Sell or keep Rental Property?

[Always_Broke]

Hi, any help or advice appreciated..

I own a house in Wexford that I rent out. As it is in Rent Pressure Zone the rent is lower than the norm.

The question is.. do I keep the house as a pension backup or do I sell now and use the money somewhere else to invest?

House - bought in 2006 for €210k / worth about €210k now (after coming back up from neg equity)
Current Mortgage : €890 per month
Rental Income: €900 per month
Mortgage Interest Rate: 4.3% with 20 years left on the mortgage

Thanks!

 

[Flybytheseat]

Assuming your mortgage is interest only and a full write off against tax - even then you have virtually no profit so I'd sell to avoid the hassle and inherent risks of being a landlord.

 

[Bank Manager]

Sell - if SF get in to power your position will worsen as they are keen to freeze rents for a three year period...

 

[MrEarl]

Sell - there's little future for the small independent landlord, imho.

 

[Sarenco]

It’s hard to see how you are making any meaningful rental profit based on those figures and any future capital gains will be liable to CGT.

On the face of it, looks like a pretty clear sell.

What’s the outstanding balance on the mortgage on the rental?

Also, do you have a mortgage on your home and, if so, what’s that mortgage rate?

 

[Dr Strangelove]

Rental Income: €900 per month

Gross yield of 5% of a depreciating asset.

I’d sell up and get out of the game in the morning.

 

[Brendan Burgess]

Do you own your own home?

If not, there is an argument for holding onto it to keep a stake in the property market.

But otherwise, sell.

Brendan

 

[Horatio]

In your shoes I'd sell it in a flash.
Yield & headmelt & risk of being a landlord in Ireland is simply not worth it.

 

[Always_Broke]

Thanks everyone. I do separately own my own house that I live in - mortgage rate of 3%. 17 years left on mortgage.