Can I possibly get out of Ireland?

F

figtree

Guest
Just gone 26 years of age just out of a long term relationship.
No children and need to let the hair down and get away. Private sector employee with a mortgage of 400 euro a month, due to a bit of inheritance I managed to half my mortgage from day one.
Anyhow, as I am relatively young and I don't know what exactly I want to pursue work wise I'm looking at the possibility of heading abroad in the next couple of months.
Now, my dilemma is as follows, I bought the property less than 2 years ago at the height of the bubble but due to circumstances money came to me and instead of buying a car I decided to knock the money off the mortgage.
Obviously since then the value of my property has possibly halved, I don't rent out any rooms at present and live on my own.
With a mortgage repayment of 400 a month how easy or difficult would I find it if I went abroad given the likelihood that property taxes etc will be introduced.
Obviously I could rent a room out now if things went according to plan.
The option of renting the whole thing out just doesn't appeal to me due to the fact that the government will probably get half in tax, and then you have red tape, potential dodgey tenants etc.
Given my circumstances what would you advise I do?
Given the figures involved and possible future developments in Ireland how feasible is it for me to leave the property empty?
Or should I just try to flog it now if I don't have a clue what to do? How would people looking at the post reason in terms of house values, and the possible loss I'd make.
Or could I rent out a room and not be resident in Ireland and still be covered by the rent a room scheme?

Annual gross income from employment or profession: 46,000

Rough estimate of value of home: ?
Mortgage on home 100,000 (bought for 215)
Mortgage provider: BOI
Type of mortgage: variable
Interest rate: low
Other borrowings – car loans/personal loans etc: None
Do you pay off your full credit card balance each month? no
If not, what is the balance on your credit card? zero
Savings and investments: 8,000
Do you have a pension scheme? DB
 
Your 3 options are sell it, rent it, or leave it empty.

While leaving it empty my seem easy, insurance cover for an empty property is messy, and given that maintainance would be an issue (what happens if there is a leak and no one is there, vandalisim etc). There is also the cost of paying into a mortgage and getting nothing in return.

Selling it will be difficult and could take a long time given the current climate. Even priced right, you could end up pulling your hair out deaing with possible vendors and the banks. You could also be waiting a very long time for prices to return to a level that gets you out of a tecnhical loss. Selling would free up the money you put in, and allow you to invest that in something that may have a much greater return over the long run.

Renting a house is not rocket science, provided you set it up right, get good tenants, and have an agent, friend or family keep an eye on the place. Tax issues are not as great as you make out - the reason you'd be paying any tax in the first place is that you would be making a profit given your small mortgage, so I don't know why you'd be so against that idea, and if someone else wants to pay that mortgage for you, I wouldn't say no - you'll have moeny left over for travelling or spending on your return.



How long would you be planning to be away for?
 
1) yes as cancan says leaving a house empty ususally invalidates most but not all of the insurance coverage after 30 or 60 days of "emptiness".
2) Renting it out would it would seem an option,.I would suggets pitch it slightly below matrket rent so you have a choice of tenanats and pick one with referecnes and take a deposit and do it all by standing order .
3) OR if going for less than 6 months say perhasp two 2/3 month sessiosn abroad rent a room may be better as all tax free under (10k ?)and you have a bolt hole on return.
 
What rent could you expect for the property? How long have you the property and is it worth more or less now than when you purchased?

Rent a room scheme not an option as you have to be resident in the property to obtain same.

If it was me, I think I would rent it out if moving abroad for 3-4 years.. After paying tax on its rent, then you should still have enough to cover the mortgage repayment? As per cancan, then if you have someone to complete occasional checks on the property then it should be fine.

If you are just planning a 6 month career break then I think i would leave it idle and have friend keep an eye on it
 
I'm thinking you are hoping to flee memories and feelings by making this move, and perhaps it is the only thing you feel like doing at the moment - you have to do whatever you can to be happy.

But don't let this make a mess of your future.
Time will pass and you will get used to your new situation. At the moment, you have a job, a small mortgage and savings. Don't let a broken heart take these things from you, and don't let it cloud your judgement. I'm not saying that you shouldn't go away if that is what you really want - just don't do anything rash. I can't know about your employment prospects abroad, but you should consider that you may not feel any different in another country - we bring our feelings around with us.

Don't be worrying about the fall in the monetary value of your home - look at all the interest you have saved yourself. Your home is worth more than mere money.
 
Seeing as your are unsure of your next move it could be that a move abroad may only last a little while. Renting the property retains ownership and gives you somewhere to come home to so that is the option that I would go for. If you do stay abroad for a number of years, you may even see a return on the price of your home.
 
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