Hi Brendan
30 year mortgage with 18 to go
Age 47
BOI Standard Variable
Repayments 1650 per month plus 120 overpay which I just stopped
I overpaid so as to reduce the mortgage term.
Approx figures.....
Rental income 17400
Expenses 11000 (9k mort interest, 2500 mgmt fee, 500 other)
Net rental. 6800
Tax. 3000
Mortgage. 19800
Expenses. 3000
Total Exp. 22800
Gross Rent. 17400
Tax. 3000
Gross after tax. 14400
Net cost pa. 8800 which is say 750 per month to fund
Reason accidental landlord is was owner occupier until met and moved in with partner
Broadly speaking can sustain funding but note net mortgage is 50% take home so period without rent difficult(hasn't happened yet). So am paying down approx 10k off capital.
Projecting ahead, even after increasing rent by say 150pm every two years, mortgage interest relief lowers so next cost really stays as 700 per month.
Options to reduce include securing lower rate due to better LTV or say going interest only for period (hence question)
Salaries 80k me plus 30k partner
My monthly take home = 3200
I put over 1500 pm into company DC pension (started age 37, AVC 20%)
Savings 30k me plus 70k partner
Partner tracker 1.85%, balance 190, valuation 290
Can port tracker plus 1%
Apt sale consideration due to us thinking of following options
1.Extension 150k
2. Sell both, pocket 100k then buy new say 500k
3. Sell both, pocket 100k ,then buy cheaper rental 200k borrow 100k, charge say 1400 pm so should be relatively self sustaining, even after paying tax
Above also assume 150 pocke from apt sale
At end of day it is a personal decision driven by where want to live, and level of financial security want as older. We would like some form of income and perhaps option 3 may be good.
Having said that I was wondering if anyone had opinion on how sustainable it would be to keep apt?
Am I mad to keep it going or would there be any other suggestions?
Many thanks