sell or remortgage

Shay O Toole

Registered User
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25
Hi there,Have a property worth approx 450,000.There is approx 50k mortgage outstanding on this.The missus wants to trade up and take 300k equity out of our present home and rent it while buying another for about 700k.We would be looking to take out a 300k mortgage along with the equity released.
I on the other hand am in favour of just selling the existing home and trading up.
Anyone any ideas on the above
 
Need more details to give you an opinion. How old are you? What are your incomes, other savings investments etc

Do a money maker over questionaire that should do it
 
bear in mind CGT if in a few years time you decide to sell the first house
 
Bear in mind that you would only be able to offset the interest on the existing 50K mortgage against rental income, not the 300K "released". In reality this would mean that you would go from having, probably, no tax liability on your rental income to owing Revenue approximately 50%. Big difference.

What rental income could you achieve? Have you taken into account your tax liabilities? Could you manage the payments with empty rental periods? Have you looked into your obligations with the PRTB?
 
There are lots and lots of existing threads on the whole issue of selling or keeping (as a rental property) a second property when getting married. All of the relevant tax and related issues are covered there.
 
Hi Shay,

With the ECB expected to raise interest rates by .5% this year this could affect your decision not only the cost of servicing the loan but it could also make it harder to sell the original house.

Molly
 
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