Can you sell shares of your house?

BogMonkey

Right now houses in Ireland are steadily increasing in value, so they'll be up quite a bit in 5 years. Does there exist something where you can sell shares of your house to an investor, so lets say the house is valued at €100k now, but will be at €120k in 3-5 years, is it possible for someone to buy 10% of the house for 10k, so that in 5 years they are up by 2k? A deal where if the market crashes and prices go down, then they get paid back their investment (rather than less than what they invested).

I'm just wondering if such a thing exists in Ireland?

drunkmonkey

Ahh so you want to sell some convertible synthetic bonds on property, perfectly legal, just give the financial regulators office a call and they'll tell you what you need to do.

BogMonkey

Thanks. Convertible synthetic bonds, thats the first I heard this term.

I recently read about "releasing equity" too. I've seen this with respect to houses with mortgages, so a 150k house with a mortgage of 100k, the owner can release 50k equity to bring the mortgage back to 150k, and in exchange they can take a loan of 50k from the bank.

In the case of a house without a mortgage, I'm not sure which the best way to go would be.

barneystinson

BogMonkey wrote: »

Thanks. Convertible synthetic bonds, thats the first I heard this term.

I recently read about "releasing equity" too. I've seen this with respect to houses with mortgages, so a 150k house with a mortgage of 100k, the owner can release 50k equity to bring the mortgage back to 150k, and in exchange they can take a loan of 50k from the bank.

In the case of a house without a mortgage, I'm not sure which the best way to go would be.

In a house without a mortgage you release equity by, uuuummmmmm, TAKING OUT A MORTGAGE..!!:rolleyes:

How is this a work problem by the way OP?!

Nody

Mod:
Hello OP; I think you'll find this forum more suitable for your question. Please note a new charter is in effect.

BogMonkey

drunkmonkey wrote: »

Ahh so you want to sell some convertible synthetic bonds on property, perfectly legal, just give the financial regulators office a call and they'll tell you what you need to do.

Are you sure this is possible? The only thing I can find information on is releasing equity by taking out a mortgage.

barneystinson

BogMonkey wrote: »

Are you sure this is possible? The only thing I can find information on is releasing equity by taking out a mortgage.

Jesus wept... he was being sarcastic FFS!

If you've got a mortgage free property (lucky git) and you want to use it to obtain money, you can either sell it (as in, all of it, like a normal monkey), or borrow against it (like a normal mortgage monkey)...

BogMonkey

barneystinson wrote: »

Jesus wept... he was being sarcastic FFS!

If you've got a mortgage free property (lucky git) and you want to use it to obtain money, you can either sell it (as in, all of it, like a normal monkey), or borrow against it (like a normal mortgage monkey)...

If I was to get a 30 year mortgage plan (for more affordable repayments), would it be possible to sell the house before that 30 year plan is up? Also can repayments be made yearly rather than monthly?

Also with a house thats jointly owned by 4 people, 3 of whom have low income, what are the odds of getting a mortgage approved for 10% of the property value.

popa smurf

BogMonkey wrote: »

If I was to get a 30 year mortgage plan (for more affordable repayments), would it be possible to sell the house before that 30 year plan is up? Also can repayments be made yearly rather than monthly?

Also with a house thats jointly owned by 4 people, 3 of whom have low income, what are the odds of getting a mortgage approved for 10% of the property value.

Maybe you could set up a co operative society ( co op ) and you could sell shares in it. ya was thinking of trying to set up one myself to buy propertys in auctions that the banks were selling cheap and rent them out but I think that boat has sailed now

Geuze

BogMonkey wrote: »

If I was to get a 30 year mortgage plan (for more affordable repayments), would it be possible to sell the house before that 30 year plan is up? Also can repayments be made yearly rather than monthly?

If you own a house with a mortgage, you are perfectly free to sell the house during the term of the mortgage, as long as you repay the mortgage as you sell the house.

Yearly repayments? Never heard of them, I doubt it.

People earn weekly or monthly incomes, and so repay from them.

Geuze

BogMonkey wrote: »

Also with a house thats jointly owned by 4 people, 3 of whom have low income, what are the odds of getting a mortgage approved for 10% of the property value.

If the people already own the house, mortgage-free, why would they want a mortgage?

The bank will want to know what you plan to do with the borrowed funds.

BogMonkey

Geuze wrote: »

If the people already own the house, mortgage-free, why would they want a mortgage?

