I have a problem with damp stains reappearing on my bathroom wall and ceiling. Some time ago I had water damage to my bathroom due to an issue with my neighbour's shower. I was assured the leak had been repaired since, so I had my bathroom decorated a few months ago. There was no issue until last week, when brown stains reappeared on the ceiling and wall. The ceiling is stippled or artexed, which contributes to the problem. Could you give me advice on what I should do next? I will need to employ someone to handle this issue, as unfortunately I can't carry out the repair work myself due to age.
It can be quite frustrating when the cause of damage in your home is outside your control and you need to rely on the goodwill of neighbours for its repair.
The first action is to ensure that the leak is repaired. This can be determined by asking a professional to take a number of moisture readings in the stain-affected area. If the leak is active and water penetration is still occurring, the readings will be high. In this case, you will need to speak with your neighbour regarding further repairs. (If you live in an apartment development your managing agent will be able to assist with this communication, if necessary.)
Any further redecoration should only be completed once the leak is repaired and repeat moisture readings are taken, with satisfactory result.
It is worth noting that subject to the age of your property (pre mid-1980s), care is required in completing repairs to a stippled/ artex ceiling as it may have been constructed with asbestos-containing material. A building surveyor with relevant experience in asbestos sampling will be able to assist in determining this for you.
On further redecoration I would advise using some form of damp stain block as a primer before decorating. In some instances, adding a small amount of gloss paint to the ceiling paint can assist to thicken the mix and reduce the likelihood of the stain leaching through.
Andrew Ramsey is chairperson of the building surveying professional group of the Society of Chartered Surveyors Ireland, scsi.ie
Home sale options
I'm considering selling my home by private treaty and I'm curious about other ways in which I can sell it. What are the advantages and disadvantages of selling by private treaty, tender and auction?
The vast majority of residential properties in Ireland are sold by private treaty. It is a far from a perfect system, but remains the most popular. The other two main methods used are public auction or tender. The easiest way in which to offer my advice is to deal with them separately and identify the respective advantages and disadvantages of each.
Private treaty: The most common method of sale throughout Ireland used by both private vendors and banks/receivers. The main advantage for a vendor is that they maintain a stronger control of the bidding process and have time to reflect on the bids to decide if they want to accept them or not. It is also a more private process. Finally, the typical costs of advertising will be lower as the property may not require such extensive focused marketing as may be required in an auction sales campaign.
The disadvantage is that the sales campaign can drag on and buyers can change their minds about the purchase at any stage prior to signing of contracts. Typically the purchasers will undertake due diligence on the property in the form of a survey or having the title reviewed, only after an offer has been accepted. This can result in time delays and aborted sales.
When this happens and the property is brought back to the market, frequently the momentum in the marketing can be lost. Private treaty is a more cautious method of selling a property as opposed to the two main alternatives.
Public auction: This is becoming increasingly common now that markets are recovering. At the height of the market, a substantial number of sales were by public auction, particularly in the Dublin market.
An estate agent will only recommend a sale by public auction if (a) they feel there are likely to be exceptionally strong levels of interest, or (b) if they want complete transparency in the bidding process.
In some instances, due to the vendor being a public body where transparency will be paramount, a sale by public auction may be the only option.
The main advantage with public auction is speed, and assuming a reserve price is achieved, its creates a far higher degree of certainty that the sale will complete, as the purchaser pays a 10 per cent deposit and signs the contracts immediately following the auction. In order to do so, purchasers should have undertaken all due diligence prior to the auction. Typically there will be a closing date within four weeks thereafter. The main disadvantage is that it is a very public process where the bids and selling prices are in the public domain.
Ultimately all prices will be published on the property price register, but a lot of vendors would be very reluctant to have their property auctioned.
It can also lead to higher upfront costs as the property will have to be intensively advertised, typically over a three- to four- week campaign, and the vendor’s solicitor will have to assemble the title and prepare a sales contract. The main risk is that if the reserve price (whether disclosed or not) is not achieved, the property is withdrawn.
This can be deflating and the sale may lose momentum, which could at best delay a sale and at worst could result in a lower price than might otherwise have been reasonably expected by, say, private treaty.
Tender: This is the least common method of sale and is more common with commercial property and particularly development land. Essentially there are two forms of tender: a formal sale where a party bidding must sign and return a contract with a 10 per cent deposit; or an informal tender, often referred to as "best and final bid".
The latter is more common and may follow an initial sale by private treaty that has resulted in multiple bidders, where in the interest of concluding bidding, the agent may seek best bids by a certain date.
Each property and vendor are unique, and there is no one-size-fits-all approach to selling property. Someone who has to sell within say two months will be advised differently to someone who has six months to sell their property.
Gerard O’Toole is a member of the Society of Chartered Surveyors Ireland scsi.ie
Am I liable for CGT?
I purchased an apartment in 2004 for €310,000 in Cabinteely, Dublin, and lived in it until October 2012 as my primary residence, and then rented it out from December 2012, as I bought another property and have lived there since. I continue to pay taxes due on rental income.
The property is currently valued at around €240,000 and I am paying a mortgage on it, with 10 years to run. The current mortgage is €190,000. The "market price" in December 2012, if there was one, was about €180,000.
Are there any capital gains taxes due if I sell this before it reaches the price I paid for it, €310,000?
A liability to capital gains tax (CGT) arises when the proceeds (less incidental costs of sale) are greater than the original purchase price (plus purchase costs and adjusted for inflation if purchased pre-2003).
No CGT is due if you sell your property before it reaches the buying price. If the property were sold today, based on a cost of €310,000 and the current value of €240,000, a capital loss would arise (without taking into account costs of acquisition /disposal). Losses can be set against any chargeable gains that arise in the same year and any excess may be carried forward against gains of later years. However the full loss would not be available on disposal of this property. The reason is that if a gain arose on the property, the full gain would not have been taxable as principal private residence (PPR). Relief would be available to reduce the chargeable gain.
An individual's PPR is exempt from CGT if the individual has used the house as their PPR throughout the period of ownership. PPR relief is calculated based on a comparison of the period of occupation of the premises as a PPR and the total period of ownership. If a gain arose on the disposal of the apartment in Cabinteely, you would be entitled to PPR relief only for the period of actual occupation by you as a PPR, ie 2004 until October 2012. Any period following this will be deemed to be non- occupation, excluding the final 12 months of ownership, which are deemed periods of occupation for the purposes of the PPR exemption. Your loss will be restricted in the same proportion.
As you are currently in receipt of rental income, you have an obligation to submit an income tax return. The gain or loss on disposal should be included in your income tax return. Alternatively the details should be submitted on Form CG1. We would recommend you contact a tax adviser when you decide to sell the property, to calculate the chargeable gain or loss.
Niamh Horgan is a tax adviser with Baker Tilly Ryan Glennon, bakertillyrg.ie
