The equity is worth about 150K.
How about you remortgage instead ?
E.g. Lets say you can release €100k in equity.
This would cost you a further c. €5k a year in interest repayments. Along with your c. €2k you have to supplement at the moment that would be an extra c. €7k a year you would have to supplement.
SO - let say you put aside €15k of that €100k that would see you through 2 years of these extra repayments.(And maybe longer if you contimue to supplement say €100 yourself each month if you can afford it).
Does a top-up mortgage used in this manner also mean that the interest on the top-up is not claimable against income (i.e. it is not tax deductible), so while it may ease payment worries for a while, it will result in trouble further down the line (you will not get a decent yield as the after tax income will not be enough to pay the top-up mortgage). I haven't worked the figures out, but this is my gut feeling on this.And how do you avoid CGT in this scenario? I though top up morgages could only be used in such a manner if the funds are actually used to renovate the house and thus increase it's original value.
Interest on loans/topups can only be offset against rental income if the money is actually used to purchase/renovate the investment property.Does a top-up mortgage used in this manner also mean that the interest on the top-up is not claimable against income (i.e. it is not tax deductible)
Another way to look at this is that for every €170 you are putting into the property someone else is putting in substancially more and the rate of return on your capital investment is not that bad at all.
You should only sell if you need to. there is a large surplus of housing but there is not a large surplus of decent (as most renters will tell you) well furnished and maintained rental properties.
Or indeed, you could say that you are subsidizing your tenants to the tune of 170 a month.Another way to look at this is that for every €170 you are putting into the property someone else is putting in substancially more and the rate of return on your capital investment is not that bad at all.
You should only sell if you need to. there is a large surplus of housing but there is not a large surplus of decent (as most renters will tell you) well furnished and maintained rental properties.
Or indeed, you could say that you are subsidizing your tenants to the tune of 170 a month.
Are you on an interest only mortgage? If not, is the 170 more than the capital being paid off each month? If either of these statements is true (that you are paying some of the interest on the mortgage), you are leasing the house from the bank and sub-leasing at a loss to your tenants.
Another way to look at this is that for every €170 you are putting into the property someone else is putting in substancially more and the rate of return on your capital investment is not that bad at all.
You should only sell if you need to. there is a large surplus of housing but there is not a large surplus of decent (as most renters will tell you) well furnished and maintained rental properties.
My points are:And your point is ?
That therefore they should sell?