To sell apartment or not

I have been an avid reader of this forum for the last 5 years but have never posted but I now seriously need some help/ advice please.

Brief overview


Married couple
Income one:30k pa
Income two:41k


One child, 2nd on the way very soon , so full time child care for two imminent expense (1500 per month where I live)


Just ought a house, renovated same


Mortgage 212k
Loans 28k
Savings 8k


All savings and more! Gone in to renovation Of old house


And here's my query!


I bought an affordable apartment myself in 2005 , at discounted Price I Paid 140k, realistically now, through speaking with local agents etc I could achieve 70k(, my outstanding mortgage is 105k over a further 18 years, I could expect to get between 650-700 pm rent, my mortgage is 700pm


Logistically it is far from where we both work/live


I would love to sell and arrange long term loan for balance


I have generally queried this and was advised s no go


My question is, after prtb /taxes/overheads etc paid, long term, is it worth the hassle and expense of keeping this as a long term Investment do ye think?( hoping I could negotiate with them to allow me to sell) we have already paid 2 months of double mortgage and no money to do so next month as I starting unpaid mayernity ((... And still trying to get finalised with it but difficult as both in work all week and only able to get over there at weekends

My question is, after prtb /taxes/overheads etc paid, long term, is it worth the hassle and expense of keeping this as a long term Investment do ye think?( hoping I could negotiate with them to allow me to sell) we have already paid 2 months of double mortgage and no money to do so next month as I starting unpaid mayernity And still trying to get finalised with it but difficult as both in work all week and only able to get over there at weekends

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So selling now would cost you say 35k (105 - 70). Keeping it will cost you about say 3k to 4k a year i.e. rent - minus costs including any tax liability. To pay off the 35k it would take you 10 years at 3k to 4k p.a.
So roll on 10 years. You will have paid back the 35k and have no apartment and no headaches along the way. If you keep the apartment your outstanding loan will be about 50k to 55k. So the call is do you see the apartment being worth more than that in 10 years ? If it's less then you lose out, if it's more then you gain that. I'm not trying to advise either way, you need to balance off whether it's worth the hassle and take a chance that rents will be good and tenants are OK and paying against cutting your losses now with no hassle but taking the hit.

Am slightly surprised that the rent could be 7.800-8.500p.a. on an apt worth ca. 70k.
Normally I'd say this is worth keeping.

Elcato's figures are pretty good. After all costs you'd be paying about 3/400 a month towards the mortgage, IF you have good tenants who always pay and IF interests rates don't rise in a few years (though the outstanding amount is small so this is not a major problem).
Compare that with the monthly cost of paying off the loan in say ten years.

You may be lucky and get more rent than 7.500 -and if the apt is pleasant enough ina reasonable location with potential demand ,then don't look it as a capital investment but as a long-term income source.

Anyway, how could you get a cash loan of ca. 40.000 when you don't appear to have any security at all ?

Thanks got the replys), so would appear I would be better off keeping it and see how rental goes? As realistically over a 10 period I would be paying out the same anyway ( paying off neg eq versus all costs associated with keeping it) , however, I would end up with no department versus a property which may/ may not increase from today 's value ...... What would people do if in my shoes? ... I know if course there is also the very valid point that it would probably be impossible to actually get s loan to cover the negative equity(... I suppose I was just grasping at straws, as I have just had an unbelievaBly stressful year and about to become a mother to two kids and two full toE jobs etc Nd I would just live to cut my ties and fo away with tat stress!... Ido of course realise hat many are in a similar position/ worse position

Sorry for all spelling errors!!!trying to kill two birds here( as usual) typing on mobile whilst waiting on doctor appointment during lunch break!!!

"Loans to cover negative equity".
Currently you appear to have the broad capacity to meet the mortgage repayments from gross RI. The Bank would be unlikely to agree to let you sell unless, you could raise sufficient funds to meet the residual balance. You may need to re-think your strategy if interest rates raise (not an imminent threat) or if the tenant leaves and you have difficulties in finding a replacement at this rental level.

Go to a reputable letting agency . Make sure that they manage the property as well.

This is different from the management company that may be running the building containing your apartment. You need a letting-managment company that the tenants will contact in case of problems, that will address those problems and that only contact you in case of a big emergency.

I rarely use them because I look after my few properties locally myself.
But I have a couple that are far away.
I made it clear to each of these companies that i don't want to be bothered for any replacement,repair that can be easily fixed cheaply .(e.g. no bother me if the microwave/toaster is broken -get a new cheap one and take it off the rent. )

If the letting-mngt company is any good you should rarely be bothered. So, no stress.

Check them out now . Better still, get your non-pregnant spouse to do it.

p.s. If you ever do want to sell you'll find it easier if you have good tenants that pay a decent rent. Investors are buying apts more than regular buyers. At least that's what both my letting agents, who are also auctioneers, tell me.

Am slightly surprised that the rent could be 7.800-8.500p.a. on an apt worth ca. 70k.
Normally I'd say this is worth keeping.

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Most apartements in the Dublin 1, 7 or 8 area (one beds) are about 70 to 80k to buy and rents are generally 600pm to 700pm. Of course, the OP may be elsewhere.