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Sell The House ???

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  • 24-01-2006 2:07pm
    #1
    bennyc
    Registered Users Posts: 1,907 ✭✭✭


    Bit of advise please
    I am moving into a new house in the next few months (self build) and currently have a mortgage of 125 left on my existing house I reckon a fair price at the moment is 225+ on the current house. I have taken out 220 for the new house but will need another 30-40 to finish it off. I am living outside a major town at the moment and renting is possible but not gaurenteed.
    I do not have a pension and hitting 30 so need something in place,
    would I be better off holding the house or selling and ending up with a small morgage of around 110K then taking out a pension. I cannot arrord both house and pension

    Any advise :confused:


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    #2
    masterK
    Registered Users Posts: 2,757 ✭✭✭masterK


    The real question is will the rate of growth on a pension be greater than the increase in the value of the property. The location of the property and any future development in it's area will have a bearing on it's future value.

    You may also be liable for capital gains tax on the house if it can be viewed as an investment, I'm no expert on taxation so hopefully somebody else can explain.

    Also note that you can only pay a certain amount into a pension scheme that would be eligible for tax relief each year. Therefore another option if you sell the house would be to just put the maximum allowable for tax relief into your pension each year and invest the remainder in a high interest deposit account each year paying the max into your pension, that would maximise your use of the tax reliefs available.


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    #3
    ronbyrne2005
    Closed Accounts Posts: 3,494 ✭✭✭ronbyrne2005


    bennyc wrote:
    Bit of advise please
    I am moving into a new house in the next few months (self build) and currently have a mortgage of 125 left on my existing house I reckon a fair price at the moment is 225+ on the current house. I have taken out 220 for the new house but will need another 30-40 to finish it off. I am living outside a major town at the moment and renting is possible but not gaurenteed.
    I do not have a pension and hitting 30 so need something in place,
    would I be better off holding the house or selling and ending up with a small morgage of around 110K then taking out a pension. I cannot arrord both house and pension

    Any advise :confused:
    i would advise pension over property for next 20-30 years especially if you arent highly likely to rent the house for a good yield and the fact property is extremely high at present and unlikely to go up much further.the tax advantages and historical returns makes pensions a better option.
    you only pay CGT on an investment property when you sell it and not on your principal private residence.


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