Good time to sell ?

pilly

sunnyday1234 wrote: »

I dont understand this. Its my house and if i provide 3 months notice then i can sell it.
Yes it was bought at the height of the boom and 290k was / is crazy money for mallow
These houses dont seem to have increased in price in the last 6 months or so , thats why i think they could be reaching their max true value
This mortgage is not on a BTL rate. I think CGT is only payable in the event the price goes above the purchase price ?

If I were you I'd go with your gut. Too many people held out the last time prices rose hoping to make a huge profit, never panned out for them.

amcalester

pilly wrote: »

Without being pedantic you specifically said per year, nowhere did you say this year.

Fair enough, first sentence was related to the immediate past while the second was looking into the short term future.

I would have thought it obvious that I wasn't suggesting an indefinite 10% price increase.

Fian

Donie75 wrote: »

I'd be interested to hear what the situation is with CGT on rental properties also. I bought a house 12 years ago and rented it out 8 years ago. I paid €319k for the house and it is worth around €250K now. I am considering selling the house in the next 6 to 12 months.

Also, are local authorities buying rental properties? My tenant is on rent allowance and is on the local housing list for 6 years.

CGT is not an issue for OP Atm, since the value is below what he paid for it - there is no gain to tax.

In your example if you achieved a price higher than you paid (+ allowable additional costs) you would pay CGT on 8/12ths (75%) of the gain. And again in your case there does not appear to be a gain to tax.

amcalester

sunnyday1234 wrote: »

Thanks everyone
Who could advise on the CGT ? Accountant or solicitor
What is tenant over - holding ? 
Also i cant remortgage as house is worth 220k and mortgage left on it is 196k so thats still over 80%

Over-holding is where the tenant stays on in the property after the eviction date.

In the case of a HAP tenant this could be because they are unable to find alternative accommodation and have been advised (either by the council or Threshold) to stay where they are.

You as the landlord will then have to initiate legal proceedings route to get them removed can take months and is expensive.

Its worth checking the HAP limits for your area to see how your rent compares and if the tenant would be able to find suitable accommodation at the same rent.

Fian

sunnyday1234 wrote: »

I dont understand this. Its my house and if i provide  3 months notice then i can sell it. ?

In theory you are entitled to terminate tenancy for the purposes of sale.

If tenant chooses not to comply with eviction notice (and subsequent decisions) you face a very costly and prolonged battle to evict. You go to RTB, they adjudicate in your favour, then you go to court to get eviction order, then you go to sheriff to execute that order. As your tenant is on hap presumably they are not a mark for costs/damages.

No reason to assume your tenant will do any of that from what you have said though. Below market rent can increase the risk that people are reluctant to leave, not sure if your rent is below market rates.

sunnyday1234

My rent is market rates and they are actually very good tenants. So CGT isnt an issue at least

Will do the sums with the wife and decide then what to do. Its a tough decision. Even putting the 250 a month that we are currently using to top up the rental house off our own PPR would reduce the monthly payments on that so that would benefit also

JohnCleary

Why bother with an EA? I sold myself directly*

* I lived 500m from the property, I was in a lucky position to be able to show the property to people at any time, I like talking sh1te, the property was in turn-key condition, all paper-work prepped by me (MUD, Compliance, etc...).

If you have the 'love' for it, I highly recommend it. Great learning curve. Saved quite a few €€€ which I considered 'payment' for my work... better in my pocket than an EA's

grass_cutter

OP , your house will regain what price you paid for it originally , its in the cork city commuter belt , the economy of cork is one of only three economies which are bigger today than they were in 2007 , the other two being dublin of course and galway city

i sold an apartment in limerick city a year ago having picked it up for nearly 40% less only eighteen months prior to that , thought i was a great fella with my profit but the reality was i just bought it for nothing the first day , once you sell in rising market , you quickly discover everything else has risen along with your asset and you really have nothing to replace it with

if the tenants are not troublesome , i would hold on to it , its fashionable to give out about property these days but what other options are there , the government penalises investing in stocks due to the seven year rule

making money isnt easy no matter what you do

LirW

Either can give you advise.

Overholding means that the tenants are told to just ignore the notice and stay put. You can't just chuck them out after the notice period is up and if they don't leave you have a serious problem and it'll cost you time and money and all of your nerves to get rid of them.

Personally I'd get rid of it since it sounds like a burden and I don't like financial burden or commitments like that. Trying to ask the council isn't a bad idea since they might just keep the tenants in the house if they're on the housing list.

grass_cutter

LirW wrote: »

Either can give you advise.

Overholding means that the tenants are told to just ignore the notice and stay put. You can't just chuck them out after the notice period is up and if they don't leave you have a serious problem and it'll cost you time and money and all of your nerves to get rid of them.

Personally I'd get rid of it since it sounds like a burden and I don't like financial burden or commitments like that. Trying to ask the council isn't a bad idea since they might just keep the tenants in the house if they're on the housing list.

the council would not pay the colour of the actual market value , if a house was worth 75 k , the council would offer 50 K

Nermal

Imagine you didn't have the apartment. Would you buy it, putting down a €20K deposit and subsidising the mortgage by €230?

If not, sell it.