Secure Your future

Menu
Contact Us
Contact Us

Should I Sell My Investment Property?

March 1, 2023
Tax Planning Strategies for High Income Earners ireland

To hold on to investment properties?

As part of the fact finding review with our clients I often find out they have an investment property and they will ask for our opinion as to whether they should hold on to investment properties they’ve owned for a number of years or sell them to reduce debt or take out the equity.

Investment Portfolio: The old fashioned advice in Ireland was to invest in ‘bricks and mortar’. However, I always ask people to look at the investment in the full and work out the maths, also what percentage of your investment portfolio does this represent, you shouldn’t have it all invested in one asset class. What is the true return you are receiving and have prices topped out?

Tax-efficiency: Rental income from a personally held property is fully taxable at an individual’s marginal rate. This means that any rental income received from your tenant will be added to your other taxable income such as salary and bonuses.

Tax Bill: You can reduce your personal tax liability each year by making a personal pension contribution within the age-related limits.

Liquidity: Don’t under-estimate the benefits of liquidity when you own any asset that you hope will appreciate in value over time. Liquidity simply means that you can sell it and turn it into cash whenever you want at short notice. Obviously, property does not fall into this category.

The issue with an illiquid asset like property is not necessarily the price fluctuations when it suits you to sell, sometimes there simply is no price if there is no buyer for it. This caught many people out who wanted to retire during our property crash from 2008 onwards.

Property prices are high at the moment. It may be a good time to exit the market and with fund prices lower than 18 months ago, it could be a good time to sell and diversify your investments.

*I am selling my own property and I am using a property stager, I will post pics soon

What Customers Have To Say

Testimonials

Oisin at Secure Your Future recently helped me with some savings and investment advice. I found him trustworthy, the advice provided to be independent and simple to understand. Happy to recommend him as an advisor for savings and investment advice.
Sean McKinleyAccountant - Castleknock
As a small Business owner I had spent most of my time working in the now and not planning my own personal future. I was recommended to reach out to Oisin and from first contact I found Oisin's approach to be extremely professional and knowledgeable with simplifying the process for me. i would highly recommend anyone looking to pre plan their future to contact Oisin.
Andrew KennySenior Project Engineer at PM Group
Last year we sought your services to advise us on planning for our financial security in retirement. Since that time we have had several meetings which were delivered in a straightforward manner and easy to follow. I would highly recommend Oisin and his team at Secure Your Future.
Kevin DoranOwner - The Denture Clinic
Oisin was very flexible and efficient with his services. We had an initial face to face consultation and then the process was completed remotely via email, text message, teams, and online document signature. Oisin was a pleasure to deal with and I'd be quick to recommend him to anybody looking for help with any aspect of their pension.
Gerard KennyHead of CQV - Ireland at PM Group

Trusted financial advice to secure your future.

Book Consultation
Share this