I have been very privileged enjoying visiting my mums apartment in South West France over the last few years - she is now wanting to sell-up and buy a property elsewhere in another country.
The problem is that I really like the apartment and the area, so I am seriously thinking about either buying her apartment or another similar one in the area. Rental income is good - the season is short (May to September), but it keeps its nose clean and has some profit, so a worthy investment.
If I did buy the apartment I would be doing just that as she needs the money for her next purchase, but, I am wondering if there are any tax incentives or pitfalls around the best way to invoke the transaction? It is worth around 200K Euros. I would be stumping up around 100K, re-mortgage my current house worth nudging on half a mill, with just a £50K mortgage, so increassing the mortgage to around £130K to enable a cash transaction. I have seen another apartment I also like for 150K Euros (around £135K), and would be just about as happy with both is there was an incentive either way.
The problem is that I really like the apartment and the area, so I am seriously thinking about either buying her apartment or another similar one in the area. Rental income is good - the season is short (May to September), but it keeps its nose clean and has some profit, so a worthy investment.
If I did buy the apartment I would be doing just that as she needs the money for her next purchase, but, I am wondering if there are any tax incentives or pitfalls around the best way to invoke the transaction? It is worth around 200K Euros. I would be stumping up around 100K, re-mortgage my current house worth nudging on half a mill, with just a £50K mortgage, so increassing the mortgage to around £130K to enable a cash transaction. I have seen another apartment I also like for 150K Euros (around £135K), and would be just about as happy with both is there was an incentive either way.
Comment