Accommodation what would you do question

jo187

Hello.

The following is all true, but is my wife's friend so don't have all the details. Let's called this friend Sarah.

Sarah lives in a nice two bedroom apartment, great location. The place is owned by Sarah father. It's his second property and paid the mortgage off it a while ago. His left his daughter and her partner live there the past few years, to save money for a deposit. I am not sure if she paying some form of rent, but would assume so.

He told them that he was selling the place. They went to the bank and got a mortgage of 350,000. They offered him this money and he declined. He told them he could get 500,000 for the place.

He waited till they found a place before he put it on the market. Sarah found a place, not a great location and it's dump. They are probably going to spend the next few years doing it up and add more debt on to them.

It one of those things, that I can see people having a different thoughts on it. I would like to help my kid, especially in these thought times but wondering what would other people do?

Deeec

The dad has given them a good leg up by allowing to live in the apartment rent free or at a low rent which gave them the ability to save.

Maybe the dad needs the money - maybe the apartment was his pension plan.

Del2005

Offering €150 thousand less than the price similar places are going for is taking the mickey. There is no quicker way for a family to fall out then over money and your friend is the one who caused it.

DubCount

https://www.boards.ie/discussion/comment/123779920#Comment_123779920

+1

Even if the dad doesn't need the money, its his property. "Sarah" needs to live where she can afford given her own finances. Many parents try to help their adult children, but its not their obligation. It sounds like this dad has already given a lot of help, and IMHO does not have to give any more.

Supercell

They should thank him for allowing them to stay there for free/probably well below market rent so they could save for a mortgage.

Why should he accept 70% of what he feels it will get on the market? Maybe 5% family discount might be a reasonable ask but 30% off is being greedy given the help he has already given her if shes asked for that. Besides, as others have said maybe he needs the money himself and it is his, not his ungrateful daughters.

SupaCat95

Great story but only half the tale.

Yeah that was a bit of an insult at only offering 70% of the value of the house. Also not being offering the full value means they are dreamers and already living beyond their means. They believed they were either going to inherit the flat or the main house in the will. Are there any other children or children in need?

The father has great foresight he is cashing out while the market is good. Seen it time and time again, that lad waiting and waiting for shares to hit that price and it all collapsing. I always say cash out when the going is good. He didnt turf them out on the street, he waited until they found a place, luckily they were smart enough to see the writing on the wall and ran with it, many aren't. They have their own place and its their own and they can work it out themselves, they are not kids.

This is a great time to be getting out of surplus property. Watch incoming laws that are in the making. We dont know what the fathers circumstances are. Sounds like he is cashing in his pension that he gambled on and wants to cash out now for his latter years. Has he health problems? Has he another child in need? "Sarah" cannot be too badly off if she and hubby can get a mortgage from the bank for 350K while the father waits. You think everyone get the location and house they want? I am still thinking of my dream retirement place in St Kitts and Nevis, with rum in my hand and wearing loud Hawaiian shirts and board shorts. You make the best of what you have got and strive for higher. "Sarah" should see this an adventure and learning experience renovating at house.

His property, his pension plan, his decision, his business. Sorted.

Ray Palmer

Sarah would also have to pay tax on the gift of 150k in property value. She could even be liable for the low/no rent as a gift.

The father also would have to pay CGT which I think would include the 150k gift so costing him more.