Your property questions answered
Developer won't fix rising damp
I purchased a two-bed apartment in April. The smaller bedroom has no vent. The room suffers from severe condensation, the wooden windowsills are now warped and rising damp is evident in the walls. The same problem exists in all 29 apartments in the block. I have contacted the developer on numerous occasions about this since last October. They have admitted there is a problem but have done nothing to resolve it. Is there anybody I can contact who would ensure that the developer completes the apartment to an acceptable standard. I am very worried about the long term visual and health issues resulting from this.
It sounds like a frustrating and nightmarish situation. This column talked to the Irish Home Builders Association (IHBA) who said that you have done the right thing by, in the first instance, contacting the developers and secured their acknowledgment that there is a problem. However, that doesn't solve it. At this stage there must be a move among the 29 other residents to get legal representation: when you bought the apartment, it was a contractual matter that involved the purchase of a building regulations-compliant home. It is a legal requirement that all apartment blocks must comply with building regulations and IHBA members must comply with this requirement. Any lack of compliance with building regulations should have been spotted by the architects who signed off the building - it's also one of the things that a professional snagger looks for when commissioned by a prospective buyer to do a snag list. As the Irish Home Builders Association is a trade organisation representing builders (including yours) you could contact them with a view to their contacting the developer to rectify the ventilation problems. Contact IHBA at CIF, Canal Road, Dublin 6. Tel 4066000, www.cif.ie
Where do we pay leaseback tax?
My wife and I (both PAYE workers) took out a mortgage in France (€100,000) and Ireland (€70,000) to fund a modest apartment in the South of France. We entered into an 11-year leaseback deal with an annual income of approximately €5,300. We did not use any company structure when taking out the mortgages or when purchasing the apartment. How should we interact with both Irish and French tax authorities with regard to the income received under the deal?
According to Louis Mann of leaseback specialists VEF, when it comes to tax on income earned, there is no distinction between owning a leaseback or any other investment property. On the French side, you are generating income so you must declare that in your annual French tax returns (usually done through a cabinet fiscal). Keep all your relevant receipts in relation to your leaseback property. These should reduce your tax bill. You must also declare the French income on your annual tax return in Ireland - because Ireland and France have a dual taxation agreement, you will not have to pay twice on that income. As a PAYE worker, you may not have made a tax return before but now that you are an investor you must do so. Before anyone buys an investment property abroad, they should be very clear on the tax implications/obligations. In the case of France they should also take estate planning advice, as inheritance laws are very different in that country.
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Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
