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Accidental Landlord

indie warrior · 2015-08-15 18:09:17

Upgraded in 2008 to a modest 3 bed but paid far too much as did everybody else at the time. When house came up for sale bank was more then happy to give me 100% mortgage and I kept my original house. House is rented out through Ras and I have no issues. I am lucky that rent covers the mortgage repayment and probably left…

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#32 16-08-2015 5:46pm
wench

Registered Users Posts: 1,648 ✭✭✭

Join Date: April 2009

Posts: 1640

indie warrior wrote: »

Yes jumped on house when it came up for sale and seller wanted a quick sale, didn't have time to sell house ( we owed about 70k on it) but paid a fortune for new house and bank gave us whatever money we needed, renting first home seemed like attractive option at the time, tax return normally comes in under 2 k but because I have no repairs or much write offs bill is 4.5, 52% on the rent received!

indie warrior wrote: »

Hi MouseTail, mortgage on investment circa 230k and I have tracker, principal property circa 215 also with tracker?

indie warrior wrote: »

Thanks for reply, mortgages split on both properties so to sell at the moment still in negative equity I'd still owe banks

So if I'm reading these right, only 70K of your mortgage debt relates to the rented property, and the rest is all for your home.

This, combined with your low interest rate leaves you only a negligible deduction of about €600 a year.

If you keep the property, you will have to come up with a long term plan to sustain those levels of tax payments, as you will have them for the foreseeable future.

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