So you have to sell this anyway in 7.25 years.
It's a profitable investment
Rental income: €18,000
Mortgage interest: €10,000 (€216k @4.5%)
Other expenses : €3,000
Profit: €5,000
After tax: €2,500
Although it's profitable, it's risky from a number of points of view
1) The biggest risk is that you may not be allowed to sell it empty. You may have to sell it with the tenants which will greatly devalue it.
2) The tenants may stop paying rent
3) House prices might fall
You are not financially resilient enough to handle these risks, so sell the property as soon as you can and while you are allowed to do so.
Brendan
If you are not allowed to sell it empty but only with tenants, only LL would be possible buyers and currently only cash investors, which would greatly reduce the value of your property.Just to clarify pt 1 above..1) The biggest risk is that you may not be allowed to sell it empty. You may have to sell it with the tenants which will greatly devalue it. - Would this just be from our own financial perspective or would bank dictate same ? Sorry, just need to get clear in mnd what you mean, Thanks
The biggest risk is that you may not be allowed to sell it empty.
Why not keep a 10-15k emergency fund, pay the rest of the savings off the PPR, then if you sell the investment property you should have another 40-50k on hand to either pay another lump sum off the PPR or, more likely, to use for kids education.O dear, no idea what we are going to do. We have reviewed and putting down all our savings against our PPR is not an option for now unfortunately due to nature of our jobs etc Need to look at next best option.
I think that your strategy in terms of rental is fairly risky considering the current rental market and the fact that you have to sell, all the more do that you seem to imply they could be job risks. How are you going to time the market? When are going to decide you are out? How much more do you expect to get from it?Thank you ,yes. Think we will hold onto tracker with the 12 years remaining and hopefully, we will be making the right decision. We need to make our decision in next couple of days and decide how much we are comfortable with paying off now on the PPR. 10/15k left only on deposit still seems a little scary to me to have to hand just in case car goes or if property prices do decline in next 2/3 years and selling not an option and we want to wait another couple of years for a little recovery before selling.
Why not keep a 10-15k emergency fund, pay the rest of the savings off the PPR, then if you sell the investment property you should have another 40-50k on hand to either pay another lump sum off the PPR or, more likely, to use for kids educa
I think that your strategy in terms of rental is fairly risky considering the current rental market and the fact that you have to sell, all the more do that you seem to imply they could be job risks. How are you going to time the market? When are going to decide you are out? How much more do you expect to get from it?
Price are at an all time high.t
enants in so fixed term 12 mth contract
Tenants have 12 month contract. Do we need to wait until month 12 to serve the 90 day notice or can you send notice on month 9,they are new tenantsI think that your strategy in terms of rental is fairly risky considering the current rental market and the fact that you have to sell, all the more do that you seem to imply they could be job risks. How are you going to time the market? When are going to decide you are out? How much more do you expect to get from it?
Price are at an all time high.
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