I'm 34 years old, salary of €48k and I own my own 4 bed house in Dublin worth around €320k with no outstanding mortgage. I have two of the rooms rented out and receive a yearly income of around 9k on that under the rent a room scheme. I've done this for years now and have savings of around €30k, earning very little intrest. I'm at the stage now where I'm pretty fed up sharing with other people and want to live alone, so I'm trying to figure out what's the best way to do things. My options as I see them are as follows:
Kick my room renters out and have the place to myself. Makes the most sense, but it’s a big old house and would feel very empty and wasteful there alone. I'd much prefer a small apartment to myself.
Buy an apartment for myself for around €170k and rent the entire house out for about €2500 per month. I will pay full tax on the house rental though as i dont have a mortgage. Then when i eventually move back into the house I can rent the apartment out.
See if I can release equity in the house, thus creating mortgage (and I could then get interest relief on the mortgage when I rent it) and then use this money to buy an apartment. Is this even possible?
Rent the house out and use the after tax money to rent an apartment.
Is there anything else I should consider? I know I'm in a great position but I'm just weighing up my options at the moment. Would appreciate opinions. I don’t really want to sell the house as if I eventually settle down it would be a nice house to raise kids in.
Kick my room renters out and have the place to myself. Makes the most sense, but it’s a big old house and would feel very empty and wasteful there alone. I'd much prefer a small apartment to myself.
Buy an apartment for myself for around €170k and rent the entire house out for about €2500 per month. I will pay full tax on the house rental though as i dont have a mortgage. Then when i eventually move back into the house I can rent the apartment out.
See if I can release equity in the house, thus creating mortgage (and I could then get interest relief on the mortgage when I rent it) and then use this money to buy an apartment. Is this even possible?
Rent the house out and use the after tax money to rent an apartment.
Is there anything else I should consider? I know I'm in a great position but I'm just weighing up my options at the moment. Would appreciate opinions. I don’t really want to sell the house as if I eventually settle down it would be a nice house to raise kids in.