Buying a House with a Two bed flat attached

lotus17

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My primary residence is a fully refurbished period property in a sought after area. Worth €700K ish. Live in the house 10 years and very happy.
I have my mortgage with Ulster Bank. 2 yr fixed at 2.3% with fixed period due to end December 2021. Current balance circa €220K with 17 years remaining on the mortgage. Age 41. Live with my partner, no children.


A house two streets over has come up for sale for €700k. Larger house but without the period features. It has a two bed flat attached and is fully planning compliant. If we sold up and bought this property, the two bed flat could be rented for €14K per year under the rent a room relief without incurring any tax. There is a door between the flat and the house. The flat seems well designed and would allow for a good level of privacy between residents in either part. This would mean we would have our mortgage paid pretty much by the flat. Thus, would leave us with a good but of extra money for holidays, etc and possibly allow earlier retirement.

I have previous experience of managing tenants as I own an investment property elsewhere. While we love our current house, might this be a better investment?

Good or bad idea?
 
First question I would ask myself is that if you're very happy now, will you be very happy in the new house?
 
It sounds like a no-brainer.

Check that you would get a PPR mortgage for the new property, that it's not two separate titles, etc. I don't think either is a big risk, but you wouldn't want to find it out at the last minute.
 
Live in the house 10 years and very happy.

This really is the key.

You live in a nice house.
You have decent neighbours.
You don't have any hassles with tenants in the attached flat.

You have a €220k mortgage which you can easily afford.

While we love our current house, might this be a better investment?

This is your home you are talking about. Don't give up a home you love because, you can get a better "return" on the investment elsewhere.

Brendan
 
My primary residence is a fully refurbished period property in a sought after area. Worth €700K ish. Live in the house 10 years and very happy.
I have my mortgage with Ulster Bank. 2 yr fixed at 2.3% with fixed period due to end December 2021. Current balance circa €220K with 17 years remaining on the mortgage. Age 41. Live with my partner, no children.


A house two streets over has come up for sale for €700k. Larger house but without the period features. It has a two bed flat attached and is fully planning compliant. If we sold up and bought this property, the two bed flat could be rented for €14K per year under the rent a room relief without incurring any tax. There is a door between the flat and the house. The flat seems well designed and would allow for a good level of privacy between residents in either part. This would mean we would have our mortgage paid pretty much by the flat. Thus, would leave us with a good but of extra money for holidays, etc and possibly allow earlier retirement.

I have previous experience of managing tenants as I own an investment property elsewhere. While we love our current house, might this be a better investment?

Good or bad idea?

Would I be right in guessing this house is near the coast

If so take a look at suncalc as it might influence your decision. There's a reason there's no plants out back.
(Of course it could just be a coincidence and we're talking different houses)
 
It has a two bed flat attached and is fully planning compliant.
Have you gone into the detail of the planning provided for the flat? The majority of such permissions state family use only and no rental allowed.
 
It is a big leap for the sake of a gov tax scheme that we have no guarantee will always be there.
 
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