Questions on relocation and recycling are answered.
Parents moving to Dublin
My English parents, aged 63 (mum) and 67 (dad), want to move to Dublin to be near myself and my young family. They will have about €300,000 to spend on accommodation. Should we pool our resources and buy a big house for us all to live in? (We own our own home in Stillorgan on which we have a small mortgage). Could we buy a second property and they pay us rent each month - are there tax and stamp duty implications for us or them in this set up? Are there any benefits to them buying a property outright or should they maintain even a tiny mortgage for tax purposes?
As buyers, the first thing your parents should be aware of is the stamp duty issue. Presumably, they owned a house in Liverpool (hence the handsome lump sum), so they would not be regarded as first-time buyers in this market and would be liable for stamp duty. A property below €254,000 attracts stamp duty of 4 per cent. A property costing more than this but less than €317,000 attracts a stamp duty rate of 5 per cent. They should also factor in at least €1,500 for legal fees.
As for your parents taking out a mortgage, given their age, it would be virtually, if not entirely, impossible for them to get one. Lending institutions like to have their mortgages paid back before age 65. You could, as you suggest, buy an apartment and let it out to them but why? Do you actually want an investment property?
You will have to pay tax on the rental income and, when you come to sell it, you will be liable for Capital Gains Tax. What would happen if, in 10 years time, your parents needed residential nursing care - their nest egg will have been whittled away paying rent to you and they will have nothing to sell to realise the shockingly hefty fees necessary. Your idea of pooling your money and buying a bigger property might work but needs a great deal of consideration on a number of levels. With that amount of cash you would be able to trade up in your area to a house with a granny flat, but would you want to live that close to each other?
Your parents are relatively young and presumably value their independence. What if living in a larger house doesn't work out? It's a huge commitment for your family. At least buying an apartment outright will give them a home of their own and independence. Put aside talk of tax for the moment and try to decide how you want to live. Look for a six-month rental for them close to you for when they move over so that none of you makes a rash decision.
Is there any recycling?
I have moved to Dublin from Germany and, as a committed environmentalist, am having great difficulty getting information about what to do with my household waste - is there any recycling here?
Yes, and it's getting better. Contact your local county council and ask about getting a green bin for paper, card and tin cans and log on to www.dublinwaste.ie for information on the nearest bring centres to your home.
Send your queries to Property Questions, The Irish Times, 10-16 D'Olier Street, Dublin 2 or e-mail propertyquestions@irish-times.ie.
Unfortunately, it is not possible to respond to all questions received. 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.
