Negative Equity on PPR, Need to move, Calculations as 1st time Landlord

Your figure for depreciation on furniture is low.

If your bank contract does not require you to inform the bank the property has changed from PPR then do not say anything to them. Banks are going after investors currently. Here on AAM (and in my own case) people are battling banks who are changing the interest rates to much more punitive rates and this will continue. They are not allowed go after homeowners so are focusing on investors.

If you can afford capital and interest then by all means do so. Before you move could you renegotiate your mortgage to a longer term to bring down the payments.

Or if you have a very secure job can you see if the bank will let you sell and keep the 100K negative equity as a loan at the current mortgage rates.

Be aware that being a landlord is not for everybody.
 
Bronte said:
Your figure for depreciation on furniture is low.

Thanks for this. Thought it was a bit low but do I need the original receipts from the furniture in order to claim this or are you allowed claim a reasonable estimate.

Also just checked the mortgage contract and there is no mention of informing the bank if the property is changed from PPR to investment.
Also the mortgage is already a 30 year term with 26.5 years remaining so probably not much point in extending the loan unless we absolutely have to.

I must still go in and have a chat with them though about what options may be available to us, the 100k left there at mortgage rates might not be the worst option, I could probably see a way around having this wiped out in 5 years or so if we tried hard!!

I really don't want to be a landlord in the long term, I just don't want the hassle but if needs must I will live with it until I can realistically afford not to be a landlord anymore.. The day the negative equity is reduced to the level where I can get out without too much pain I will be gone and wave goodbye with my expensive lesson.

oldnick, I presume what you are suggesting is a negative equity mortgage. The thing is I don't actually want to purchase somewhere now as we are based in Dublin but would consider moving away from Dublin in a few years time. With the market as it is there is no point taking a punt on house prices to look to sell again in 2-3 years time. Personal circumstances will make it difficult and undesirable to stay in the apartment for that time but maybe we'll have to live with it.
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wELL, ONCE AGAIN,TIPPING GOOD LUCK..

Just to comment on a couple of your points
- the fact that the bank has nothing in the contract about making your PPR and rental home does not mean that you should say nothing. You are getting 180euros MIRAS and Revenue make it quite clear that this isn only for PPR not forn a making it a rental place. (See Revenue.ie) Anyway that's not realy important -just felt a bit annoyed at posters inferring you say nothing.

- you are already ,in effect, on a negative equity mortgage BY100K mybe more.
And you hope that your new rental income will cover this, and indeed help towards renting a house.
You may be right -but as I keep repeating there are many trials and tribulations in renting and if you peruse the various posts concerning rent, here and in irishlandlord.ie, you will see that it is not a black-andwhite accounting excercise. It can be a real pain which may not get you the income you need.

I dont know where you live and the type/size of the apt you have or the type of house you need, so I cannot say this with certainty....
- if your bank extends another 100k on hopefully good terms, would not this pay for a house in your area ? Assuming you sell the apt.

Yes, your apt has collapsed in value - just as that house you can buy has.
I am convinced , but who knows, a house in the same area as an apt will hold its value better (or decrease less)
 
Tipping does not have to tell his bank anything about renting if it is not in his contact. Whatever you do Tipping do not tell the bank. He just informs revenue that he no longer wants mortgage interest relief.

In an ideal world you should have receipts for everything (you may have bought things on credit, your bills are as good as a receipt). Take a reasonable cost for the furniture.
 
tipping said:
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I must still go in and have a chat with them though about what options may be available to us, the 100k left there at mortgage rates might not be the worst option, I could probably see a way around having this wiped out in 5 years or so if we tried hard!!
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This is actually a really important point. Here we have someone who can move on in life, they would be able to sell the house, repay the negative equity if left at mortgage rates in 5 years and could then start again. A point our banks/politicians/economists ought to looking to as part of the solution.

It's a very important debate in our current economic situation.
 
If it's not in the mortgage terms and conditions - does the bank have the right to force you off a tracker if you rent out your PPR? I'm not sure there's a definitive answer to this. Any/all responses appreciated!
 
Seems to be a grey area! I plan to inform the Revenue but I do not plan to tell the bank that I will be renting out property. It does not say anything in my T&C's that I have to. I will also inform the prtb once I rent the property. If the bank continue to provide mortgage interest relief I will make sure to repay it when I complete my annual tax return. Whilst this may not be perfect, I feel I am being clear with the Revenue and not doing anything untoward.
 
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