Kerrygrrrl
Registered User
- Messages
- 27
Sounds about right. Dublin apartments are 24% of their 2007 peak.That is 75% of the purchase price whilst broadly property prices have recovered to 90%+ of their 2007 peaks.
Three children who are 12,10 and 7.
apprehensive about our rights as property owner if the property is tenanted and we need to sell / use for our children.
This is the key point.There is obviously a fair bit of headroom for the apartment to increase in value without worrying about CGT.
Adding tax brings it up to approx 27k thus making you cashflow negative
You've got 65k of equity in this apartment. It's generating over 7k of after-tax profit. That's almost 11% after-tax return. Where else could you come even close to this level of return?
I respectfully disagree. The original purchase price is irrelevant - apart from the CGT shield it generates. The OP can liquidate and realise 65k equity. Or he can keep it and earn over 7k after-tax pa. Simple choice.Hmm lets have a think about that... maybe on a property running a €125k capital loss?
Return on equity is for the most part a meaningless number when taken out of context like this.
No, it's the delta in profit that is 5k. The profit (after-tax) from deploying the 65k in the rental is 7k. The "profit" from deploying the 65k against the PPR mortgage is 2k.If his mortgage on a PPR was say 3% then the 65k equity would save him nearly 2k a year. So the profit from keeping rental is really 5k not 7k.
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