Sell/Or Rent - HELP

D

dingdong

Registered User
Messages
85
Hi

I have a 3 bed house in Dublin 4 , nice street:

Would sell i think for 470,000-500,000
MORTGAGE : 470,000

Mortgage interest Only with BofS for 30years - currently 700-750 per month

RENT Currently : 1700 per month

This was my principal house but moved a year ago, so i wondering what you guys would do, should i
sell , clear my debt
or keep and pay tax on the rent and hope property rises.

Anyone with cyrstal ball
 
We don't allow speculation about house prices on askaboutmoney, but in any event, people can't predict house prices.

You are making a profit before charges of €12,000 per year on an investment of 470k. Depending on your actual costs, rent-free periods, maintenance, etc., this looks like a good return. It is only a good return though, because you have such a cheap tracker.

This is a return of 2% on the capital employed. If you keep the house for 10 years, you will have a cumulative return of around 20%. If house prices fall by 20% over the next ten years, you will still break even. Your guess is as good as mine or as anyone else's.

I think you should approach BoSI and ask them will they do a deal if you sell your house? This is costing them a fortune. They may offer a discount of around 10%. This would be worth taking, although you should start out by asking for more.

Where are you living now? Will you want to buy a house again in the near future? If so, then you should sell as banks will be reluctant to lend to you if you have a mortgage already, even if it is a very profitable one.
 
Hi Brendan

Thanks for reply, I have moved to my final (I think family home ), so wont be looking for another personal home mortgage which is currently with AIB on repayment 35 years.

I actually got a mortgage with AIB in 2010, while I had this debt (The manager laughed when he saw the deal BofS had given me interst only lifetime of loan).

Did many people get these deals?
 
Wow, what a fantastic deal, the best I've seen. No I would not sell, I would rent, put the excess away to have the capital to pay it off eventually and hope that property would rise, eventually. (I'm not speculating here, I used the word 'hope')

A 3 bed in Dublin in a good location is about as good as it gets. And the one type of property to generally hold it's value. But in any case it's a long term investment so can ride out many storms.

Just make sure you have the capital when mortgage period ends.
 
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