Hi,
I'm just looking for opinions on when it would be best to sell our second property. Here are the details:
- Three-bed terrace, built about 2000
- Paid €250,000 in 2006
- Mortgage outstanding: €177,000
- Rate: ECB + 1.15% (Ulster Bank tracker)
- Currently overpaying, so payments are €1,050 p/m and I'm making inroads into the capital sum
- Gross rental income: €6,500 approx
- Expected market price today: €105,000 approx
It was my home until 2010 when we married and I moved in with my spouse.
It lost us a ton of money on paper when the boom turned to bust (and got bustier). However it's profitable at present, because the value is increasing all the time (albeit slowly), it's providing a small income after tax, and besides, it will be a hell of a long time before it's liable for CGT.
What I'm wondering is what the best option is:
1. Sell as soon as it's no longer in negative equity - we forego future rental income and lose every penny that's gone into it, but we've a clean sheet and €1,050 extra each month from then on.
2. Sell once the mortgage is cleared - that's a long, long way off and we probably won't get back anything like what we paid into it. We also forego future rental income, but it would mean a tidy lump sum - which could go towards clearing the mortgage on the family home.
3. Hold onto it as a pension until well into retirement, maybe only selling once there's a need, e.g. for nursing home care. Depressing to think of this as we're only 40, but the future isn't going to just go away!
4. Somewhere in between the options above.
I'd be grateful for any comments or suggestions. Thanks!
I'm just looking for opinions on when it would be best to sell our second property. Here are the details:
- Three-bed terrace, built about 2000
- Paid €250,000 in 2006
- Mortgage outstanding: €177,000
- Rate: ECB + 1.15% (Ulster Bank tracker)
- Currently overpaying, so payments are €1,050 p/m and I'm making inroads into the capital sum
- Gross rental income: €6,500 approx
- Expected market price today: €105,000 approx
It was my home until 2010 when we married and I moved in with my spouse.
It lost us a ton of money on paper when the boom turned to bust (and got bustier). However it's profitable at present, because the value is increasing all the time (albeit slowly), it's providing a small income after tax, and besides, it will be a hell of a long time before it's liable for CGT.
What I'm wondering is what the best option is:
1. Sell as soon as it's no longer in negative equity - we forego future rental income and lose every penny that's gone into it, but we've a clean sheet and €1,050 extra each month from then on.
2. Sell once the mortgage is cleared - that's a long, long way off and we probably won't get back anything like what we paid into it. We also forego future rental income, but it would mean a tidy lump sum - which could go towards clearing the mortgage on the family home.
3. Hold onto it as a pension until well into retirement, maybe only selling once there's a need, e.g. for nursing home care. Depressing to think of this as we're only 40, but the future isn't going to just go away!
4. Somewhere in between the options above.
I'd be grateful for any comments or suggestions. Thanks!