Hi guys.
Looking for some advice
I have 2 properties which are not performing so well as both stuck with low rent compared to market rate ( rental
Pressure zones)and I’m considering selling one. Which would you advise?
Property 1
Location- citywest
Value 375000
Mortgage 0
Rental income 1500
Market rate 2500
Selling will result in 75k CGT
Property 2
Location - midlands
Value 200000
Mortgage 150000 5% int only 625 pcm
Rental income 840
Market rate 1400
CGT 0 or close to
Personal circumstances
Currently live in UK where I’m tax resident - any interest I pay on a mortgage I get a 20% tax credit for so not as generous as here
I’ve a small house in dublin that I spend weekends in- mortgage free.
I’ve a flat in London worth £750000- mortgage £350000-
Mortgage rate 5.5%
I’ve 2 other investment properties - one in London and one in dublin- both performing ok. Mortgage free Irish one and LTV London one is 65% on a fixed rate 1.7% till 2025
I’m 53
Income £125000
Have a small Pension 150k
So property 1 will never have a market rate
After CGT I could get almost as much in a savings account here in Uk (6% available )
Or pension- 100k of pension will
Cost me 60k
Property 2 - after tax is costing me
a small amount monthly but no CGT on selling.
Im normally good at this but I’m having difficulty if there is an obvious choice . Maybe there isn’t…
Thanks I’m advance
NBC
Looking for some advice
I have 2 properties which are not performing so well as both stuck with low rent compared to market rate ( rental
Pressure zones)and I’m considering selling one. Which would you advise?
Property 1
Location- citywest
Value 375000
Mortgage 0
Rental income 1500
Market rate 2500
Selling will result in 75k CGT
Property 2
Location - midlands
Value 200000
Mortgage 150000 5% int only 625 pcm
Rental income 840
Market rate 1400
CGT 0 or close to
Personal circumstances
Currently live in UK where I’m tax resident - any interest I pay on a mortgage I get a 20% tax credit for so not as generous as here
I’ve a small house in dublin that I spend weekends in- mortgage free.
I’ve a flat in London worth £750000- mortgage £350000-
Mortgage rate 5.5%
I’ve 2 other investment properties - one in London and one in dublin- both performing ok. Mortgage free Irish one and LTV London one is 65% on a fixed rate 1.7% till 2025
I’m 53
Income £125000
Have a small Pension 150k
So property 1 will never have a market rate
After CGT I could get almost as much in a savings account here in Uk (6% available )
Or pension- 100k of pension will
Cost me 60k
Property 2 - after tax is costing me
a small amount monthly but no CGT on selling.
Im normally good at this but I’m having difficulty if there is an obvious choice . Maybe there isn’t…
Thanks I’m advance
NBC