Need advice

J

jim100

Guest
We have just moved out of our house in Swords and bought another property closer to the city. Initially we were going down the road of holding on to the place in Swords (it's in a nice area) and renting it out.
Now we are not so sure - getting a bit jittery about the property market at the minute (mostly from what I read in the papers, hear on the radio and read on this site - general negative sentiment really) and finding it a bit of a hassle to get tenants (have relied on an agency up to now). We are really not sure what to do. Appreciate any advice.
 
what could do in the short term is try rent out he property, switch your mortgage to an interest only facility, reducing payments in the short term until you get the property rented out, make sure you switch your insurance as it is no longer your family home, if your our having no luck with an agency, try it yourself ,swords is near the airport try there ,always staff looking to rent, check with the revenue you can hold it for a year i think and if you can not rent it you can sell with no tax implications (capital gains) etc best of luck
 

It depends on how comfortable you are with risk. Property prices are so high relative to the rent received that it's not worth the hassle or risk of hanging on to the first property. Can you put a price on being able to sleep at night without getting jittery about the property market?
 
Good advice.

If you have a family, your mortgage if relatively large and you have few savings and/or a small pension I would sell.
If you have savings, are not stretched financially and have a pension then keeping it is a more attractive option. The chances are you will make more money by holding onto it for a year or less and then selling it (and avoiding CGT) but if things go bad you may loose some of the equity you now have. Do you take your profit or risk it for a higher return; that’s the big question and no one has a definitive answer.

Personally I would sell. You are banking on capital appreciation in the future. Put the money into your PPR and if things go well you will pay no tax on your equity if you sell. If things go bad at least your family home has a use value.
 
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