Better to try sell?

population

Hi all

I have been rummaging through my head all night on this issue and I was wondering what other people think. I have a house that I bought in 2003 for 177k which was intended only as a family home as personally I had no interest in buying property to become a landlord. However 2 years ago when the sky fell in both myself and herself had to move abroad to find work. Luckily we managed to rent the house out to a lovely couple who have 2 kids in the local school and seem quite content to stay there.

I make up a shortfall between the rent and mortgage of about 175 euro each month, and obviously I have associated costs with NPPR PTRB accountancy fees, management fees and of course it looks like a property tax and water tax is on the way. I have been looking on DAFT to get an idea of what the general price of buying a property in the area is, I know that is not a great indicator but better that than estate agents, and I think if I priced it keenly enough I could probably sell it with about 20k negative equity which I would have to try pay off with savings and a personal loan.

One of the reasons I am contemplating this is because it looks like we may not actually ever return full time to Ireland. Work and personal and family reasons, and I just do not know if I want the house hanging over me long term if I am not going to live in it again and will be making a life abroad. If as indicators suggest prices are only going to fall long term than would I be better just cutting my losses and selling, or trying to hold onto it? My biggest issue is if I do decide to try and sell then I will have to talk to my tennant who naturally will start to look elsewhere just in case, and if he moves and the house does not sell I am completely fecked altogether. Crystal ball stuff I know. As much as it would pain me to do all this, would it be better just to take the medicine now, or to just be content that it is rented out which makes me luckier than a lot of people out there?

Thanks

D3PO

Ok so this isnt an opinion but I wanted to comment on parts of your post.

Sounds to me like you are filing rental returns in Ireland via an accountant. If your non resident the onus is on the tennant to withold a portion of the rent to be forwarded to the Revenue.

Im not an expert but Im pretty sure that implies you dont need to file returns. So theres a saving on accountancy fees perhaps

regarding the management fees you are paying. Just to put some context on that you wont be paying these where you are now renting so its a status quo really.

Water tax is coming in but Id be very surprised if any landlord agrees to pay for this. Water is a service / utility like any other. You dont pay your tennants ESB so why should you pay their water bill ?

Like I said not an opinion on your situation but clearing up some of the things you are using to weigh up the situation should be done to allow you make the right decision for you.

Sand Wedge

D3PO wrote: »

Ok so this isnt an opinion but I wanted to comment on parts of your post.

Sounds to me like you are filing rental returns in Ireland via an accountant. If your non resident the onus is on the tennant to withold a portion of the rent to be forwarded to the Revenue.

Im not an expert but Im pretty sure that implies you dont need to file returns. So theres a saving on accountancy fees perhaps.

OP will need to file rental accounts otherwise they will not get relief for rental expenses. The deduction by tennant will be a credit against any liability OP will have.

Penguino

Hi Population

It is a difficult time to sell at the moment in general but in some areas houses are selling.

I sent you a PM with some extra info

population

I am aware of filing rental accounts and this is something I do via my accountant. Away from the tax issues, long term would a projected 20k loss even itself out over time with the expenses currently being put into the property. Again this is all back of matchbox stuff.

Also Penguino, it serves everybody who may read this thread better if any and all discussion is done on thread.

mvt

Maybe ask the people that are renting if the would consider buying it?
Also,having spent a long time aboard myself never say never on returning back again,at some point.