Rent or Sell an Inherited house

GTSport

I've recently inherited a house and I'm not sure if I should sell it or rent it out. I'm in the position of having paid off my own mortgage so don't immediately need the money. The house is in Ireland and a similar property is on sale for the equivalent of around £80k. I live in England. The property is about 40yrs old but has been well maintained but does need redecorating and could do with an update to the bathroom. I'm not aware of any major problems with the building itself. My initial thought is to rent it until I retire in 15yrs time then sell but I'm worried I may be letting myself in for a lot of expense as part of the rental process. Should I just sell now and invest the cash somewhere?

clutton_2

why not talk to some local irish letting agents first - see if there is a demand for property in the area... not everywhere is easy to rent...

if you keep it for 15 years you may have a much higher Capital Gains Tax to pay when you sell it, which may negate any rental gain. - but you would really need to talk to an accountant on that one

Doozergirl

If I were desperate to be a landlord I'd seriously consider selling up over there and buying something much more local that could be managed more easily - and cheaply! It's hard managing something from a distance - without an expanse of water to contend with!

If it's in the Republic then the exchange rate will help you at the moment I guess with either letting or selling, but I'd be tempted to sell with the exchange rate the way it is.

MarsdenCuckoo

Am no expert but believe that if you're in a position (and want to of course!) to live in the house yourself for a certain period then that will negate the capital gains tax position in some way. As said above, maybe a good idea to see an accountant?

Long term, if it's somewhere that you might like to retire to and/or use as holiday accommodation then that all comes into the equation. If not, then renting remotely could be a problem unless you can find a tenant you know and trust.

martindow

I think you need to talk to Irish experts on taxation to find out the pros and cons of selling or letting. Although there are many expert people here with great knowledge of the situation in the UK things could be very different in Ireland.