Moving abroad - should I rent or sell my apartment

djimi

Scortho wrote: »

It is plausible, but you can't deny the fact that d3po is right that the op hasn't a clue about being a landlord.
There's a lot more fees to be met than just the mortgage payment.

Dont get me wrong, Im not disagreeing that the OP hasnt a clue. But the point still stands that we have no idea how much the mortgage is on the place; for all we know the OP might have had 75% cash deposit and is paying €400 a month to the mortgage, meaning they dont have to do the math to know that a rent of €2200+ is going to cover it.

Santa Cruz

If you sell now you are selling in a market that is just starting to rise. There will be no need for any significant input from you once you have a proper management company looking after the property. Thousands of people live overseas and have properties rented out without any hassle

Santa Cruz

djimi wrote: »

If the Gasworks is the one that Im thinking of then the outrageous rents being charged there at the moment could well cover the mortgage and then some :eek:

The "outrageous" rents are there because of the laws of supply and demand.
People want to live close to the city and their place of employment and are willing to pay for the privilege. Others prefer to live out in the sticks at what they think are cheaper costs. They don't factor in the costs of transport, time loss etc.

djimi

Santa Cruz wrote: »

The "outrageous" rents are there because of the laws of supply and demand.
People want to live close to the city and their place of employment and are willing to pay for the privilege. Others prefer to live out in the sticks at what they think are cheaper costs. They don't factor in the costs of transport, time loss etc.

I understand that. Still doesnt change the fact that something that costs as much per week pretty much as I pay per month is pretty outrageous, to me anyway :P

Im not knocking them; they look like nice apartments and if people want to pay that much to live there (and can afford it) then more power to them.

handlemaster

I think the LL issues can be over egged by some. Sure there can be problems but with a good letting agent managing the apt there shouldnt be much hassle. To use that over used phrase 'at the end of the day' if your getting hassle sell it then. The location is great you shouldn't have much problem letting. Best of luck

DMG1983

D3PO wrote: »

you don't realize anything., Your mortgage repayments aren't deductible only 75% of interest is. God almighty.

Why do you bother to reply to a post if it is only to be nasty? I thought a forum was a place you could come to seek advice- if you don't have any to give then please don't waste your time in responding. I never claimed to be an expert in being a landlord or a tax specialist and I find it hard to understand why you are acting so indignant that I should dare ask a question.
Thank you to everyone who has responded with actual advice on this matter, I appreciate your help.

D3PO

the point is you weren't asking the question. you came on with this cock and bull notion rent = more than mortgage therefore everything is covered financially.

a smidge only a smidge of actually doing any research would have made you realize that's not how it works. I am indignant of you and ever other person who goes or thinks of going into becoming a LL in a half assed way.

DMG1983

D3PO wrote: »

the point is you weren't asking the question. you came on with this cock and bull notion rent = more than mortgage therefore everything is covered financially.

a smidge only a smidge of actually doing any research would have made you realize that's not how it works. I am indignant of you and ever other person who goes or thinks of going into becoming a LL in a half assed way.

Actually I was asking a question- I made a statement regarding my mortgage being covered by my rent- which it will be and I still stand by that even though people have highlighted things which I was unaware of.
As I stated numerous times I will be getting a pm company to manage the rental so I will not be a half assed landlord.
What has the mortgage being covered by the rent got to do with my ability to be a ll anyway- if it wasn't covered I would make up the difference myself and be responsible for any other bills.
I am sorry if you have had a bad experience with a landlord in the past but there is no need to be so rude and judgemental.

relax carry on

While I don't exactly agree with D3POs way of highlighting the OPs misunderstanding of the taxation side of being a landlord, he does raise the point the continues to get many amateur or reluctant landlords in trouble with Revenue.

The general line is "my rental income doesn't cover my mortgage, so no tax is due. If no tax is due then no tax return is due". This is then usually exacerbated by a failure to cancel TRS and a failure to register the tenancy(s) with the PRTB.

The bottom line is anyone renting out any properties would be wise to speak to a good tax advisor as part of their preparations to rent.

DMG1983

The bottom line is anyone renting out any properties would be wise to speak to a good tax advisor as part of their preparations to rent.[/QUOTE]

Thank you for the reply, I have an appointment to speak to a tax consultant next week so I will be in a better position to make a decision then.

Lantus

Can't see it mentioned but you will also have to register with the Private residential Tenancy Board as a landlord.

As well as revenue issues and the EA you will need to make sure you have landlords insurance and notify your mortgage provider which may affect your mortgage. The management company will need to be notified and of course your management fees need to be factored in.

Renting will create wear and tear on your property. The nice kitchen you put in may need to be replaced or repaired and the property cleaned ready for the next tenant. You may have a gap of one or two months between tenants and the mortgage will need to be covered. New tenants means re-registration with the PRTB. A good EA will do a lot of this for a price.

Most of us have seen the post regarding the tenant whose boiler failed and the landlord just shrugged his shoulders as he had no money. I'm guessing your apartment is all electric but things can still go wrong.

Its not a tale of woe but you need to make some good financial allowances for these things. Rental yields like all things work out best over a long period of time. I don't know anyone who had to move away and made any money on their property, most were just glad they didn't lose too much!

Grandpa Hassan

Lantus wrote: »

I don't know anyone who had to move away and made any money on their property, most were just glad they didn't lose too much!

In the short term, yes. But you end up with an unencumbered asset which you can either sell in your retirement or take the rental income to supplement your retirement income. I view all the associated costs as an investment.

If you're not prepared to play the long game, then being a LL is daft. But it forms a perfectly sound piece of retirement planning