Would we be mad to change house?

M

monte

Registered User
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33
Hi,
Sorry for mad title but I need some clear thinking on this one.
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Thanks :)
 
The price you paid for your house is irrelevant. What you can sell it for today is the only thing which is important.

It will be difficult for you to get a mortgage. However, if you sell your investment for €170,000 and if you get €300,000 for your home, you would need to borrow only €130,000. This could be done.

But you must sell both properties first. You would be crazy to keep your home and buy another property for €300k. It is too high an exposure to the property market.

If you really want the other house, get your two houses on the market immediately.

Brendan
 
Thanks Brendan, we should get approx €290,000 for ours based on neighbours house that sold recently.
 
i would wait a while until your husband's business is fully up and running and you have a better idea of his likely annual income.

sounds to me like you don't need to move but that you would like to, wait and build up some more savings.
 
Did you consider renting your home and selling the other property and buying that way. You pay full tax on the rent currently which you would not on your home.

What rent would you get on the home? Would you lose the tracker if it was an investment property. What is the mortgage payment and what would it be if it changed to investment rates.

Though you need to factor the election and what the Labour party thinks of landlords into your thinking.
 
Bronte said:
Did you consider renting your home and selling the other property and buying that way. You pay full tax on the rent currently which you would not on your home.

What rent would you get on the home? Would you lose the tracker if it was an investment property. What is the mortgage payment and what would it be if it changed to investment rates.

Though you need to factor the election and what the Labour party thinks of landlords into your thinking.
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That's a fairly stupid comment to make given we don't know the make-up of the next Government yet and more importantly the content of the programme for Government.
 
I don't think it's stupid at all.

The Labour Party policy is to do away with tax relief on interest paid on rented property.

If this becomes government policy, then it will make even less sense for people to keep their old home after trading up.

Brendan
 
See here for related discussion.

westside said:
Taken directly from Labour Manifesto.

1. As an interim measure, Labour will increase the second homes levy by €300 to yield €95 million. (Current rate is €200 so it will rise to €500)
2. phasing down of the amount of interest that can be offset against rental income for tax purposes to 25%. (Currently 75% is allowable)
3. In respect of Capital Gains Tax and Capital Acquisitions Tax, the first €50,000 over the threshold will be taxed at 30% and the balance at 35%.
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