Sell or Rent

J

JudeMcA

Registered User
Messages
5
Hi,

My partner and I planning on leaving Ireland when we retire and travelling for a while before settling down somewhere that we can eat breakfast outside nine months of the year. We have no children.

I've been struggling with the decision whether to sell my house or rent it out.

It's in Dublin 6 and the mortgage will be about 12% of the value of the house when I retire. Looking at current rents, agency fees (as I'll be out of Ireland), maintenance, property tax, insurance and income tax it would seem to me that the only reason to rent would be in the hope of house price inflation. If I sold the house and invested the money in a fund (equities, bonds, cash) I'd probably make a bigger after tax/costs return than renting.

Also the latest Daft report shows asking prices for my type of house flat or falling last year.

Am I missing anything?

Thanks
 
JudeMcA said:
Am I missing anything?
Click to expand...

If I was in your position and I was planning to eventually settle down in another country as you intend to do, I'd be inclined to sever all financial ties with Ireland by selling up.

Investing the proceeds of the sale where you can access them easily abroad would be the way I'd be going.

Also... you keep the house and you rent it out ... look at all the potential pitfalls you could encounter. You've even mentioned some of them yourself.
 
JudeMcA said:
Hi,

Am I missing anything?
Click to expand...

Your marbles, if you cut yourself off completely.

You have a property in a super location, in which its location is second to none. Yes we may have a dysfunctional rental system akin to a lottery, but that negativity can be reduced with the right checks and agent appointed. Nothing is guaranteed.

There are as many pros as there are cons with such a move, but once your out, your out.
So if selling is the only way to finance your dream, its crazy, if not, give it a few years before committing to such a move, as you will either love your new life, or regret it by then.
 
PaddyBloggit and LS400,

Thanks for your comments, LS400 you echo my brother's sentiments it's better keep a foot hold here until I'm doubly sure I don't want to return.
 
JudeMcA said:
My partner and I planning on leaving Ireland when we retire and travelling for a while before settling down somewhere that we can eat breakfast outside nine months of the year.
Click to expand...

When I read that sentence, I read into it that the decision was 100% made to go and not come back.

If you aren't doubly sure about whether you'll return or not then I'd certainly be holding onto the property.
 
PaddyBloggit,

We are sure now but circumstances change, I still think we'll sell, as even if we were staying in Ireland we'd downsize and the house will need a new roof sooner rather than later. So renting could be a very costly option.

Thanks for your comments, more research to do......
 
I'm less than 8 years away from retirement and I'm decluttering already. I've already bought the downsized house. I'm still living and working elsewhere. The downsized house is sorted more or less.

As you say .... you've lots more thinking and research to do. But you have time to do it as you're not retired yet.
 
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