back you really have two separate issues. The first is should you keep lashing it into your AVCs? I think you have arrived at the answer to that one which is right for you, though there may be a case to put money into your wife's AVCs.Lol Marc! That is tremendous..You guessed correctly on the house value, about €100k...based on what I've learned this bank holiday I'll make a move to reduce my avc contributions to the minimum, say €50 p/m and arrange to pay an extra €600 p/m off the mortgage.
You guys are top class. There is one other thing but I'm afraid to mention it because Brendan might tell me off for not saying it at the start...We have another investment property in Dublin in negative equity as well. Bought for €460k with a mortgage of €360k, interest only for 5 years, now on repayment but thankfully on a tracker. This means the payments are now 1750p/m at the moment with a rental income of 1300p/m...The reason I haven't been as concerned about this one is the tracker. I know I'm dumping hundreds a month to keep it going but what the hell, I'm o e of many. In a perverse way I'm more exorcised by the 120k variable rate property, deal with that and then look at the big one. I'm at leased soothed by the prospect that the interest rate can't go too mad on the tracker...Of course some genius's are suggesting that the government should put a levy on trackers as they are "not fair"..Dear o dear!
The second issue is where should you put the cash you would then have available for investment? You have rightly identified that paying off your variable mortgage could be a good "investment", I don't think you can get any better without taking risks. Definitely do not pay down your tracker. That is because it can never be better to pay down your tracker versus your variable. Now when you have paid off your variable then the issue of whether you pay down your tracker comes on the radar.
Finally, I hear what Marc is saying about using your CGT losses, but believe me I know from experience that it is hard to get a suitable fund which is in the CGT net. I don't know the first thing about property but it seems to me that your best prospects for utilising your CGT losses is to stick with the property you have as any growth from now until its original purchase price is in effect CGT free. Certainly to sell your property at a loss and move into conventional funds is not good tax planing.