Hi all,
Looking for some advice regarding my current financial situation.
Current situation:
Married with no kids. Living in a detached home in the country with a tracker mortgage of €200,000 (1.45%) and variable of €10,000 (4.58%). Tracker mortgage has 30 years remaining and variable has 4 years remaining. to Service these loans we currently pay approx €850 per month. I work in the public service earning approx €60,000 per year and wife works in private industry earning approx €18,000 per year. We have savings of approx €30,000.
Prior to meeting my wife, I owned a rental property (3 bed semi) in west Dublin which I had bought in June 2002 for €200,000. I paid something like €5,000 stamp duty and legal fees around that time. I had lived in this property for three years to approx 2005. Mortgage on this property is currently €135,000 with monthly repayments of €985. Property is rented to same tenants for last eight years and they pay €1,000 which i know is currently below the current market value. currently 18 years left on this mortgage
In September 2005 I bought another home in west Dublin,this time a four bed semi. I paid €345,000 and €23,000 stamp. I lived here until May 2011 and it has been rented since. Current mortgage stands at €279,000 and repayments are €1521 per month with a rental income of €1200 coming in per month. 26 years left on this mortgage. House rented to a family, again probably below market value. collecting rent here at times can be difficult.
Mortgage on both rental properties is variable at 4.58%.
I spoke with an auctioneer on Friday and he advised that he could
1: rent both houses for approx €2650 (€1400+€1250) per month and manage same for a 6% fee + vat or
2: believes he could sell both houses for €235,000 and €300,000 respectively.
So my question is do I sell one, maybe the three bed semi and use the near €100,000 equity towards paying off the big mortgage on the four bed or do I sell both. giving myself the same €100,000 but with no debt to service and headaches.
If so, what do you advise I do with the €100,000. I don't see the benefit of paying off the tracker early and yet I don't want to waste the money either by drip spending or investing where interest is very low.
I appreciate all this is hypothetical until i have the money in the bank, but I'm looking for guidance should I decide to sell / keep or whatever with the rental properties.
thanks for reading and any advice would be appreciated.
jazzy.
Looking for some advice regarding my current financial situation.
Current situation:
Married with no kids. Living in a detached home in the country with a tracker mortgage of €200,000 (1.45%) and variable of €10,000 (4.58%). Tracker mortgage has 30 years remaining and variable has 4 years remaining. to Service these loans we currently pay approx €850 per month. I work in the public service earning approx €60,000 per year and wife works in private industry earning approx €18,000 per year. We have savings of approx €30,000.
Prior to meeting my wife, I owned a rental property (3 bed semi) in west Dublin which I had bought in June 2002 for €200,000. I paid something like €5,000 stamp duty and legal fees around that time. I had lived in this property for three years to approx 2005. Mortgage on this property is currently €135,000 with monthly repayments of €985. Property is rented to same tenants for last eight years and they pay €1,000 which i know is currently below the current market value. currently 18 years left on this mortgage
In September 2005 I bought another home in west Dublin,this time a four bed semi. I paid €345,000 and €23,000 stamp. I lived here until May 2011 and it has been rented since. Current mortgage stands at €279,000 and repayments are €1521 per month with a rental income of €1200 coming in per month. 26 years left on this mortgage. House rented to a family, again probably below market value. collecting rent here at times can be difficult.
Mortgage on both rental properties is variable at 4.58%.
I spoke with an auctioneer on Friday and he advised that he could
1: rent both houses for approx €2650 (€1400+€1250) per month and manage same for a 6% fee + vat or
2: believes he could sell both houses for €235,000 and €300,000 respectively.
So my question is do I sell one, maybe the three bed semi and use the near €100,000 equity towards paying off the big mortgage on the four bed or do I sell both. giving myself the same €100,000 but with no debt to service and headaches.
If so, what do you advise I do with the €100,000. I don't see the benefit of paying off the tracker early and yet I don't want to waste the money either by drip spending or investing where interest is very low.
I appreciate all this is hypothetical until i have the money in the bank, but I'm looking for guidance should I decide to sell / keep or whatever with the rental properties.
thanks for reading and any advice would be appreciated.
jazzy.