Justification for Selling

G

galway008

Registered User
Messages
20
Just looking for comments on my reasoning behind selling my house in Galway.

I am moving abroad. I was going to rent it out but when I looked at the figures (Income - Interest, Management Fee, Repairs (10%), Tax, Insurance) would only have given me a return of 1.2% on the capital I could free up. I really don't want the hassle/worry of renting either.
I am ignoring the capital appreciation/depreciation of the house as I don't want to break the rules by speculating on house prices.

When I sell if I put my capital in the likes of Northern Rock Deposit I'll get 4% (after dirt). I would probably spread it around in different assets which could make more over time.

Is my reasoning correct ?
 
Probably. Have you also taken into account any CGT liabilities that you'd be liable for in the future and the income tax liability you'd have on your rental income?
 
galway008 said:
Just looking for comments on my reasoning behind selling my house in Galway.

I am moving abroad. I was going to rent it out but when I looked at the figures (Income - Interest, Management Fee, Repairs (10%), Tax, Insurance) would only have given me a return of 1.2% on the capital I could free up. I really don't want the hassle/worry of renting either.
I am ignoring the capital appreciation/depreciation of the house as I don't want to break the rules by speculating on house prices.

When I sell if I put my capital in the likes of Northern Rock Deposit I'll get 4% (after dirt). I would probably spread it around in different assets which could make more over time.

Is my reasoning correct ?
Click to expand...

Your reasoning is scarily rational and logical for a lot of the advice peddled around here.

And you can add something without even thinking of speculating on house prices:

There is a credit crunch going on that is making fiance more and more expensive and more and more difficult to obtain and this has a long time to play out yet.
The demographic tide is turning extremely quickly
There is still around 1 empty house/apartment for every 6 househods in the country
There is stil la siginifcant pipeline of new properties at some stage of completion in the country.
A recession has now started and unemployment is rising at an accelrating pace

Cash is king
 
Thanks for your views. Yeah I forgot to include the CGT I would be liable for so that takes the return on the rental property down further. I had included the income tax.
 
Where are you going abroad? Will you seize to be an Irish resident. Perhaps there are better deposit options there. For instance in NZ you can get 8.4% on deposit and only pay 10% dirt equivalent on that interest
 
You must log in or register to reply here.
Back
Top