JanuaryJones
Registered User
- Messages
- 20
The BTL monthly mortage is 1580 and we are getting rent of 850. Realistically we could get rent of 1100 but the current social welfare tenants couldn't afford it and we'd be basically making them homeless.
Let's say the bank allows you to sell the property and keep the €80,000 shortfall as a a mortgage for the same term and the same rate. You will be paying €400 a month, but you will be getting absolutely nothing for it, other than reducing your net liability. (Of course, they may ask for a shorter term and at SVR, so you would be wiped out by that)
If you continue as you are, you will have reduced the mortgage by €80,000 in 5 years and will be out of negative equity.
Your investment is making a profit for you.Ok, so our investment is costing us 1100 per month
You are missing the point.
This is a profitable investment and you should keep it.
Your investment is making a profit for you.
The income exceeds the expenditure plus tax.
The cash flow problem is that you have to pay down your mortgage. You should try to ease that by restructuring with AIB.
Is that not just kicking the can down the road? What would restructuring achieve - the capital still has to be repaid?
Why not sell it? What's the worst AIB can do? Repossess the family home and crystallise that negative equity in addition to the BTL shortfall? .
He loses a profitable investment with a cheap tracker!
He is in a great position now, although it's difficult for him to see it.
Brendan
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