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?
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?