fair I think hes telling it the way it is.

Honestly, I have no problem with what he said. I asked a question, and he answered it very well. No problems there.

Also I'm thinking the fact that you are in college means that you are not necessairly committed to the area in terms of a job and a job opportunity may (may not) arise in the other side of the country when you graduate. If this was the case and you were forced to sell you might be getting a hell of a lot less for the house then than now. If you are putting the house on the market now though or indeed at any stage I would be inclined to put a price on it that it will actually sell at, the price you bought it at not necessairly being relevant in this regard. Sorry if my post appears harsh or condescending and I do empathise with you and wish you the best.

I'm finished my course in 4 months, so its not a huge issue, and I'm qualified enough in Credit control/debt recovery that I'm fairly well set up to find a job, if things have settled a bit more. But thats neither here nor there. I'll be doing some serious thinking about my situation, and I'll figure out what realistically I need to do within the next day or two.

No worries on your post. I'll be the first to admit I've made a fair number of bad choices in regards to my property.

johndaman66

Deleted User wrote: »

I'll be doing some serious thinking about my situation, and I'll figure out what realistically I need to do within the next day or two.

No worries on your post. I'll be the first to admit I've made a fair number of bad choices in regards to my property.

The best of wishes to you klaz whatever course of action you decide to take. Don't beat yourself up over it and things generally do work themselves out for the best in the end. To be fair I think in the good times very very few could have predicted a turn around in property of the magnitude we are now experiencing. Everybody is an expert in hindsight. I'm sure its no comfort but lots of people around the country are in the same or similar situations to your own. Best wishes to you in your endeavours.

Grawns

Just paid myself on the deadline. Like you I only own 1 house and it is vacant. Was considering treating it as my PPR but it's in Clare and I live in Dublin. I hope going forward that the tax doesn't increase for owners of only 1 house. It's a bit mean especially when people are moving out because they can't afford to stay or sell.

Diarmuid

Grawns wrote: »

Just paid myself on the deadline. Like you I only own 1 house and it is vacant. Was considering treating it as my PPR but it's in Clare and I live in Dublin. I hope going forward that the tax doesn't increase for owners of only 1 house. It's a bit mean especially when people are moving out because they can't afford to stay or sell.

I think it's highly likely that taxes will increase for all property owners. And how can you "treat" a house in which you don't live as you PRR? Sounds illegal to me.

esmeralda

Grawns wrote: »

Just paid myself on the deadline. Like you I only own 1 house and it is vacant. Was considering treating it as my PPR but it's in Clare and I live in Dublin. I hope going forward that the tax doesn't increase for owners of only 1 house. It's a bit mean especially when people are moving out because they can't afford to stay or sell.

Know someone in a similar position.

If you, say, spend every weekend there, couldn't you say that it is your main residence, and Dublin is your second residence (assuming you can get all your correspondence sent there)? Even if you don't spend every weekend there who could prove that you don't? I would have thought that the only way that could be proved is if all electricity, water etc. was cut off and it would therefore be easy to see that nobody was ever there.

Not claiming to know anything here or recommending that people flout the law, just asking myself questions as like you I see it as an incredibly mean measure imposed on people who have been forced to move by the current situation and can't sell (or rent for that matter).:mad:

mikemac

Deleted User wrote: »

I'm finished my course in 4 months, so its not a huge issue, and I'm qualified enough in Credit control/debt recovery

I think you choose your career well :cool: