Hi
I purchased 2 investment properties in 2007 and have a tracker mortgage for 25 yrs with PTSB, negotiated interest only loan for first 10 yrs. Both rented generating €1,400 per month which covers current interest only repayments of €1,200 (primarily due to low ECB rate).
Capital outstanding on mortgage €650K, therefore in 5-6 years time PTSB will be looking for capital repayments.
Through a scheme available at the time, I claimed the VAT back on the purchase price (€85,000) which I pay back to the revenue based on the rent received.
Currently I owe revenue €78,000.
I have c.€65,000 (i.e. the VAT money) in cash deposited in various deposit accounts earning c 4% interest p.a. I estimate the houses are now valued at a combined €320K (even if could be sold).
My own principle private residence is worth €300k with an outstanding mortgage of €250k with 10 yrs left on mortgage (standard varibale rate with AIB). My wife and I both work in public sector with a combined income of €150K so jobs secure. Since 2008 and the 'cutbacks and taxes' our take home pay has dropped to €80k nett.
With new baby childcare costs, motoring costs, home mortgage etc very little disposable income now at the end of each month.
C
urrently I have enough expenses to offset any tax implications on rental income but that will probably stop over next couple of years therefore with extra charges i.e household charges, tax relief on mortgage interest cut to 75%, PRSI on rental income etc and if property becomes vacant for a period of time I cant see how I can make capital payments on the two investment properties in 5-6 yrs time,
Should I be looking at the new bankrupcy options?
I am really at my wits end over this overhang of debt, any advice most welcome.
I purchased 2 investment properties in 2007 and have a tracker mortgage for 25 yrs with PTSB, negotiated interest only loan for first 10 yrs. Both rented generating €1,400 per month which covers current interest only repayments of €1,200 (primarily due to low ECB rate).
Capital outstanding on mortgage €650K, therefore in 5-6 years time PTSB will be looking for capital repayments.
Through a scheme available at the time, I claimed the VAT back on the purchase price (€85,000) which I pay back to the revenue based on the rent received.
Currently I owe revenue €78,000.
I have c.€65,000 (i.e. the VAT money) in cash deposited in various deposit accounts earning c 4% interest p.a. I estimate the houses are now valued at a combined €320K (even if could be sold).
My own principle private residence is worth €300k with an outstanding mortgage of €250k with 10 yrs left on mortgage (standard varibale rate with AIB). My wife and I both work in public sector with a combined income of €150K so jobs secure. Since 2008 and the 'cutbacks and taxes' our take home pay has dropped to €80k nett.
With new baby childcare costs, motoring costs, home mortgage etc very little disposable income now at the end of each month.
C
urrently I have enough expenses to offset any tax implications on rental income but that will probably stop over next couple of years therefore with extra charges i.e household charges, tax relief on mortgage interest cut to 75%, PRSI on rental income etc and if property becomes vacant for a period of time I cant see how I can make capital payments on the two investment properties in 5-6 yrs time,
Should I be looking at the new bankrupcy options?
I am really at my wits end over this overhang of debt, any advice most welcome.