Hi All
I would really appreciate your help and advice. Both myself and my husband are clueless re money matters and we have no-one to talk to re this. We have a rental property which we rent out for €1200 per month. 4 bed 3 bath, lovely location. Mortgage is €1135 per month. We bought the property in 2006, got into arrears during recession, house was nearly re possessed, moved into my family home with my dad (we will inherit house) and started renting it out in 2016 with the same tenants since. BOI capitalised the arrears (approx €25000) so our mortgage will run until we are 67 years old - another 24 years. We made such a stupid mistake buying the house so young we have been absolutely terrified of making stupid mistakes since then. Our tenants have just told us they are looking to buy and are wondering if we would like to sell to them. I'm just wondering which would be more beneficial to us. I don't want to get a lump sum now and squander it when I've been looking at having a lump sum (house) at 67 for retirement. My husband has a small pension and I have none, I know I need to sort this. In 2008 we had 5 short term debts and we managed to pay 3 in full. We still have a boi loan that went legal (€11500 balance and €50 paid monthly) and a Cabot financial loan (€8300 balance and €25 paid monthly)in my husbands name. We have never had a lump sum to sort these balances so we just pay them monthly. This appears on my husbands credit register so we're unlikely to be approved if we wanted to move mortgage.
Current mortgage balance €220,000
Current rental income monthly €1200 but should be way more
Current mortgage repayment €1135
Purchase price of house €265,000
I would hope to make at least €400,000 if we dold the house. We would have to pay CGT. I do feel we're getting nowhere with the mortgage but I'm fearful of getting rid of as asset.
I would really appreciate your help and advice. Both myself and my husband are clueless re money matters and we have no-one to talk to re this. We have a rental property which we rent out for €1200 per month. 4 bed 3 bath, lovely location. Mortgage is €1135 per month. We bought the property in 2006, got into arrears during recession, house was nearly re possessed, moved into my family home with my dad (we will inherit house) and started renting it out in 2016 with the same tenants since. BOI capitalised the arrears (approx €25000) so our mortgage will run until we are 67 years old - another 24 years. We made such a stupid mistake buying the house so young we have been absolutely terrified of making stupid mistakes since then. Our tenants have just told us they are looking to buy and are wondering if we would like to sell to them. I'm just wondering which would be more beneficial to us. I don't want to get a lump sum now and squander it when I've been looking at having a lump sum (house) at 67 for retirement. My husband has a small pension and I have none, I know I need to sort this. In 2008 we had 5 short term debts and we managed to pay 3 in full. We still have a boi loan that went legal (€11500 balance and €50 paid monthly) and a Cabot financial loan (€8300 balance and €25 paid monthly)in my husbands name. We have never had a lump sum to sort these balances so we just pay them monthly. This appears on my husbands credit register so we're unlikely to be approved if we wanted to move mortgage.
Current mortgage balance €220,000
Current rental income monthly €1200 but should be way more
Current mortgage repayment €1135
Purchase price of house €265,000
I would hope to make at least €400,000 if we dold the house. We would have to pay CGT. I do feel we're getting nowhere with the mortgage but I'm fearful of getting rid of as asset.