I think you've answered your own question. If it was me I would sell and simplify my life.My question is am I better off selling the investment property and putting lump sum off current mortgage . . I am paying nearly half of rental income over to revenue so the tracker mortgage is of no benefit to me really . . I am thinking that I don't really need the hassle of being a landlord into the future.
Yes you have to pay tax on the income, but you have to pay tax on all income. That's not really an argument.
I'm not sure a possible future separation is a strong reason to hang on to a property. Perhaps a bit like keeping your name to simplify things post divorce. May prove self-fulfilling.A second house is handy. It's probably inconceivable to you now,but some couples do separate. Having one mortgage free home is difficult to split. Having two homes with mortgages is much easier to deal with. I know many couples who have separated who would have loved to have a second property.
As you have a gross income of €160k, it's unlikely that this €2k is worth the hassle.
Here are the numbers:
The 5K interest cost of the equity, is this the first time you put that in the table? What's the logic on that? (I realise you get the figure from his equity of 150K @3.2% but why?
I'm not sure a possible future separation is a strong reason to hang on to a property.
I agree with your figures, but its important for a reader to realise that the conclusion, €2,000, is how much better off he is projected to be by keeping the property than by doing the next best thing.
I don't mean to sound pedantic but there's no certainty that the OP would be better off by €2,000 by keeping the rental - that's the projected margin over the return on paying down the PPR mortgage.
One or more of the various risks identified above could turn up and upset the projections - perhaps dramatically so.
It is true that the savings from repaying the mortgage are guaranteed, while the rental profit is just a projection.
However if we look at the intangibles beyond Brendan's figures there is the possibility for capital gain in holding the property.
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