I am considering selling an property I have rented out and I don't see a strong reason to not do that.
The main reason for selling is I might "trade up" to a bigger hour over the next 1-3 years and because supply is fairly limited I want to be able to buy without having to sell the primary residence (which I may rent our or sell later).
So investment property is:
- valued 310k
- mortgage remaining 140k, tracker 0.55% over ECB.
- rented at €1050 per month (market rent is about €1600-€1800)
If I sell then I save 1.5k-2k per year on insurance, property tax, mortgage insurance and upkeep. I avoid any big spends in the future like failed gas boilers, leaks or who knows what. If the current tenant moves out I would have to spend 5k at least to paint\redecorate (the house hasn't been painted or done up in anyway for 20 years). There are a good few other issues that would need addressing within a few year, at least another 5k and probably more.
If I sell then I pay less tax so I think I can free up maybe 7-8k in cash per year.
And I can buy a new primary residence without being in a chain so I think that has advantages.
As an investment property it doesn't make much return?
The main reason for selling is I might "trade up" to a bigger hour over the next 1-3 years and because supply is fairly limited I want to be able to buy without having to sell the primary residence (which I may rent our or sell later).
So investment property is:
- valued 310k
- mortgage remaining 140k, tracker 0.55% over ECB.
- rented at €1050 per month (market rent is about €1600-€1800)
If I sell then I save 1.5k-2k per year on insurance, property tax, mortgage insurance and upkeep. I avoid any big spends in the future like failed gas boilers, leaks or who knows what. If the current tenant moves out I would have to spend 5k at least to paint\redecorate (the house hasn't been painted or done up in anyway for 20 years). There are a good few other issues that would need addressing within a few year, at least another 5k and probably more.
If I sell then I pay less tax so I think I can free up maybe 7-8k in cash per year.
And I can buy a new primary residence without being in a chain so I think that has advantages.
As an investment property it doesn't make much return?