The bank will want to know what you plan to do with the borrowed funds.

So the bank will only allow releasing equity for renovations and building extensions and things like that, or are they more flexible? The plan is to invest it into a business venture.

BogMonkey

BrokenArrows wrote: »

Speak to a property agent and see if they can sell 10% of a property.

Its a house, the only land is a small back garden.

Heres a question I found on another site:

Can I sell half ownership to my house?

and heres the answer I'm looking into:

You can (essentially that's what married people do without a cash transaction) but legally the cleaner way would be to create an LLC that owns the house and sell shares of that. Unless your half-buyer lives in the house the accounting for ownership of improvements and expenses would be complicated I think.

Is this possible, if I create an LLC can I make the house into an asset of the company? How would you go about selling a share in a company like that then?

BrokenArrows

BogMonkey wrote: »

Its a house, the only land is a small back garden.

Heres a question I found on another site:



and heres the answer I'm looking into:


Is this possible, if I create an LLC can I make the house into an asset of the company? How would you go about selling a share in a company like that then?

I know its a house. There is nothing to prevent you from selling some of it.
There is nothing to legally prevent it. Part ownership is done all the time. Marriages, Inheritance, people just buying a house together.

You just need to find yourself a buyer with your conditions and get a solicitor to draw up the necessary documents.

Assumed conditions could be:
1. Buyer doesnt have any rights to live in or dictate if/when the house is sold.
2. Buyer is not responsible for general maintenance of the property or any bills for repair or improvement.
3. Buyer is fully entitled to profit from any repairs or improvement.
4. Buyer can sell their share of ownership at any point without requiring agreement from you.
5. Upon selling the house the buyer is entitled to 10% of the sale price of the house (including or excluding sale/solicitor fees??)
6. You can request to buy back your 10% at any point at a value determined by the market value, however the part owner does not have to accept.
7. Buyer is protected up to the value of the purchase price in the case where the house is sold for less than it was initially worth. (optional)
8. Buyer is not protected if they wish to sell their 10% share for less than their initial purchase price.
9. Buyer is not legally liable for any criminal or civil actions taken against the property. (Incase someone tries to sue to the owner for something or illegal activity takes place on the property)

BrokenArrows

BogMonkey wrote: »

Its a house, the only land is a small back garden.

Heres a question I found on another site:



and heres the answer I'm looking into:


Is this possible, if I create an LLC can I make the house into an asset of the company? How would you go about selling a share in a company like that then?

Also an LLC is a bad idea. You will be liable for a load of taxes on the transfer of the property to the LLC.

BogMonkey

BrokenArrows wrote: »

I know its a house. There is nothing to prevent you from selling some of it.
There is nothing to legally prevent it. Part ownership is done all the time. Marriages, Inheritance, people just buying a house together.

You just need to find yourself a buyer with your conditions and get a solicitor to draw up the necessary documents.

The tricky part I assume would be finding a buyer for this kind of thing. If anyone knows how to find buyers for this sort of thing, I'd be more than happy to give 5% of the loan/sum in exchange for connecting me with the buyer.

drunkmonkey

And what happens if monkey decided to give the investor nothing, what's the insurance for the investor?

BrokenArrows

drunkmonkey wrote: »

And what happens if monkey decided to give the investor nothing, what's the insurance for the investor?

If the solicitor did his job then he would be a registerer legal owner of the property so has normal legal ownership and all the rights under the law that come with it.

BrokenArrows

BogMonkey wrote: »

The tricky part I assume would be finding a buyer for this kind of thing. If anyone knows how to find buyers for this sort of thing, I'd be more than happy to give 5% of the loan/sum in exchange for connecting me with the buyer.

Speak to a solicitor first and get a costing for this. Then speak to property agents or advertise yourself in papers or online.

CINCLANTFLT

http://blackbee.ie/wp-content/uploads/2016/05/Trim-Castle-Hotel-Bond.pdf

DEFTLEFTHAND

CINCLANTFLT wrote: »

http://blackbee.ie/wp-content/uploads/2016/05/Trim-Castle-Hotel-Bond.pdf

Go on my son.

CINCLANTFLT

DEFTLEFTHAND wrote: »

Go on my son.

Hurrah! You noticed me! You said in a post many years ago that someone randomly started answering all your posts with that phrase... after that, I couldn't resist!