So in effect you'd have to subsidise the mortgage payment after tax, right?I'd like to keep my current PPR and use it as a rental property. It's in sought after area and the rent would be around 1.75 times the mortgage payment at the moment, obviously if the ECB rate goes up it becomes less lucrative.
So in effect you'd have to subsidise the mortgage payment after tax, right?
That's a 5% gross yield, maybe net yield a little over 2% after expenses and tax.I probably explained that poorly, mortgage is €950 at the moment and I would expect rental income to be around €1600 looking at similar properties in the area.
That's a 5% gross yield, maybe net yield a little over 2% after expenses and tax.
I'd be with you on that one yeah, I don't particularly want to be a landlord either but just not possible to sell it in the short to medium term as I said.
Dare I ask sector of employment? Well done on a great income, and you must be one of the youngest with a tracker mortgage too.
I have been discussing the same thing with lenders, but seeking maximum amounts on another mortgage, while retaining current property. You won’t have any issue, particularly given your clear ability to save your income. I started a thread, the main theme of the responses were to consider reasons for holding current property as the tax on rental income makes the economics highly questionable, certainly in the short term. I too have reasons for wishing to hold current place.
I guess this has something to do with a parent being on the mortgage. I don't know much about the legalities but I've seen people get good advice on how to sort this out on AAM, so if you ask...
Otherwise I think it's a miserable net return for the risk involved. Being a landlord (even with an agent) involves work when you least want it in my experience.
Any experience appreciated.
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