We recently sold an investment property at a loss. We bought it at the very top of the market in 2005 and it took until 2023 for the price to come anywhere near the original purchase price. We also had our share of difficult tenants as well as some great tenants over the years.
We are lucky enough to have €100k left over from the sale which we are considering using to pay off another investment property.
This would leave us debt free. We have a tracker mortgage on the property. If the tracker rate hadn't gone up so much I wouldn't need to ask the question. However, it seems wrong to be paying €6k interest on a €100k loan when we have the capacity to pay it off.
We appreciate how much luckier we are than others who lost out more in this accidental landlord scenario. It hasn't been an easy eighteen years but we got through it, albeit at a bit of a loss on the first property as well as a lot of tight corners being navigated over the years.
It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
Annual gross income from pension
E36,000
Annual gross income spouse:
E35,000
Type of employment:
Both retired public servants
Expenditure pattern:
We are both generally 'savers'
Rough estimate of value of home
E550,000
No mortgage on home
Other borrowings – car loans/personal loans etc
No
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
Our main saving was done through paying down the capital part of the loan on investment property. The rental income was covering most of the expenses such as interest, tax, management fees
Do you have a pension scheme?
We are both on pension now.
Do you own any investment or other property?
Yes.
€100,000 outstanding on a tracker loan on an investment property worth €230,000
Ages of children:
None.
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
Should we use the €100,000 to pay off the remaining mortgage of €100,000 on the investment property.
Thanks