How can I move on?

Hi there,

I heard this is a very helpful forum. I have a problem!

I bought an apartment in 2006 in Dublin city centre, as a first time buyer. Its a one bed and the complex is well managed. Since late 2012 I have myself become a tenant and let out the apartment. The reason I moved was I became pregnant and there wasn't room for me, partner and baby. I figured I should do the move before the baby was born as it would be harder.

The tenant is excellent. My landlord is great. ...so I am lucky.

I can pay the mortgage and the rent. But I never budgeted for the forced landlord costs, ber, ptrb, tax on earnings, rebate of TRS etc. I do want to sort the problem, but there is just not alot of fat left after bills etc are taken out.

I have gotten valuations from 3 EAs - two over valued.....one I think was more realistic. Looking like a value of 125 with a mortgage remaining of 205. On a tracker with UB. Bank dont officially know I am not in the apartment, but I did change my address and they dont seem concerned.

I don't know much about negative equity mortgages but it sounds like it might just add to the problem...carrying a debt to a house I could just about afford.

Don't know what to do but know I need to do something.

Let me know what I need to do next to get some advice!

Just realised this will be helpful for you:

Income details
Net monthly - 1037 per fortnight with 26 pay cheque in a year - public servant
Net monthly - 1450 per month - private industry
Child x 1 = 135 PM

Personal circumstances so we can calculate your reasonable living expenses
one child family
renting 2 bed house = 1250 PM
creche = 585 PM
Share 1 car...a 03
Petrol = c 60 PM
Car Insurance = 45 PM
Child is 2.5 years old
Dont pay private healthcare
ESB-Gas - 110 PM at mo
UPC for TV/net/landline - 60 PM
Water charges /??
TV licence - 13 PM
LPT - dd at 6.33 PM
2 x Mobile phones - 50 PM
Refuse - 15 PM
credit card - 60 PM
Shopping/grocery - 350 PM

Home loan
Lender: ulster bank
Amount outstanding: 205
Value of home: 125
Interest rate: tracker
Monthly repayment: was 670 with trs, guessing 730 without trs
Amount in arrears: none

Summary of discussions and agreements with the bank: no discussion so far - considered a good credit rating... all my banking is with them, since I was 16!!

Credit Union
Amount of shares: 2.5k
Amount of loan outstanding: only 800.....but just about to apply for a loan to clear the TRS bill and credit card bill! Circa 5k............
Monthly repayment - 65 per fortnight at source from my pay slip
Term left - 800 left...


Other loans and creditors - delete those which don't apply to you
Overdraft - none....
Credit Card - 1800
Credit Card - just over min payment....60
no other loans, bar the small problem of a mortgage

Other savings and investments

Do you expect any lump sums in the medium term future?
no

How important is retaining the family home to you?
happy to let the apartment go if I have to....

What is your preferred realistic outcome?
i really dont know..... i just want to stop feeling overwhelmed

and more info.............
Management fees - 125 PM
Life assurance - 18 PM
Rent in from tenant - 875 PM for last three years - have not increased it for next year either
Items that come off my salary before I get the 1037 a fortnight are : income continuance, pension, pension levy, credit union and all the usuals.
thanks folks

Have you looked on www.daft.ie lately?
The minimum rent being achieved is €1,100 per month in Dublin 1 or 2.
An extra €225 would change your finances somewhat.
Of course your tenant is a "good" tenant!You probably don't hear a peep from him,as he is keeping his head down and hoping you don't realise that you are giving away your apartment.

So to put into perpsective the apartment.
IN
Rent @ 10,500

OUT
Mortgage @ 9,000
Management @ 1,440
Insurance @ 216
Misc @ 400

IN v OUT = 556 year

So the main problem is going to be your tax bill which should be greatly reduced by the interest. I don't think the apartment is really costing you that much expecially given that you are also lowering the cost of the mortgage by about 5k per year as well. i would hazard a guess that the apartment is costing you no more than 1 to 1.5k per annum after paying your tax.You need to hire a financial guy here btw as you will need to register the PRTB and they will advise on that.
Has revenue contacted you yet about trs ? If not just ring up and cancel it for now. They will come looking for the money later but that's not a priority right now.
Don't take a lon from the CU, take the 1800 CC outstanding from your current shares and tell the CU to take the rest of the outstanding loan out of the rest. That immediately clears the CU and CC which are high interest acounts. Save the extra €100 to a fund for the trs when they come knocking. You see now that really you are not any worse off by just shifting it correctly. I would advise to keep the current tenants at current rent as they're not demanding. Good luck.