Q&A this week deals with buying a show apartment and tax exemptions for landlords...
It would suit me to buy a fully-furnished apartment so a show apartment would appear to be a good solution. However, I am having difficulty in finding one. The first time I approached an agent, the show apartment was not for sale, the second time they never got back to me and now after a long delay the builder has gotten back to me about another apartment with a price that seems frankly ludicrous - given that what you are buying is effectively second-hand furniture. Is there something I am missing in this?
Show apartments have gotten very sophisticated these days and it's not difficult to see why they are an attractive proposition. Two buyers who have come to the attention of this column appear to be typical buyers. In one case, the show apartment sold to a couple returning from the UK who were moving from a bigger house and so weren't interested in transporting large pieces of furniture. In another case, a recently separated man bought the show flat because he simply didn't want the hassle of trying to figure out the logistics of doing the job himself.
If these examples show anything, it's that the selling of a show apartment isn't some sort of firesale where you can automatically expect a cut price deal. Also some developers now go in for wildly expensive fit-outs - designer sofas and lamps and Travertine marble flooring everywhere and mosaic tiling in the bathrooms which would be impossible on the available tiling allowance. It's not unusual for developers to keep the show apartment for themselves, which might explain one of the times that you failed in your attempt to buy. Also the price the apartment goes for is often dependent on how much use it's got.
In a large development that has been on the market for some months, the show apartment may well be showing signs of the wear and tear of hundreds of people testing the sofa and walking on the carpets. In another smaller development which sold out in a matter of weeks there may be very little damage done. It really all depends and you should by all means haggle as much as you can. If you like a show apartment's style you could always get the name of the interior designer from the estate agent and contact him or her to replicate it in your one, right down to the cups and saucers in the kitchen.
Renting out two rooms
I am renting out a room in my house and want to rent out another room as I now intend to spend a large part of the year in my apartment in Spain. I now get a tax exemption up to €7,620 for one tenant. Will that then be doubled?
No. The maximum total income in the rent-a-room scheme is €7,620 and that must include all monies for household services you get from your tenant, i.e. food, heating and so on. Once you go over that limit you will be subject to tax.
You should be careful about how long you stay out of the country in Spain because a residence that qualifies for tax exemption must be occupied by you during the year of assessment as your principal private residence.
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. 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.
