Sorry another rent or sell question

S

Superstitious

Registered User
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Hi, Some advise needed please. Due to the climate at the moment,I have looked into selling my two bed duplex but I'm in two minds. A property exact to mine has gone sale agreed for 228,000.
Original price: 245000
Bank: BOSI now pepper
Mortgage:860
Balance: 180,000
Interest rate: 1.5%
Years remaining: 20
Rent : 1040 got caught with rent zone 4%
Other expense: 500 approx
Tax is going to be around 3k
I'm edging on the side of selling as we bought a family home last year and a few quid would be welcomed but I would like people's opinion please.
 
You have a mortgage of €180k @ 1.5% interest, means that you are paying less than €3,000 a year in interest.

You are getting €12,000 a year in rent.

So if you keep it you are making a profit of around €9,000 before expenses and taxes. (The rest of the €860 per month is reducing the balance on your mortgage, so it's a form of saving.) Or about €4,500 after expenses and taxes.

If you sell it, you will have around €50k cash.

YOu can pay this off your home loan and save around €1,500 a year in interest - assuming an interest rate of 3%.

So I think you should hold onto it.

There is a small kicker in that Pepper might offer you a deal to pay it off early. Why not ask them?

Brendan
 
Hi, I rang pepper to see if there I could get a deal if I sell my property. The representative said she will get back to me, I'm doubtful as they still haven't sent me a mortgage statement this year yet. Seems alot of confusion going on in pepper.
If I do sell my property is there any tax implication for me or does that kick in after price goes over the 245,000 I've paid for it.
Thanks
 
If it has always been an investment, then the difference between the sale price and the purchase price will be a chargeable gain or allowable loss. The gain will be taxed at 33%. If it's a loss you can set it against capital gains on other assets e.g. directly owned shares.

If it was your family home for a part of the time, the gain will be reduced proportionately. In simple terms, if the gain is €30k and you lived in it for 1/3rd of the time, only €20k would be a capital gain.

Brendan
 
Superstitious said:
If I do sell my property is there any tax implication for me or does that kick in after price goes over the 245,000 I've paid for it.
Click to expand...
No CGT to worry about unless the sales price exceeds the original purchase price.

It's another reason to hold on to the investment for the time being.
 
Thanks for that. It was my primary residence from 2006 till 2015.
Your advise has prompted me to keep in the short term anyway ( 2 years).
 
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