Home in positive equity, but three investment properties in negative equity

You cannot balance it because now you've brought another person/family into it.
 
Nic said:
Selling the family home will result in divorce and really is not an option for us. So, I need to sell one car, find another income stream (2nd job), win the lottery. This is what I get for trusting the old bricks and mortar !!!!!
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I think you need to talk with your wife and go through the figures and options together. The worst thing is to do nothing and lose also the equity in the family home, because that is what you are facing unless you take action now.

If you don't position yourself to deal with the banks, when they come knocking, and they will, then they will take your home.

Sorry to be so blunt.
 
Hi Bronte

Getting family help is a moot point in this case, so let's not debate it any further in this thread.

I will put it on my list of to do Key Posts

Brendan
 
Brendan, in you earlier posts you advise that all 3 investments are profitable as the rent is more than the interest + costs. On that basis, would the banks not look favorably on this and if I can afford to contribute something to capital repayments then better again. If I can get another 5 years I am hoping the situation will improve i.e. property value increased, mortgage decreased etc..
 
Hi Nic

They are only profitable for you because you have such cheap tracker rates. The lender is losing money because of these.

You should try to get a rescheduling from each of the banks first.

Brendan
 
Bronte said:
As outlined on other threads I disagree with you in relation to tax, as far as I'm concered he's paying around 54% or thereabouts. He is in addition paying exceedingly low interest so these properties are quite a headache tax wise I would have thought.
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Hi Bronte

Actually, I don't think the OP is paying any income tax at all on his net rental profits (given the available Section 23 relief). This would actually be a compelling argument in favour of paying down the debt on his rental properties but that is a moot point if he is not prepared (for perhaps understandable reasons) to realise the equity in his PPR, which appears to be the sole source of available capital.

On the more general point, I would be interested to see a reasoned argument (perhaps in a separate thread) why you believe it is inappropriate to use an average tax rate when comparing an investment that is subject to a tiered tax rate (such as income tax) to an investment that is subject to a flat tax rate (such as DIRT).

I obviously appreciate that every Euro earned above the relevant ceiling is subject to income tax at the marginal rate (plus USC and PRSI) but that is a different point. Again, I would make the point that all sources of income are fungible for income tax purposes.
 
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Sarenco said:
On the more general point, I would be interested to see a reasoned argument (perhaps in a separate thread) why you believe it is inappropriate to use an average tax rate when comparing an investment that is subject to a tiered tax rate (such as income tax) to an investment that is subject to a flat tax rate (such as DIRT).
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Hi Sarenco

Will you start a fresh thread and set out your case in that thread?

Take a fairly simple example of maybe a home owner with one investment property to keep the principle simple.

Brendan
 
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