Marshian2015
Registered User
- Messages
- 5
Is he not moving to another 'county' not another 'country'?Let's look at the actual numbers
View attachment 813
I assume that as a non-resident, you will be taxed the same as in Ireland. I don't know.
The second column is where your relative gives you the money and you pay it off the expensive mortgage. This is a better measure of the profitability of the investment.
The only reason this is loss making is because you are paying a scandalously high interest rate of 4.25%. It should really be no more than 3%. But given that you are in negative equity, you probably don't have much option to switch if a new lender enters the market with fair rates.
So you need to make a few predictions to get the decision right.
Will the value of the apartment rise or fall?
Will the level of rent rise or fall?
What will be the level of hassle with tenants? For example, if you get a bad tenant, you may not get any rent at all and have to pay to get them out.
Will the interest rate rise or fall?
My gut feeling is that you are making a lot of changes to your life. You are moving to another country. You will presumably be changing job. You are moving into a new stage in your relationship. Things do go wrong. My gut feel is that these are more important considerations than the purely financial. So I think you should retain your apartment for a couple of years and see how you get on. Then sell it if everything works out o.k.
Against that, the apartment is probably looking its best now after owner occupation. It may not be in such good condition after tenants have rented it for two years.
Brendan
My "father in law" says that to ever make money on this property it will have to at least sell for the capital value I paid for it (Eur 320k) Plus interest paid?
How real an option for you would this be? Would you, with your then husband in tow, be happy to move back into your 1 bed apartment in Dublin should you find it difficult to settle outside of Dublin? Would it fit with both your working situations at that time? Would it still be suitable for your requirements at that time, i.e. starting a family, etc.?but more to do with potentially not being able to settle outside of Dublin and wanting to move back here
I'd agree with Brendan here and would regard this as a key factor. Holding on is a gamble, nobody can say what your apartment will be worth in 12/24/36 months time. You could potentially sell at some point in the future without requiring any loan from anybody, but again it's a gamble, pure and simple.If the loan is conditional on selling, then you should sell it, as that swings the deal.
The rent covers the interest expense, costs of running the place and tax.
IMO there are too many assumptions involved with projecting forward beyond a year for that level of analysis to be particularly useful.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?