Renting.

cosmowillie53

My friend bought a house ONE year ago.
He was a First time buyer.
He would now like to rent out the house BUT what is his position re clawback/ revenue etc.

Any ideas please......
Thanks

mrsbyrne

http://www.citizensinformation.ie/en/housing/renting_a_home/landlords_rights_and_obligations.html
its all here. far more complicated than people think.:eek:

dudara

Moved to Accomodation & Property

dudara

Johnny Bitte

cosmowillie53 wrote: »

what is his position re clawback/ revenue etc.

I bought mine in July 2009 and its now being rented out.

The TRS will be lost when he rents it.
He'll have to pay €200 NPPR tax,
fee for BER usually €150-200
and €90 to register the tenants.
Landlord insurance's is advisable too, mine is about €30 a month.

He should also consider using an EA to find a tenant and/or running the house.
Some of us aren't ready to be landlords.

The after all that, provide the tenant looks after the place and pays the rent on time he will need to pay tax on the rent received!
Currently the interest paid on the mortgage can be used to reduce the tax paid on the rent along with work done to the house.

This is my first year at it and just got an EA to put the tenants in lat week and then its over to me to be landlord.

Hope that helps.

D3PO

The_Goose135 wrote: »

I bought mine in July 2009 and its now being rented out.

The TRS will be lost when he rents it.
He'll have to pay €200 NPPR tax,
fee for BER usually €150-200
and €90 to register the tenants.
Landlord insurance's is advisable too, mine is about €30 a month.

He should also consider using an EA to find a tenant and/or running the house.
Some of us aren't ready to be landlords.

The after all that, provide the tenant looks after the place and pays the rent on time he will need to pay tax on the rent received!
Currently the interest paid on the mortgage can be used to reduce the tax paid on the rent along with work done to the house.

This is my first year at it and just got an EA to put the tenants in lat week and then its over to me to be landlord.

Hope that helps.

Goose bad news for you. You owe Stamp duty !!

Other rules

Clawback of stamp duty relief

A stamp duty clawback arises where rent, other than under the 'Rent a Room scheme' is obtained within the 2-year period (or up to the date of a sale during this period) from the date of the purchase deed. The amount of the clawback is the difference between (a) the stamp duty payable at the higher rates which would have applied at the date of the purchase deed and (b) the lower duty (if any) paid as a result of getting the benefit of the reduced stamp duty rates.

Johnny Bitte

D3PO wrote: »

Goose bad news for you. You owe Stamp duty !!

Other rules

Clawback of stamp duty relief

A stamp duty clawback arises where rent, other than under the 'Rent a Room scheme' is obtained within the 2-year period (or up to the date of a sale during this period) from the date of the purchase deed. The amount of the clawback is the difference between (a) the stamp duty payable at the higher rates which would have applied at the date of the purchase deed and (b) the lower duty (if any) paid as a result of getting the benefit of the reduced stamp duty rates.

CCCCCHHhhhhhhhrrrriiiissssttt!!

Who would I contact to sort this **** out?

There's always always always something else!

EDIT: Just incase it matters, I paid stamp duty when I bought the other half of the house off the ex. about €700
But as I am now renting it my first time buyers exemption from 2009 stamp duty is revoke and I have to pay that too?

Johnny Bitte

So we paid 0% when we bought in 2009 but the Stamp Duty then was 7% for owner occupiers.
The house was bought for €159k but the first €125k is exempt leaving €34k of which 7% = €2380
No what i owe is what we should have paid €2380 against what we did pay which was 0!

So I now owe €2380!!!

Before I go puke my ****ing guts up at the fact I ve now poored more than 10k into sorting out a house I didnt want and still dont want, is there anything I'm missing?

D3PO

Goose your best speaking to a solicitor

Its pretty much stamp duty at full liability minus the 700 you have paid.

That said I dont know if its on the value of the house now, the purchase price, when you started to rent and if there is any liability to your OH / ex