Dilemma - I really, really don't want to crystalise a 140k capital loss, but I don't want the hassle of being a landlord. Has anybody any advice??
In my mind the capital loss is a perception issue - your house has dropped in value and theres a 140k paper/sunk cost.
Every house in the country has dropped in value - therefore your purchasing poiwer remains largely the same.
I am assuming your role is moving away from a large town - in which case theres a chance you will actually be getting a bigger house for the same money.
my concern if I were you would be giving up on the tracker mortgage as you have probably the best one that was offered. However since you have equity you are in a great position and can also add savings to this - 170k should buy you an equivalent house without a mortgage - so again the mortgage like your percieved capital loss is an irrelevant point.
paddy
There is no capital loss, you have positive equity. There's no point thinking well if I'd sold then I'd have made this much. You're going to be buying in a depressed market, think on the positive side - I'm getting this new house for 200k when it was worth 450k 6 years ago...
There is a capital loss.
Yes, I do have positive equity.
Yes, true, house prices have fallen everywhere, but are still substantially dearer in my destination city than where I own now.
You can offset the loss in your example against any future gain in shares or other taxable gains. So even there, the loss is not a full loss if you are lucky in future investments of course.
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