# Sell investment properties and take the hit?



## Libra (21 Apr 2014)

I'm 42 and my wife is 32. 

I earn €4,500 net a month. My wife will be earning €2,000 net a month from June onwards which she can do while minding the baby (expecting our first this autumn) (the baby may need a babysitter the odd day, depending on her meetings etc) 

I have two properties currently rented out. I pay €3,700 a month on these two mortgages and I get €2,300 in rental income. Theres around €200,000 negative equity between these two properties. They're both standard variable. We live in my wife's two bed apartment at present. This is in negative equity but has a great tracker mortgage which repayments are just under €1,300 a month. Similar properties are renting for €1,600 a month in this part of town. We have €25,000 short term debt between us. 

The thing is I hate being a landlord and I'd love to rid myself of one or both "investment" properties and be in a position to buy a family how for us. We can stay in my wife's apartment for another few years I guess. Should I sell these properties and crystallise the loss now or keep paying off the debt and sell in another few years when prices have recovered? (Both properties are in good locations in Dublin where prices are rising. However we don't want to live in either property). There's a long term tenant in one of the properties (family members) and they're great tenants. I'd prefer to leave them be but if it meant securing my families future I'd sell. However, my wife is concerned about taking on €200,000 negative equity and wants to see if we can reduce this amount somewhat by holding on a but longer. What do you think?


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## Brendan Burgess (21 Apr 2014)

I have covered how to approach such questions in the following Key Post: 

http://www.askaboutmoney.com/showthread.php?t=176234



> I pay €3,700 a month on these two mortgages and I get €2,300 in rental income.



I assume that the €3,700 monthly payments include capital? If so, then these might be profitable investments. 

But you cannot be provided with a comprehensive answer unless you complete the following: 

Standard Format for mortgage arrears and negative equity case studies


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## Libra (21 Apr 2014)

Sorry Brendan I'll fill that template out tomorrow. 

Yes, the €3,700 is capital and interest. The €1,300 on my wife's apartment is also capital plus interest.


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