We are a couple from Galway City in our late 60s whose children have stolen the nest. We live very close to NUIG and plan to rent a room to a student five days a week; we would love our weekends to ourselves.
How would that work from a financial point of view? I think we don’t need to pay income tax?
Our son is not happy with the idea, but it would be a welcome boost for our pension. I think we are in an area of pressure on rents, so we also have to consider how that might affect us?
First of all, being in a Rental Pressure Zone (RPZ) doesn’t matter. This is a set of rules regarding how much you can charge on investment property as the owner. This does not apply to renting a room in your own home, which falls under a different set of guidelines.
The Rent-a-Room program is a tax break where you can earn up to € 14,000 per year for a long-term rental without paying tax on that income. A student staying for one academic year would be eligible, as would a five-day week.
What you would get for a room is irrelevant, but you might want to ask around what the going rate is, or check websites like daft.ie or nuigstudentpad.ie for similar examples.
Providing a search does not make you a landlord within the meaning of the Residential Tenancies Commission regulations. You do not need to register with them or obey any rules regarding notices of tenancy or termination. However, you will need to file a tax return at the end of the year reflecting the additional income, regardless of your tax situation.
You mention your pension. If the rental income is in addition to a contributory state pension or private occupational pension or stroke, then I don’t see a problem. However, if you only receive a non-contributory state pension (old age), then because this is means tested, any additional income could potentially affect this.
Second, I’m sure your son considers your safety and well-being, and maybe the thought of a potentially loud and messy student worries him.
You can, and should, set ground rules for what you’re comfortable with in terms of using common areas, cooking, laundry, entertaining friends, or at night, for example.
We finished paying our mortgage many years ago and recently made a will to accommodate the new grandchildren. When we collect our papers, we find that we cannot locate the deeds of our house. This upsets my wife a lot and I really don’t know what to do next. The mortgage was with the Bank of Ireland, but it ended at least 12 years ago and I’m pretty sure the deeds were returned to us by then.
This obviously worries you and I don’t blame you. Paying off your mortgage is an important step and the return of title to the property is very important.
First of all, I think you should contact the bank again. The deeds are kept off-site in safes and, exceptionally, they may not have been returned. At least ask them to do some research, giving as much information as possible. I asked Seamus Fahy, Managing Director of Merrion Vaults, what to do if it doesn’t help.
He said, “The good news is that acts can be replaced; the bad news is that it can be a costly and time consuming affair. First, contact the Land Registry – now called the Property Registration Authority – at landdirect.ie.
“Since you will be doing some research, it may be best to personally visit the Land Registry Office if you can. It is based in Smithfield, Dublin.
“You will first need to check the house register and get the folio number, and specify that you are named the owner. You can then request a copy of the folio and the file plan (map). If you are not named, the mapping section can show ownership and folio number.
“If it is very old, you might not find it, but the records will exist in the Deeds Register section and you can ask for help finding these records, called ‘Memoirs,’ and getting certified copies. compliant.
“Next in line is the planning permissions documentation. If the property is considered old and there have been no extensions or other developments to speak of since 1964, no planning documents will be required.
“If at the end of all this no file is found, then a new deed will have to be created and it is the business of a notary. This can be expensive as a record trawl will be required. The cost of the new act is borne by whoever is responsible for their loss.
It is a good idea to store very important documents like this neatly, although I know that is not helping you now. If you decide not to sell or even buy a new home, you can do so in a private vault for around $ 199 a year, according to Mr. Fahy.
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