Hi,
I'm looking at moving home at the moment and I'm hoping for some advice on whether I am better off keeping my current family home and renting it, or selling. Any insight much appreciated.
Purchase price of property in 2006: €580,000
Current Value: €420,000
Outstanding Mortgage: €289,000 with 19 years remaining
Current Mortgage Rate: 0.95%, BOI tracker
Current Mortgage Repayments: €1,365/month of which interest €230
Expected Rent: €2,000
The options as I see them are:
a) keep the property and rent it. I've calculated that this will cost me €500/month at current interest rates (not 100% sure about my calculations);
b) sell and put (some or all of) the 130k equity into my pension (I'm 43);
c) sell and use the equity to reduce the size of the mortgage I'll be taking out on my new home.
If my €500/month calculation is correct, in case of options b and c I figure I could instead invest the 500+tax relief into pension every month.
Based on some similar threads I've read here, I think I'm right in saying that holding on to the property represents a good opportunity for potential growth, tax-free up to the original purchase price. I'm curious to know just how valuable I should consider this relative to the other options but I'm not sure that I'm informed enough to see all of the variables.
Any advice gratefully accepted!
I'm looking at moving home at the moment and I'm hoping for some advice on whether I am better off keeping my current family home and renting it, or selling. Any insight much appreciated.
Purchase price of property in 2006: €580,000
Current Value: €420,000
Outstanding Mortgage: €289,000 with 19 years remaining
Current Mortgage Rate: 0.95%, BOI tracker
Current Mortgage Repayments: €1,365/month of which interest €230
Expected Rent: €2,000
The options as I see them are:
a) keep the property and rent it. I've calculated that this will cost me €500/month at current interest rates (not 100% sure about my calculations);
b) sell and put (some or all of) the 130k equity into my pension (I'm 43);
c) sell and use the equity to reduce the size of the mortgage I'll be taking out on my new home.
If my €500/month calculation is correct, in case of options b and c I figure I could instead invest the 500+tax relief into pension every month.
Based on some similar threads I've read here, I think I'm right in saying that holding on to the property represents a good opportunity for potential growth, tax-free up to the original purchase price. I'm curious to know just how valuable I should consider this relative to the other options but I'm not sure that I'm informed enough to see all of the variables.
Any advice gratefully accepted!