How to make money from an owned home

BogMonkey

What options are there for converting your mortgage free property into money as quickly as possible?

There is the option of releasing equity by taking out a mortgage, but unfortunately the bank will only do that for renovations or paying off loans.

Theres selling the house, the biggest problem with this is it takes such a long time through an estate agent. An auction is much faster but would result in the house being sold at much lower than market value.

Are there any other options?

Blacktie.

Renting it out?

popa smurf

Is the house in Dublin would you take bag of cash for it , try all local auctioneers tell them you need cash fast they will find a cash buyer for it at a discount of corsre , they have always lads on there books looking for a bargain

iainBB

Airbnb

looks at their site your area and see prices per night. You might be surprised.

Tax is a killer on this.

BrokenArrows

One of the questions would be "what % of the property do you need to convert to cash".

If its 100% then sale is your only option. Obviously you would need to specify Cash Buyer Only.

BogMonkey

10% but a mortgage is the only option I've come across.

BrokenArrows

BogMonkey wrote: »

10% but a mortgage is the only option I've come across.

Speak to a property agent and see if they can sell 10% of a property.

yeyeye

Just curious lads, what is the actual tax % to be paid from rental income. And if you have a number of units do you need to set up a company?

BrokenArrows

yeyeye wrote: »

Just curious lads, what is the actual tax % to be paid from rental income. And if you have a number of units do you need to set up a company?

It is treated as "income" so you pay the same tax as if it was a PAYE job. So depends on your tax bracket.
However you can make deductions for costs like repairs etc.

yeyeye

BrokenArrows wrote: »

It is treated as "income" so you pay the same tax as if it was a PAYE job. So depends on your tax bracket.
However you can make deductions for costs like repairs etc.

So you'll be paying 40% of the gross income. What if you have a number of properties would you be better off to form a company and pay lower tax I've heard rental companies pay 25% on rental income

Sam Kade

BogMonkey wrote: »

What options are there for converting your mortgage free property into money as quickly as possible?

There is the option of releasing equity by taking out a mortgage, but unfortunately the bank will only do that for renovations or paying off loans.

Theres selling the house, the biggest problem with this is it takes such a long time through an estate agent. An auction is much faster but would result in the house being sold at much lower than market value.

Are there any other options?

Rent it out best option at the moment.

bmwguy

yeyeye wrote: »

So you'll be paying 40% of the gross income. What if you have a number of properties would you be better off to form a company and pay lower tax I've heard rental companies pay 25% on rental income

You will be paying more than 40%, usc and prsi also as far as I know. Companies will pay corporation tax but you will pay the same tax when you pay yourself as from just taking it in personal rent income. Either way you will have to be creative if you don't way to pay 50 odd % on the income

CPTM

BogMonkey wrote:

There is the option of releasing equity by taking out a mortgage, but unfortunately the bank will only do that for renovations or paying off loans.

As a matter of interest, is this the same with all banks? I always thought it was a pretty normal thing to re-mortgage for any reason you'd like, so long as you have a good credit rating, can show an ability to repay, and the amount is not too large (10% as you mentioned)..

BogMonkey

CPTM wrote: »

As a matter of interest, is this the same with all banks? I always thought it was a pretty normal thing to re-mortgage for any reason you'd like, so long as you have a good credit rating, can show an ability to repay, and the amount is not too large (10% as you mentioned)..

This is what I was told by mortgage brokers. That in more recent years, banks have tightened on what they will release equity for.

Dave876

It depends on your situation,

If you need the cash now and the property is in good location then put it on the market,

If you need the money really quick then go to the auction houses but this will yield a discounted amount compared to selling on the market,

If you want to earn from it over time and you don't need a lump sum right, then rent it - this is what most would do, but your situation may be different to most