Which Property to Sell??

C

classychick

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We just put a deposit down on a new build in Co.Dublin (to be nearer to family & work)

At present we own two other properties -

1. current house in Co.Meath 4 bed semi - mortgage outstanding 120K - Rental income 850e - monthly mortgage 820e - Selling price 270K

2. 3 bed Semi Rosslare Strand, Wexford - No outstanding Mortgage - Rental 500e (but at present only used as summer house for family & friends) Selling price - 189K

We would really like to sell one of the properties to pay a lump sum off new build in order to reduce repayments (hoping to start family and go part time - fingers crossed)

But which property in your opinion would be more benifical in the long term to keep for our future?
 
Put both properties on the market.
See what interest you get in either property at your asking prices.
The offers you get (if any) will determine which property you sell.
 
I would sell the one in MEath if you can. You should all going well walk away with the guts of 150 K minus solicitors fees etc. the rent is not covering all the costs so it is causing a short fall and if interest rates go up you will have to add more.
The house in wexford you have nothing owing thus it is costing you little and it is great to have for a holiday home especially if you are thinking of starting a family. Somewhere to go for a cheap holiday in the early years or for every other year.
How much is the new house and how much do you have to borrow. What size repayments would you be talking on paying?
 
It's a buyers market now, getting a sale may be difficult, I agree with Peter.
 
New House is 440K - Mortgage of 280K (we've been saving every penny) repayments of 1200 a month
 
One thing to bear in mind if you are planning on renting out either property is the tax implications of rental. If you have a mortgage on a property and rent it out you can offset 75% of the interest portion for tax purposes. If you decided to rent out the Rosslare home you will be liable for tax on all the rental income, however if you rent out the Meath home and keep the existing mortgage you can claim some relief on the interest portion of the mortgage.
As you own the Rosslare home outright and if you try and mortgage this property the revenue will deem that the 'puropse of the loan' was not directly for this Rosslare home but to fund your new home and will not allow it.
The Revenue are quite strict on this matter as a close family member has been in this situation.
So in your scenraio below you should consider the tax implications for the rental on both properties as they are not the same.
 
i would sell both and reduce my main mortgage to the minmum, if you get what you arel ooking for you will have no mortgage, think of what you can do with 1200 extra every month
 
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