the bank not only gave it to us . they recommended it ... We were very unsure about keeping the original house as an investment , but he reassured us that we would be fine and explained that there would be no problem renting it out for the value of the mortgage.
the bank not only gave it to us . they recommended it ... We were very unsure about keeping the original house as an investment , but he reassured us that we would be fine and explained that there would be no problem renting it out for the value of the mortgage.
From what you say though you are down €200 a month on an interest-only mortgage (before considering any other expenses) so that doesn't cast your banks advice in a very good light.
it is in Navan , close to the town but still in a very quiet area . Considering the M3 opening , the new hospital being opened , and Quinn direct basing its european headquarters in Navan , we thought we would have no problem getting rental , but this will meaning hanging on with the house for at least another year .What area is the investment property in? Are properties there selling & renting at the asking price? If prices drop much further will you be in negative equity? How would you cope with any vacant periods?
I think this might be the answer , but take a look over my responses above before commiting to this , at the end of the day , you have to take a risk to get a return , but if this is too much of a risk i think we are ready to cut it loose .IMHO, there are too many uncertainties involved with an investment property that is losing money both from an income & capital point of view. As the other posters say, with a young family you should give serious consideration to selling up.
She gets paid for the full year .Also assuming your wife gets paid maternity from her job for 26 weeks thats 26 weeks of the year on one income so even this year could be a struggle
Age: 31
Spouse’s/Partner's age: 31
Rough estimate of value of home Our House - 400k , Investment 350K
== €750k
Amount outstanding on your mortgage: 400K , Investment 294k 5.99 % , 60k@ 5.85 ( this was used a remortgage used to pay the deposit on our new house )
== €754k
Car Loan for 15K from a parent , no interest.
Personal Loan with Cormarket 7.9% 5k over 3 years.
== €20k
I agree , keep in mind that the house is no where near negative equity , it has 290k left on it and it is worth 350k ( it is a 4 bed fully detached house )
Income = ~ 90+k
I can't work this out. To me you are in negative equity.
Total property value 750k, borrowings attached to properties 754k and that's before other borrowings.
Am I wrong here?
IMO you are in deep trouble.
If at all possible, sell the investment property asap.
You seem a bit blasé about the whole thing. Am I reading something wrong?
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