Sell my house or rent it out for a year?

gazzer

Should I sell my house or rent it out for a year?

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Due to on going anti social problems in my estate myself and my partner were thinking of leaving the area. The place has left a sour taste in our mouths and we just want to go elsewhere. We were going to just sell up and rent somewhere else for a year. On top of that we will be moving to Cavan in a years time under the decentralisation process.

I dont have a clue how long it would take to sell my house and I couldnt really afford to be renting one place and trying to sell my house over a prolonged period of time so we were thinking of doing the following:

1. For the rest of this year we are going to rent out a house in Dublin (possibly Castleknock or along the Navan Road area).

2. We are going to rent out our current house. I dont envisage a major problem with that as our house is very near to Ballycoolin Ind Est and Blanch S C and a lot of houses in the estate are been rented out. Our mortage repayments are 1300 a month(20 years left on the mortgage) and houses for rent in our area are going for between 1250 and 1400 so as long as the rent covers our mortgage repayments (or even if I have to put an extra 50 or 100 euro a month to it) we will be happy.

3. As soon as we have a definite date for our move to Cavan we will start actively seeking out a house but will rent a house in Cavan initially. My partner is from Cavan and has a brother in law who is an estate agent in Cavan so hopefully with a combination of their knowledge we will get a good home in a good location.

4. After a year or so we will look at the property market and see if we can sell our current home. We may decide at that point to continue renting.

As regards paying tax on my rental income. As far as I am aware(though I have to double check this) I can write off the mortgage interest portion of my mortgage (1100 a month at present) as well as 12.5% wear and tear allowance so even if I do end up paying some tax it would be that much(I think). My brother works in the tax office so I will ask him.

Im not sure about the capital gains tax.. again I will have to ask my brother about that.

What do you guys think. Should I just put the house on the market and bear the financial brunt for the length of time it would take to sell my house or is renting it out for the year a good option?

Thanks

Supercell

I think from reading your posts on n.ie (if that is you too) that you should sell and be shot if the place.
If you rent it you're just prolonging the agony.
Life's to short to be putting up with what you are.

I live in a place where I don't need to lock the front door and often forget to, I don't bother locking the car, and when I go out for a walk I leave the keys in the front door because I rather not carry them.

I don't think I could put up with what you do without being hospitalised due to stress, I'm not kidding.

If it was me, I'd get the hell out, you're not getting any younger and there are plenty of places around where you can just enjoy being at home!
You only get one shot at life, why spend it in a place that doesnt make you smile?

gazzer

@Longfield.. Yeah that is me on n.ie..

I would rather sell to be honest but I dont want to be here any longer than I have to. It could take months and months to sell the house whereas I could haave tenants into the house by the end of March I reckon.

It all really boils down to finances. I cant really afford to rent a place and buy a mortgage whilst waiting to sell. If I thought I could put the house on the market now and have it sold and the money in my pocket by June I would leave now and rent somewhere. However if it took till the end of the year to sell I wouldnt be able to afford that. I really need to sit down and think about it.

Supercell

The housing market is in full crash mode right now, price the place accordingly, this time next year that number is going to be about 15-20% smaller imho.

You can put the place up 5% less than similar places on offer NOW or 20% (then now) less a year from now and match whats on sale THEN.

Get out of there and lick your wounds, you'll probably still end up ahead of what you paid for the place.

mastermind2005

Longfield has more or less matched what advice i would have given, i would add tho that you could rent the house out while you have it on the market if you can find a suitable tennant