Sell or keep rental property.
I own a rental property in a large town. Purchased the house in 2003 for €140K and spent €40K on renovations in 2010.
Rented on RAS scheme to the same tenants for the last 8 years. They are good tenants and I have had few problems.
House value circa €170K. Mortgage balance to be repaid is circa €47 K. On a tracker rate of .6% with term of about 7 years remaining. Mortgage repayments are €525 per month and rent received from the Council is €1050 per month.
I had intended keeping the house for another few years and then clearing my own PPR mortgage with the proceeds. However, a neighbouring house to the rental property sold in the last few weeks for a strong price and I’m thinking I might be better to sell now while the market is strong. The auctioneer says he has 3 interested parties.
Am I better to sell or keep it? Financially, I am comfortable with a safe job and pay higher rate of tax. I have no long-term ambitions of being a landlord. However, I would like to maximise my return on investment.
I am also considering trading up my primary residence. I have heard mention of a house coming up for sale in my area in the next few months. This house is very attractive to me. Its quite possible I would need to liquidate the rental property to assist with the purchase/renovation of this house. There is no certainty that said house will come up for sale.
Am I better to:
A. sell rental property now and reduce mortgage on PPR? or
B. Sell rental property and keep cash reserves for new PPR purchase? or
C. Keep rental property for another while and see how things go?
Advice appreciated.
I own a rental property in a large town. Purchased the house in 2003 for €140K and spent €40K on renovations in 2010.
Rented on RAS scheme to the same tenants for the last 8 years. They are good tenants and I have had few problems.
House value circa €170K. Mortgage balance to be repaid is circa €47 K. On a tracker rate of .6% with term of about 7 years remaining. Mortgage repayments are €525 per month and rent received from the Council is €1050 per month.
I had intended keeping the house for another few years and then clearing my own PPR mortgage with the proceeds. However, a neighbouring house to the rental property sold in the last few weeks for a strong price and I’m thinking I might be better to sell now while the market is strong. The auctioneer says he has 3 interested parties.
Am I better to sell or keep it? Financially, I am comfortable with a safe job and pay higher rate of tax. I have no long-term ambitions of being a landlord. However, I would like to maximise my return on investment.
I am also considering trading up my primary residence. I have heard mention of a house coming up for sale in my area in the next few months. This house is very attractive to me. Its quite possible I would need to liquidate the rental property to assist with the purchase/renovation of this house. There is no certainty that said house will come up for sale.
Am I better to:
A. sell rental property now and reduce mortgage on PPR? or
B. Sell rental property and keep cash reserves for new PPR purchase? or
C. Keep rental property for another while and see how things go?
Advice appreciated.