NI Investment property, given value of EuroVsGBP is this a good time to pay down mort

[Alan Robert]

I have a Northern Ireland investment property. Given the value of euro would it be a good time to pay off some of this mortgage?

Given I have rates and management fees to cover not likely to create tax liability on rent payments.

Also, if I sold the property would it be a good time to pay a capital gain while leaving the balance in sterling until sterling appreciated over time hopefully.

Any other things I should be considering?

 

[jwf]

Re: NI Investment property, given value of EuroVsGBP is this a good time to pay down

Hi
Paying the mortgage down would seem to make good sense on 2 counts :
Excellent Exchange Rate (for you ) and grim Deposit rates. (I assume you have done the tax relief calculation.)

Noticed the board outside NI post office this morning £1 = 1.05 euro.
Not a bit of wonder we have seen a 30pc increase in trade from the South to Newry at the minute!

I certainly would not be trying to sell in NI at the minute. But conversely, there are still some scary headlines about further potential falls.
jwf

 

[Lollix]

Re: NI Investment property, given value of EuroVsGBP is this a good time to pay down

I'd wait a litle longer, maybe into January and see how exchange rates are looking then. Climate for paying off sterling mortgages seems to be in our favour right now though, and looks set to stay that way for a little while more.

 

[limerick40]

Re: NI Investment property, given value of EuroVsGBP is this a good time to pay down

I am currenlty trying to release euros to pay down a mortgage in the UK as I see the next few months are predicted to be bleak for sterling as the UK heads towards a 0% intertest rate. However some banks are predicting that sterling could bounce back in value by as much as 15% towards the end of the year but this is just a prediction so it looks as if the first half of 2009 is the time to reduce the sterling mortgages with euros.

 

[Alan Robert]

Re: NI Investment property, given value of EuroVsGBP is this a good time to pay down

Another thing I'm considering is whether or not there will be another budget in 2009. At the minute the minister is saying no, but you never you know, and if there is I think capital gains could be increased to 40%.

Might make sense to sell now, if possible?, pay capital gains and keep remaining profit in sterling until rate improves.