After the mortgage is paid I have an income from the rent of around €450 per month.
Actually no sorry, that’s before the income tax. So 450 before tax..Do you mean that after income tax on the full rental amount, you clear the mortgage payment plus €450?
Purchased for 135 and 114 left outstanding, 19yrs left on mortgage I just rang to find out exactly how long i had left. Would definitely fetch 170 if not 175. Thanks.You may be liable to CGT if you make a gain on the sale?
Would you make a gain if you sold the house?
It would sell for 170k. Purchase cost?
Actually no sorry, that’s before the income tax. So 450 before tax.
Purchased for 135 and 114 left outstanding, 19yrs left on mortgage I just rang to find out exactly how long i had left. Would definitely fetch 170 if not 175. Thanks.
Yes I’ve been paying tax obviously, the whole time.I do hope you've been paying tax, etc, on the income from the house over the past 7 years it has been rented. If not, you're in for a nasty surprise that will answer the question for you pretty quickly on if you should sell or not.
Yes I’ve been paying tax obviously, the whole time.
Probably yes, but they’re fanatastic tenants who keep the place really well, and I had the previous tenants trash the place so am keen to keep themThe rent should be much higher than a grand per month?
Thanks I will have a look at that nowRent @ €1k per month equates to a gross yield of 7% @ a fair market value of €170k. Seems reasonable to me.
The approach set out in this "key post" might help -
https://www.askaboutmoney.com/threads/keep-apartment-as-rental-or-move-tracker.203907/
That’s place of primary residence is it?.. how would I work that out ie where would I look to find out re time spent in house and how that affects CGT please? I take it you mean it depends how much time you spent living there affects your overall CGT when you sell yes?..Mortgage is not relevant when calculating gain on sale.
Bought for 135k
Might sell for 170-175k.
So, yes, you will make a gain on the sale, less purchase and selling costs.
Yes, there may be CGT payable, although CGT reduced by time spent as PPR.
That’s place of primary residence is it?.. how would I work that out ie where would I look to find out re time spent in house and how that affects CGT please? I take it you mean it depends how much time you spent living there affects your overall CGT when you sell yes?..
Till they decide to move out at least and then re-evaluate.Cheap tracker and excellent tenants. Keep the house.
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