Any guide to prices?
Q I am one of the few people looking to buy a property in Dublin. Is there any guide that can tell me what price properties have actually sold for in a given area (versus the asking price)? Estate agents say the privacy act prevents them from telling me the sale price of a property, which makes it very tricky to know the real value of “the house next door”. I live overseas and can finally consider buying a base. My mum is in a nursing home so I no longer have the option of staying with her.
A The short and unfortunately not helpful answer to your question is no. During the boom, the popularity of public auctions masked the problem – the fact that those prices were public seemed to satisfy an appetite for the sort of easily available information on house prices that is freely available in other countries. A data base of actual prices is urgently required – and we are not the only ones saying this. It was one of the recommendations of the Commission on Taxation – but that was in 2009, which gives an indication of what “urgent” can sometimes mean in official circles. There have been some auctions recently, mostly of distressed properties, but their prices are unlikely to be particularly relevant to you as the stock was limited. Might it be a better idea for you to investigate a short-term rental near your mother’s nursing home while you are here, or to do a deal with a local B&B owner? While a base near your mother’s nursing home might seem a good idea now, in the future that location might not suit you. You don’t say where you are in your email but agents report that overseas buyers are the canniest people around, with a clear idea of how much they are willing to spend regardless of what sellers want. One reader suggested to us that the clearest way to get a value of a property is to apply for a mortgage to buy it – lenders are being very, very cautious about valuations. Even though you are unlikely to want to get a mortgage here, it would give you an indication of how unrealistic some asking prices still are.
Must I pay CGT?
Q I ’m lucky to own my house in Dublin. I’ve been given a work opportunity in Galway which will last for at least one year and maybe two, or longer. I’m thinking of letting my Dublin home whilst I’m in Galway, but I’m concerned that in doing so I will make myself liable to Capital Gains Tax on the full value of the difference between the purchase price and sale price of my home should I ever decide to sell it. Since I bought the house when prices were normal, this would be a large hit in terms of CGT.
A Capital Gains Tax is a complicated area and you should seek specific guidance from your local tax office. However, you should know that in general Revenue acknowledges that people have to move for work and shouldn’t be penalised for it. So if you can’t occupy your residence because of your move to Galway for work, that period of absence will be regarded as occupation and no CGT will apply when you come to sell. There are caveats: your time away must not exceed four years and you must live in the residence both before and after the period of absence.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers’ service and is not intended to replace professional advice.
