Rent or sell my apartment?

Wesser · 09-03-2019 4:14pm

Don't sell it. Your not breaking even . You're making 700 e a month for very little work.
Consider it this way. Somebody is paying your mortgage for you. Over the next 25 years... someone is buying an apartment for you!

Ps don't forget for your next mortgage you are a second time buyer so you need a 20 % deposit... not 10 %. That might be a factor in your decision.

Wesser · 09-03-2019 8:03pm

Hi Katie. I got the figure if 700 e from your original first post.

Pawwed Rig · 09-03-2019 8:14pm

Why do you want to keep it? Is it for pension purposes?

katie275 · 09-03-2019 8:23pm

Pawwed Rig wrote: »

Why do you want to keep it? Is it for pension purposes?

I would have kept it to pass on to my children in the future, or sell for a lump sum

Calltocall · 09-03-2019 8:23pm

I would sell OP, there’s just too much risk with renting, I had a nightmare a few years back with tenant who stopped paying, took me an age to get him out and the stress of it put years on me, If you get a great tenant great BUT you’re rolling the dice and it’s an awful lot to manage if things go wrong

Pawwed Rig · 09-03-2019 8:28pm

katie275 wrote: »

I would have kept it to pass on to my children in the future, or sell for a lump sum

Just give your kids the cash and let them decide where they want to live.
You can sell it for a lump sum now so why wait? Unless you think that you will get more for it in a few years but that seems speculative to me.

katie275 · 15-03-2019 12:51pm

I rang TSB today to find out how much they would charge to pay off the mortgage in order to sell, they wouldn't tell me over the phone, have to wait on a letter (7 working days)
Anybody got an idea of a rough number we could be looking at here?

Thoie · 15-03-2019 1:14pm

katie275 wrote: »

I rang TSB today to find out how much they would charge to pay off the mortgage in order to sell, they wouldn't tell me over the phone, have to wait on a letter (7 working days)
Anybody got an idea of a rough number we could be looking at here?

If you take a look at your last statement, see what the last "interest added" figure was (for a year), then add that to the €135k and that would probably be the absolute max you'd owe.

It all depends on how the interest on your mortgage is calculated (daily, weekly, monthly, quarterly), the date of final pay down, what payments you'll make between now and then, etc.

The letter you get will only be precise as of "that day". When I sold my place there was a slight difference, but it was less than €100 (and I can't even remember in what direction - I think it was in my favour). It all depends on the exact closing date of the sale, and when the money to pay off the mortgage hits the bank. Between now and that date, you'll be making your monthly payments, and interest will be adding on.

katie275 · 15-03-2019 2:02pm

I spoke with my solicitor who reckons it will be 6-9 months interest at least, will have an exact figure when I get the letter

Thoie · 15-03-2019 2:38pm

No-one will be able to give you an exact exact figure yet, but roughly, if you're talking 9 months then if current balance is 135,000, and you make 9 months of payments at 700 per month, then the final balance will be around 128,700 + interest. If I was doing rough calculations in your position, I'd call it 130ish, give or take a thousand.

Having previously bought, you'll be familiar with the fact that there always seems to be a lot of "giving" a thousand, and very few "takings"

katie275 · 15-03-2019 2:58pm

Thoie wrote: »

No-one will be able to give you an exact exact figure yet, but roughly, if you're talking 9 months then if current balance is 135,000, and you make 9 months of payments at 700 per month, then the final balance will be around 128,700 + interest. If I was doing rough calculations in your position, I'd call it 130ish, give or take a thousand.

Having previously bought, you'll be familiar with the fact that there always seems to be a lot of "giving" a thousand, and very few "takings"

Thanks. If we're talking a couple of thousand, I can afford to lose that from the profit, I was just worried that I would have to pay a big chunk of the profit to pay off the loan early, didn't know what sort of money was involved

PokeHerKing · 15-03-2019 4:03pm

So much to consider imo. Where is the apartment, if its close to a hospital or college or is in DCC I wouldn't be in a rush to sell it.

In other words if its in a rent friendly area I wouldn't sell. If its on the outskirts of Dublin like saggart I'd be selling.

Location would very much be my driving decision to sell or not. It should be your driving decision when buying as well.

Another thing to consider for me would be if rents halved over night could you afford to pay both mortgages? If yes, again I wouldn't be rushing to sell.

Unless society hits a restet button property will always be an excellent long term investment, provided you chose wisely with your original purchase.

15-03-2019 4:09pm

Pawwed Rig wrote: »

Just give your kids the cash and let them decide where they want to live.
You can sell it for a lump sum now so why wait? Unless you think that you will get more for it in a few years but that seems speculative to me.

Lol.....speculative.

He has a mortgage currently and the rent is covering it. So the choice is sell it now and make €45k or wait until the mortgage is paid off and sell it then. The only way this is in any way speculative would be if the government suddenly built 200,000 houses a year and started giving them away.

@OP:

I'd rent it out. Think of it as a pension, what would a €45k investment do for your finances when you retire vs a €300k+ sale in 25 years time?

Rent or sell my apartment?

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