I'll clarify a bit here about rent we expect to receive. 900€ (max and we'd be doing good to get it too!) per month, x12= 10800 pa- total expenses of 4610, leaving a pre tax net of 6190, this amt is then subject to tax at the higher rate, which will not leave sufficient to pay mortgage of 611x12,resulting in our making up the shortfall.
With that information, I can explain it another way.
The house is worth €215k.
If you sell it, you will be able to use the proceeds to
1) Pay off your tracker mortgage of €80k - € 800
2) Not borrow €30k off credit union at 9% - €2,700
3) Not borrow €100k from Bank of Ireland at 4% - €4,000
So selling it, saves you €7,300
Keeping it will earn you an income of €3,000 after tax.
You see the reason for all this prevarication is because of sentiment attached to both houses which is affecting my rational thinking.
Well preserve the memory of your existing home. If you rent it out, you will be emotionally upset, when the tenants don't treat it with the love and respect you deserve.
In addition, I currently save 350€ per month into a consensus fund, sure would I not be better diverting that into my new investment property?
Of course you would. Otherwise, you are effectively borrowing to invest. If you have money already saved, cash it and use it to pay for the refurbishment.
The only issue here is timing. You may want to hold onto your current house while you refurbish your new home. But you should sell it as soon as you move into your new home.
I think it's very unlikely, but ask whomever you have your current tracker with if they will move it to the new home. They might. Especially if you are borrowing more.
Talk to a mortgage broker who might present your case better to the lenders than you are doing.
Brendan