I know there have been threads on similar topics but just wanted to put my situation in writing.
Currently in the middle of a self build with gf. However I own an existing 3 bed semi house myself that we currently live in.
Value circa €200k, bought for €242k, tracker mortgage (+0.95%) balance currently €159k. So its worth less than I paid for it (plus around €20k gone into the house) but with some luck I may come out of a sale with say €30K.
Been racking my brains lately as whether to sell or rent out existing property, in no particular order of importance I have listed pro's and con's for keeping the house.
Pro's for keeping
1. Wait for value to increase to seek to eventually breakeven.
2. Mortgage payments are reasonably low so rent (approx €750/€800 pm) will cover mortgage and leave a little extra as income.
Con's for keeping
1. Hassle and cost of renting out house (first time landlord) - difficulty finding suitable tenants although renting market should be good with most people unable to get a mortgage / damage to house / non payment of rent etc etc
2. Possible loss of Tracker Mortgage.
3. Cost of landlord insurance, registering with PTRB etc
4. Property Tax & potential increases.
5. Capital Gains Tax and potential increase in future.
6. Further falls in property value
7. I couldn't use anything received from sale after mortgage paid off to reduce mortgage on new build.
8. New build has a variable mortgage so interest rate increases will mean if I am paying both mortgages at same time for a period of time it would make things very tight each month.
9. Having total mortgage debt of around €460,000 - probably not comfortable with this unless I was reasonably confident property values would eventually increase again (total shot in the dark)
10. Concentrate on mortgage of new house as will hopefully be 'home' for long time to come
Can anyone think of any other criteria to add to the lists above and help me decide?
Currently I am veering towards selling, take whatever money I can from it and put towards the new house. If not possible to sell then renting may be only option.
Thank you in advance for all comments/advice.
Currently in the middle of a self build with gf. However I own an existing 3 bed semi house myself that we currently live in.
Value circa €200k, bought for €242k, tracker mortgage (+0.95%) balance currently €159k. So its worth less than I paid for it (plus around €20k gone into the house) but with some luck I may come out of a sale with say €30K.
Been racking my brains lately as whether to sell or rent out existing property, in no particular order of importance I have listed pro's and con's for keeping the house.
Pro's for keeping
1. Wait for value to increase to seek to eventually breakeven.
2. Mortgage payments are reasonably low so rent (approx €750/€800 pm) will cover mortgage and leave a little extra as income.
Con's for keeping
1. Hassle and cost of renting out house (first time landlord) - difficulty finding suitable tenants although renting market should be good with most people unable to get a mortgage / damage to house / non payment of rent etc etc
2. Possible loss of Tracker Mortgage.
3. Cost of landlord insurance, registering with PTRB etc
4. Property Tax & potential increases.
5. Capital Gains Tax and potential increase in future.
6. Further falls in property value
7. I couldn't use anything received from sale after mortgage paid off to reduce mortgage on new build.
8. New build has a variable mortgage so interest rate increases will mean if I am paying both mortgages at same time for a period of time it would make things very tight each month.
9. Having total mortgage debt of around €460,000 - probably not comfortable with this unless I was reasonably confident property values would eventually increase again (total shot in the dark)
10. Concentrate on mortgage of new house as will hopefully be 'home' for long time to come
Can anyone think of any other criteria to add to the lists above and help me decide?
Currently I am veering towards selling, take whatever money I can from it and put towards the new house. If not possible to sell then renting may be only option.
Thank you in advance for all comments/advice.