Key Post should I sell an investment property with a tracker?
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Brendan Burgess
Founder
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You should provide the following information to get a meaningful response
Brendan
Key Post - Basic information required for the "Money Makeover" forum
It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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Brendan
Tracker mortgage transferred from kbc to boi: is the the tracker is a good option for us anymore?
Original apartment - second mortgage- rental property
1) Existing tracker margin interest rate 5.6%
2) Amount outstanding on your mortgage: approx 150k
3) Remaining term 10yrs
4) Lender BOI
5) Value of your home 375k
6) Might you trade up or overpay your mortgage? No, but considering selling as we have another high mortgage on our main living space.
7) Do you face any barriers to switching? E.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. No
8) What rates are you considering fixing at? not sure.....need advice
9) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary. BER B2
Personal details
Age: 55
Spouse’s/Partner's age: 55
Number and age of children: 3 teenagers
Income and expenditure
Annual gross income from employment or profession: 120K
Annual gross income of spouse: 90K
Monthly take-home pay: 8K +
Type of employment: professional
In general are you: saver
Summary of Assets and Liabilities
Family home worth €650k with a €310k mortgage
2nd home worth €375k with a €150k mortgage
Cash of €50K
Defined Contribution pension fund: €150K
Company shares : 0
Family home mortgage information
Lender no1: PTSB, no2: BOI
Interest rate no1: 4% ,no2: 5.6%
Type of interest rate: no1: fixed, no2: tracker
If fixed, what is the term remaining of the fixed rate?
Monthly repayment: no.1: 3.75K, no.2: 1.5K
Other borrowings – car loans/personal loans etc
none
Other information which might be relevant
Life insurance: yes
What specific question do you have or what issues are of concern to you?
no. 2 property is becoming increasing difficult to rent under higher interest rates, should we sell
Should sell up or move mortgage providers....
Original apartment - second mortgage- rental property
1) Existing tracker margin interest rate 5.6%
2) Amount outstanding on your mortgage: approx 150k
3) Remaining term 10yrs
4) Lender BOI
5) Value of your home 375k
6) Might you trade up or overpay your mortgage? No, but considering selling as we have another high mortgage on our main living space.
7) Do you face any barriers to switching? E.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. No
8) What rates are you considering fixing at? not sure.....need advice
9) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary. BER B2
Personal details
Age: 55
Spouse’s/Partner's age: 55
Number and age of children: 3 teenagers
Income and expenditure
Annual gross income from employment or profession: 120K
Annual gross income of spouse: 90K
Monthly take-home pay: 8K +
Type of employment: professional
In general are you: saver
Summary of Assets and Liabilities
Family home worth €650k with a €310k mortgage
2nd home worth €375k with a €150k mortgage
Cash of €50K
Defined Contribution pension fund: €150K
Company shares : 0
Family home mortgage information
Lender no1: PTSB, no2: BOI
Interest rate no1: 4% ,no2: 5.6%
Type of interest rate: no1: fixed, no2: tracker
If fixed, what is the term remaining of the fixed rate?
Monthly repayment: no.1: 3.75K, no.2: 1.5K
Other borrowings – car loans/personal loans etc
none
Other information which might be relevant
Life insurance: yes
What specific question do you have or what issues are of concern to you?
no. 2 property is becoming increasing difficult to rent under higher interest rates, should we sell
Should sell up or move mortgage providers....
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Sconeandjam
Registered User
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- 324
If you sell you have to work out if you have to pay cgt on the rental property.
What was the purchase of the rental?
How long have you owned it and have you lived in the property as you ppt for a period of time?
Are you restricted to rpz and what is the current rent you can get?
What was the purchase of the rental?
How long have you owned it and have you lived in the property as you ppt for a period of time?
Are you restricted to rpz and what is the current rent you can get?
Brendan Burgess
Founder
- Messages
- 52,118
It's very difficult to follow your posts. If you can't figure out what information is relevant to provide, it's unlikely that you will be able to work out what information is relevant to your decision.
First, you have to look at the rental property in isolation.
1) What rent are you receiving?
2) What rent could you receive?
3) Is the property profitable?
Second, you need to look at it in the context of your total finances.
You have €225k of equity (less any CGT).
If you sold it and paid off your mortgage you would save €9,000 a year in interest.
Does the profit after tax exceed €9,000?
You have good salaries and three teenagers. Sounds like you are busy. Does the investment property take time? Your tenants today might be fine, but if you get new tenants , they might be time-consuming.
Brendan
First, you have to look at the rental property in isolation.
1) What rent are you receiving?
2) What rent could you receive?
3) Is the property profitable?
Second, you need to look at it in the context of your total finances.
You have €225k of equity (less any CGT).
If you sold it and paid off your mortgage you would save €9,000 a year in interest.
Does the profit after tax exceed €9,000?
You have good salaries and three teenagers. Sounds like you are busy. Does the investment property take time? Your tenants today might be fine, but if you get new tenants , they might be time-consuming.
Brendan