Hi looking for advice, I have investment property with my brother rented out.
The house is worth €265k we have an interest only mortgage of €138k we also have about €12k sitting in a joint account not making any money.
It is currently costing us 674.74 a month and we are getting rent of 740, therefore making a profit of 65.26 a mth. (Taxes not deducted)
If we started to pay a Repayment (wording corrected by Brendan)mortgage it would cost us an extra 1502 a year, (which we could pay with our 12k), but it would pay 2704 off the mortgage. Therefore the real cost would be 1201.
I know we can claim relief on the interest paid, but would it make sense to do this??
Our would we be better off paying the 12k off the mortgage, or investing it elsewhere??
The house is worth €265k we have an interest only mortgage of €138k we also have about €12k sitting in a joint account not making any money.
It is currently costing us 674.74 a month and we are getting rent of 740, therefore making a profit of 65.26 a mth. (Taxes not deducted)
If we started to pay a Repayment (wording corrected by Brendan)mortgage it would cost us an extra 1502 a year, (which we could pay with our 12k), but it would pay 2704 off the mortgage. Therefore the real cost would be 1201.
I know we can claim relief on the interest paid, but would it make sense to do this??
Our would we be better off paying the 12k off the mortgage, or investing it elsewhere??