We recently moved into a new house we bought and we are trying to decide should we rent or sell our first home.
Its well maintained and has €200K left on the the tracker mortgage (0.8% on top of base rate). Based on estate agents estimates its worth about what we paid for it, about €370K. So less fees etc you get about €160K.
Rent would be between €1800-2000 per month, mortgage is ~950 at current rates.
Our financial advisor thinks we would be crazy to sell it given we didn’t have to sell to raise a dep for our 2nd home. However, if we rent it half the rent pays the mortgage and the other half is taxed, and betweencosts associated with letting a home we don’t get any income at the end of it. We just pay the mortgage and hopefully cover our tax bill
If sell it now, we get back what we put in, less what we spent on the house and any interest payments (low, it’s a tracker).
Is €160K now worth €370K in 20 years time? I’m assuming the house is worth ~370K in 20 years time, maybe a little more. I do wonder about stagnation and low long term growth, I don’t see the house shooting up in value And I wonder would I be better investing the money in something else, paying off our new mortgage (it’s at a higher rate though fixed for 3 years). I have never been a landlord, and I would use a letting agent.
intested to hear other people’s thought.
Its well maintained and has €200K left on the the tracker mortgage (0.8% on top of base rate). Based on estate agents estimates its worth about what we paid for it, about €370K. So less fees etc you get about €160K.
Rent would be between €1800-2000 per month, mortgage is ~950 at current rates.
Our financial advisor thinks we would be crazy to sell it given we didn’t have to sell to raise a dep for our 2nd home. However, if we rent it half the rent pays the mortgage and the other half is taxed, and betweencosts associated with letting a home we don’t get any income at the end of it. We just pay the mortgage and hopefully cover our tax bill
If sell it now, we get back what we put in, less what we spent on the house and any interest payments (low, it’s a tracker).
Is €160K now worth €370K in 20 years time? I’m assuming the house is worth ~370K in 20 years time, maybe a little more. I do wonder about stagnation and low long term growth, I don’t see the house shooting up in value And I wonder would I be better investing the money in something else, paying off our new mortgage (it’s at a higher rate though fixed for 3 years). I have never been a landlord, and I would use a letting agent.
intested to hear other people’s thought.