I read your recent explanation of the new property price register and am concerned when it comes out it will show my house in serious negative equity.
My concern is that my tracker mortgage is no longer at the loan-to-value ratio (LTV) originally agreed for the lower interest rate. Then, it was less than 70pc, but I'm not so sure now. Could the bank seek to renegotiate the terms?
The new register will show actual sales prices achieved from January 2010. However, it won't show the amount of mortgage secured on a property, according to Karl Deeter of Irish Mortgage Brokers, so there is no way to tell what houses have finance on them or not.
"Your negative equity is known only to you. The bank may be aware of it should they check, but as half of all property loans are in negative equity you are hardly alone.
"The LTV covenant on trackers was a concern about two years ago but banks realised that this is not an 'ongoing' clause, rather it was an origination one meaning you don't have to keep your loan to value below 70pc for the duration of the mortgage, only at the start".
In short you have nothing to worry about except for making your monthly payments.
I read there are tax benefits from buying a home before the end of this year, but I have twin daughters starting college in Dublin next year and wish to buy an apartment for them to live in over the next few years.
When I go to sell this, what are the tax implications?
If you play your cards right you could be in luck tax wise.
The Minister also announced favourable changes to Capital Gains Tax (CGT) in the budget regarding second properties bought before the end of 2013.
Susan Cosgrove of Cosgrove Gaynard Solicitors explains. "CGT is payable on profit made on the disposal of any asset at the rate of 30pc. In Budget 2012, a new incentive relief from CGT was introduced for the first seven years of ownership for properties bought between Budget night, 7 December 2011 and the end of 2013.
"The relief will apply to all property, whether residential or non-residential, but not if a property is sold within seven years of its acquisition.
"If it is sold more than seven years after acquisition and a gain is made on the sale, relief will be given for the initial seven year holding period.
"For example, if you buy a property in January 2013 and do not sell until January 2023, the property would have been held for 10 years, so 7/10 years of any gain will be relieved from CGT and 3/10 years will be taxable".
Therefore, it would be well worth your while holding onto it for seven years even if your daughters' education finishes before this.
Don't forget that other taxes such as the second home tax, currently €200, the household charge and property tax will also apply in relation to the property.