D
dilemma
Guest
Hi, I’m wondering whether anyone can give me advice on the following. Scenario is:
A. Keep this current house and rent it - rental yield approx €1,100 net of estate agency fees (not net of CGT) or
B. Sell this but only 9 months after second house is bought to profit on increase in value (I believe I don’t pay CGT on the sale if I don’t rent it and if I sell within a year, i.e. a year’s leeway for CGT??)
Option 1 probably means releasing equity from current house for new house and main question on that is: will they put a clause in to say I can’t sell it for a certain amount of time or am I free to sell the first property approx 9 months later??
With Option 2, can I get a regular mortgage rather than Buy To Let as I see from September 05 that the rate is usually 3.1% - much lower than Buy to Let… (according to Sept 04 rates on this forum)?
Reason for considering moving: very noisy rental neighbours on one attached side of semi-d plus noisy traffic as I live on very busy main road. Rather than move and spend 20k on stamp duty, I could invest in triple glazing and soundproofing – if it worked this house would be near-perfect, but does it?? If anyone has any advice on this bit which might save me the 20k and the stress of moving I’d be very grateful!
The quote I have from my current mortgage provider, Permanent TSB, is 3.4% over 30-35 years – tracker or 2.55% for 1-year fixed. I asked for 200k which was no problem, but got the distinct impression I could get more if I asked (I didn’t ask for anymore than that, but may realistically be looking for up to €350k if possible). I think the current offer is on a buy-to-let basis, based on the fact that I would be letting the first property out, but what if I want to pursue option 2 without renting, just capitalising on increased value? The idea is to buy pre-SSIA and capitalise on anticipated increase in value by selling post-SSIA.
I would be interested in your recommendations on the following:
1. Which option recommended – A or B above? Or soundproofing/ triple-glazing??
2. What would the maximum I can borrow usually be?
3. Over what term?
4. What is the best rate I could expect?
I would ideally like to keep my business with Permanent TSB as there have been no problems, but would switch both mortgages over to another provider and possibly current account also for a better rate.
My earnings up to July 05 were 51k gross, I’m now earning 31k gross as I’ve reduced my hours to do my Masters and whereas I was permanent before I’m now on contract with 2 contracts guaranteed until the end of the academic year. Again this was no problem for Permanent TSB based on existing equity, savings and previous and potential earnings.
Sorry for the lengthy explanation, but that’s the full picture if anyone has any advice I’d be very grateful!
- Bought current house for IEP£95k (approx. €115k) in Oct 99. Mortgage with Permanent TSB.
- €91,120 left on mortgage, and house now worth min. €317.5k so equity = €226,380 (however advised today - 2 weeks after first valuations current house worth more like €330k)
- I have a deposit of €55k with €20k more due to come through mid-2006 from SSIA.
- Considering buying another house which may be equal value to current house or up to max of €450k purchase price and either:
A. Keep this current house and rent it - rental yield approx €1,100 net of estate agency fees (not net of CGT) or
B. Sell this but only 9 months after second house is bought to profit on increase in value (I believe I don’t pay CGT on the sale if I don’t rent it and if I sell within a year, i.e. a year’s leeway for CGT??)
Option 1 probably means releasing equity from current house for new house and main question on that is: will they put a clause in to say I can’t sell it for a certain amount of time or am I free to sell the first property approx 9 months later??
With Option 2, can I get a regular mortgage rather than Buy To Let as I see from September 05 that the rate is usually 3.1% - much lower than Buy to Let… (according to Sept 04 rates on this forum)?
Reason for considering moving: very noisy rental neighbours on one attached side of semi-d plus noisy traffic as I live on very busy main road. Rather than move and spend 20k on stamp duty, I could invest in triple glazing and soundproofing – if it worked this house would be near-perfect, but does it?? If anyone has any advice on this bit which might save me the 20k and the stress of moving I’d be very grateful!
The quote I have from my current mortgage provider, Permanent TSB, is 3.4% over 30-35 years – tracker or 2.55% for 1-year fixed. I asked for 200k which was no problem, but got the distinct impression I could get more if I asked (I didn’t ask for anymore than that, but may realistically be looking for up to €350k if possible). I think the current offer is on a buy-to-let basis, based on the fact that I would be letting the first property out, but what if I want to pursue option 2 without renting, just capitalising on increased value? The idea is to buy pre-SSIA and capitalise on anticipated increase in value by selling post-SSIA.
I would be interested in your recommendations on the following:
1. Which option recommended – A or B above? Or soundproofing/ triple-glazing??
2. What would the maximum I can borrow usually be?
3. Over what term?
4. What is the best rate I could expect?
I would ideally like to keep my business with Permanent TSB as there have been no problems, but would switch both mortgages over to another provider and possibly current account also for a better rate.
My earnings up to July 05 were 51k gross, I’m now earning 31k gross as I’ve reduced my hours to do my Masters and whereas I was permanent before I’m now on contract with 2 contracts guaranteed until the end of the academic year. Again this was no problem for Permanent TSB based on existing equity, savings and previous and potential earnings.
Sorry for the lengthy explanation, but that’s the full picture if anyone has any advice I’d be very grateful!