Should I sell or keep rental property

ArthurMcB

Registered User
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445
Age: 34
Spouse’s/Partner's age: 34

Annual gross income from employment or profession: €105000
Annual gross income of spouse: 55000

Monthly take-home pay €7000 approx. I max out my AVC.

Type of employment: Both private sector

In general are you:
(a) spending more than you earn, or
(b) saving?

Saving.

Rough estimate of value of home €430000
Amount outstanding on your mortgage: €250000
What interest rate are you paying? 2.25% - 3 yr fixed, 25 years left

Other borrowings – car loans/personal loans etc None

Do you pay off your full credit card balance each month? N/a

Savings and investments: €23,000 (Rainy Day Fund)

Do you have a pension scheme? Yes occupational, current value is approx. 82,000. Her fund value is about 30,000

Do you own any investment or other property? Yes. Current value 340,000, outstanding mortgage is 170,000. Rental income is 2000 pm. After interest, tax and other costs I think I net about 600pm

Ages of children: 6,5,3,1

Life insurance: Death in service and mortgage protection.

What specific question do you have or what issues are of concern to you?

Should I sell the rental and use proceeds against PPR mortgage? I think its currently a good investment for me with a good monthly net income. On the other hand I think I would net 160,000 approx if I sold it and I don’t think there would be CGT due to PPR relief which I would qualify for with this house as we lived there until recently.

I would like to be mortgage free as soon as possible which is what is driving me towards selling but given that it’s a good investment with good monthly net income I am finding it hard to decide.
 
The framework set out in this key post might help -
 
Dunno if helps but having had a rental property for ~10y and then stopped, the absence of hassle has been very welcome. The marginal tax rate on income (plus accounting) was onerous. Probably not the pounds and pence best approach and then question arises over what to do with lump sum, but I've never looked back on giving up being a landlord.
 
I hear you Raisinette and many would agree with you and have had similiar experience. Iv been lucky to date in that iv had two rental properties and never had bother. Tenants have been good and theyve proved to be good investments. As busy as i am, i actually enjoy it.
 
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