Hi, not sure if i have this in the correct forum so please move if i dont.
My query is whether or not myself and husband should rent out an apartment we are currently unsuccessfully trying to sell.
Details are as follows.
Mortgage on 2 bed apt - €150,000 outstanding, 26 years left @ 5.79% with Ulster Bank, monthly payments €860
We also have a mortgage on 3 bed house we are living in
€296,000 outstanding, 24 years left @ 4.99 (discounted tracker for another year) with PTSB, monthly payments €1,780.
We have had apt for sale almost 2 years, there are 4 other apts in complex for sale ranging in price from €199k to €248k and none selling.
Personally i would sell for less than the €199k but as there seems to be no interest at the moment im not sure if we reduced the price more would it sell anyway.
Husband bought property 4 years ago as FTB and house ceased to be his PPR a year ago.
Rental in area for similar properties is about €800- €875 a month about 10 properties in area currently for rent.
I was considering renting property out at around €700 -€750 a month in the hope of attracting tenants quickly.
Questions are
1) If interest on mortgage repayments is around €600 and rental income is €700, profit of €1200 a year.Can i offset management fees of €1,800 per annum against this and therefore pay no income tax?
2)If i switch mortgage to a different bank will it be an investment mortgage?
3)Plan was originally to use profit on sale of appt to pay off principle of mortgage on house, would you advise trying to sell apt for about €180,000 and putting €30,000 (less fees) against it and just be done with it.
4)As my husband has owned the apt 4 years before renting will he be liable to stamp duty clawback (i find the new rules confusing)
Thanks very much i know its difficult to advise but any additional info or guiding would be much appreciated, especially any liabilities i may have overlooked.
Please let me know if further info required.
My query is whether or not myself and husband should rent out an apartment we are currently unsuccessfully trying to sell.
Details are as follows.
Mortgage on 2 bed apt - €150,000 outstanding, 26 years left @ 5.79% with Ulster Bank, monthly payments €860
We also have a mortgage on 3 bed house we are living in
€296,000 outstanding, 24 years left @ 4.99 (discounted tracker for another year) with PTSB, monthly payments €1,780.
We have had apt for sale almost 2 years, there are 4 other apts in complex for sale ranging in price from €199k to €248k and none selling.
Personally i would sell for less than the €199k but as there seems to be no interest at the moment im not sure if we reduced the price more would it sell anyway.
Husband bought property 4 years ago as FTB and house ceased to be his PPR a year ago.
Rental in area for similar properties is about €800- €875 a month about 10 properties in area currently for rent.
I was considering renting property out at around €700 -€750 a month in the hope of attracting tenants quickly.
Questions are
1) If interest on mortgage repayments is around €600 and rental income is €700, profit of €1200 a year.Can i offset management fees of €1,800 per annum against this and therefore pay no income tax?
2)If i switch mortgage to a different bank will it be an investment mortgage?
3)Plan was originally to use profit on sale of appt to pay off principle of mortgage on house, would you advise trying to sell apt for about €180,000 and putting €30,000 (less fees) against it and just be done with it.
4)As my husband has owned the apt 4 years before renting will he be liable to stamp duty clawback (i find the new rules confusing)
Thanks very much i know its difficult to advise but any additional info or guiding would be much appreciated, especially any liabilities i may have overlooked.
Please let me know if further info required.