keep or sell

K

kmepll

Registered User
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I'm a self employed Driver and need some advice.I bought a new house outside Dublin as a primary residence and rented out the Dublin house .The main reason being some sort of income for my family if i was to die ,very morbid i know .The last time i was up checking on the tenents another house on the road was up for sale and was fetching 375000 euro.Showed this to the better half and we are now very tempted to sell up and reduce the mortgage we have on the new house ,but as i said the morbid side of me is saying keep it.
If i sell i will have to pay CGT,but should still come out with about 250000 .This would reduce the other mortgage to 50000 and have lower repayments and more wages to save
But if i get hit by a bus the day after we sold then she has no income and one house comprared to two houses and an income out of one of them.
Any insights would be greatly appreciated..:D
:)
 
surely if you die you have a policy that will clear the existing morgtage.this would then leave the other half with either no loan to pay or if you sell the other house,a lump sum of 250k from the sale.
if it's not a hassle and the tenants are good i would keep in the house in Dublin..
 
Sell up if you think prices cant go much higher, clear/dramatically reduce your mortgage on PPR, take out an insurance policy with the money you save on mortgage repayments if potential death really bothers you. Start investing in low-medium risk diversified assets with money you'll be saving on your mortgage repayments,your family will be guaranteed to have a home and lump sum/income if the unlikely happens. if you decide to keep property get life insurance anyway.do you not pay into a pension?
 
What kind of yield (return on your investment) are you getting on the Dublin house? Would you do better by sticking your money on deposit?

If you main concern is income when you die, I'd suggest life insurance. It does exactly what it says on the tin.
 
You say you will suffer CGT which is correct, however not at the full 20% of the house in question was your PPR for a period of time e.g. if you had the house for 20 years and 15 of which it was your PPR, then 15/20 of the gain is tax free, this is a rough explanation
 
Thanks for all the advice.going to keep the property ,just needed a few impartial opinions to help us decide
 
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