Help with calculations

D

dmos87

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We own an investment property for 2 years this May. Purchased for 81,000. Approx 6K improvements cost over time since purchase. Remaining mortgage amount is 52K.

Rented for the first time this past July and having a disastrous time, tenancy coming to an end. We are contemplating selling up for a variety of reasons.

Similar size properties in our area are selling for 140,000 on average. If we were to sell for 140K, roughly how much of that are we looking to profit approx once the mortgage is cleared, tax and costs are deducted etc.? With the tax bill are we better off to rent for a bit longer?
 
Do you really want to rent, really? If not, then you have your answer on that question. On your next question, make sure you have receipts for ,everything since you purchased the place. SOLR FEES, WATER, ELECTRICITY, PROPERTY TAX, FURNITURE, APPLIANCES, CARPETS, REFUSE, etc, etc, etc. All these will help to determine your "profit".
 
We ventured into this wanting to be landlords, yes. It was a long-term investment that was well thought out for a specific purpose. I do think with the tenancy we just got unlucky despite the checks we did and it hasn't made me bitter about trying again.

Our own circumstances have changed a little, and the profits from the sale could go a long way toward improvements in our PPR. The value has also significantly increased. I have receipts for everything kept as it was always intended as a rental property.
 
Back of an envelope stuff, but I’d expect you to clear circa €70k after tax and costs if you sell it.
 
Gordon Gekko said:
Back of the envelope stuff, but I’d expect you to clear circa €70k after tax and costs if you sell it.
Click to expand...

Thanks Gordon, and of course I know its all rough estimates. Better than I would know regardless! Food for thought. Thats a great return for 2 years.
 
Gordon Gekko said:
Back of an envelope stuff, but I’d expect you to clear circa €70k after tax and costs if you sell it.
Click to expand...
Would that not be liable to CGT?

But €140,000 (estimated selling price) - 81,000 (purchase price) = 59,000 (gross profit); so how do you arrive at 70k profit (unless you are including the rental income?
 
As it was not your PPR at any time then you are due to pay the full 33% of any profit so tax due is about 26k and profit after that is 52k.
 
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