Hi,
I have a couple of questions so bear with me please...
Myself and friend bought an apt about 8yrs ago, mortgage remaining is about €255k, value who knows maybe €200... We have a tracker and mortgage is about €1200/mth but Management fee is about 250/mth.
Presently she lives there and a room is rented out. I live elsewhere with partner and 2 kids. We are both finding the mortgage a struggle. I have to pay new mortgage and chilcare plus kick in €300/mth to the apt.
It now looks like she may move to the UK after xmas. In that case we would rent the entire thing out. I have done my homework on what we would have to pay tax etc...and it looks like we'd both have to kick in €300/mth. This would go on forever it appears. And I wonder if we got a point where we could seel it for what the mortgage was should we get rid of it. Previously I had been saying we should hang onto it and eventually it would pay us back....now I'm not sure.
If we have to rent it out and pay €600/mth into it, we are very worried about it not being rented for a couple of mths as we really could not pay the mortgage then. So we're thinking af asking if we could go interest only for 1yr, this would allow us to build up a few thousand to act as a buffer. We are both working and do not plan on letting this go (we both put €50k in at the start so don't want to lose that or credit rating).
Mortgage is with PTSB, are they open to giving interest only for a yr so that we can work through this without totally crippling ourselves?
Also given the figures above, shoudl we sell it in a few yrs if possible, when mortgage would get paid off, or hold onto it again if possible, and presume that in 20yrs time it would be a nice nest egg?