Advice on renting versus selling property

robkin82

I own a 3 bed property that I have been living in for the past 8 years. I am getting married this summer and have just gone sale agreed on another property that I am buying together with my fiancee (so my second house and her first).

My dilema is this - should I sell the 3 bed if I can manage to clear the outstanding mortgage of around €167k or would I be better off renting it out and hoping property prices recover to the extent that I would make some profit on the house in the future? Bought the house 8 years ago for €245k and mortgage is around €1k per month. Rental value would be around €900 per month so would be paying an extra €100 per month towards the mortgage, along with Rental Income tax, PRTB, Second property tax, maintenance costs etc.

If the 3 bed house was no longer my private principal residence I presume I would be on the hook for capital gains tax also? Or would this be the case if I sold below what I paid for it 8 year ago? Any advice appreciated!

ted1

Where's the house ? The Dublin market is pretty buoyant. Being a landlord is a lot if hassle and you'll be paying tax on your income so that 100 euro shortfall you'll be making up will be closer to 300-400.

Also if your not on a fixed or tracker it'll be a bigger difference once interest goes up

My advise is to sell it and live without the stress if being a landlord

There's no capital gains on a private residence. In a rental property it's only payable on the difference between purchase and sale price

robkin82

The house is in Kildare and it's a variable rate mortgage so good point you make about rates possibly going up at some stage in the future. I understand that there's no CGT if you sell your private residence but I'm not so clear on the situation once we move into the new house as I presume the new house will become our joint principal private residence and then the house in Kildare will be default become an investment property and therefore subject to tax if we sell. We'd hopefully be able to sell to cover the outstanding mortgage and any solicitors fees, wouldn't be confident of getting a higher price than that (if at all).

Borderfox

If you can clear it sell it, too many extra bills on top of mortgage and government making it harder all the time.

Puzzle35

Where is your house? I'm in a similar situation to you but have equity in my house which is going on the Market shortly. Not worth my while renting elsewhere and renting my own out due ton the tax implications. I'm looking to buy in Maynooth.