Hi all,
First time poster, but have lurked here for a while.
We would really like some advice on our current situation. Ideally, we would also like to meet with an independent adviser in real life, but that's another thread.
We own a flat in London (rented out). It was purchased in 1999, and is currently valued at approximately £320,000. There is a mortgage outstanding of £140,000. We remortgaged it 2 years ago. The plan at the time was to buy ourselves out of the negative equity and house we were in, and leave some over for a deposit on a house in another area of Dublin.
For various reasons, we haven't bought another house yet and are now facing rapidly increasing prices. Our question is whether or not to take advantage of an increasing London market and sell the property. We would use some of it to buy ourselves the house we want here, and invest the rest. We are also aware that as of April 2015, we will be subject to 28% Capital Gains Tax on the flat, whereas there would be no tax to pay now. At the moment, the rent covers the mortgage on the flat, with a little left over that goes towards management fees and repairs etc.
We were stung badly when we bought here in 2005, and I am so, so wary of getting sucked into the whole stinking mess of rapidly increasing prices again, and the panic that accompanies it. That said, rent is also going up, and we really want a home to settle ourselves into.
We have young children and both work hard to provide for them. I always thought that the flat in London was our future insurance, but as things stand, selling it could really help us to buy, and would avoid the CGT that would be applicable next year.
I'm sure there's lots of necessary information that I haven't provided in order to offer advice, but post questions and I will do my best to answer them.
I would really appreciate any outside perspectives and advice. Thanks
First time poster, but have lurked here for a while.
We would really like some advice on our current situation. Ideally, we would also like to meet with an independent adviser in real life, but that's another thread.
We own a flat in London (rented out). It was purchased in 1999, and is currently valued at approximately £320,000. There is a mortgage outstanding of £140,000. We remortgaged it 2 years ago. The plan at the time was to buy ourselves out of the negative equity and house we were in, and leave some over for a deposit on a house in another area of Dublin.
For various reasons, we haven't bought another house yet and are now facing rapidly increasing prices. Our question is whether or not to take advantage of an increasing London market and sell the property. We would use some of it to buy ourselves the house we want here, and invest the rest. We are also aware that as of April 2015, we will be subject to 28% Capital Gains Tax on the flat, whereas there would be no tax to pay now. At the moment, the rent covers the mortgage on the flat, with a little left over that goes towards management fees and repairs etc.
We were stung badly when we bought here in 2005, and I am so, so wary of getting sucked into the whole stinking mess of rapidly increasing prices again, and the panic that accompanies it. That said, rent is also going up, and we really want a home to settle ourselves into.
We have young children and both work hard to provide for them. I always thought that the flat in London was our future insurance, but as things stand, selling it could really help us to buy, and would avoid the CGT that would be applicable next year.
I'm sure there's lots of necessary information that I haven't provided in order to offer advice, but post questions and I will do my best to answer them.
I would really appreciate any outside perspectives and advice. Thanks