A downsizer’s dilemma: Is trading two rentals for one future home worth it?

Dominic Coyle - The Irish Times - 22/04
If the ultimate intention is that this will be your home at some point, it become much more than a simple financial decision

We own two properties which are rented and have no mortgages. One is in Co Wicklow and is worth c.€300k. The other is in Glasnevin and valued c.500k. If possible, we would like to sell them and buy a property closer to our home in Dublin which we would rent and possibly move to when we need to downsize from our own home.

We would hope our rental income would end up the same as the combined income we currently receive.

We are aware that the sales of both houses will be subject to capital gains tax. These will have to be paid at some stage – even if that happens when our children inherit them.

Are there any other considerations we need to be aware of? Is it in theory a good or bad idea?

READ MORE

On the Money: the personal finance newsletter from The Irish Times

Tesla earnings: Musk’s robotaxi ambitions under the microscope

Johnny Lappin: ‘I got scammed by a rogue so-called roofing contractor. I foolishly paid him in cash’

Decking, doughnuts and jogging: 25 fads that have been big in Ireland

Ms S.D.

Whether this is a good idea or a bad idea is really a matter for you, depending on your own financial and other circumstances. However, there are a couple of things you might consider.

First up, there is the challenge of matching from one new investment property the rental income two properties currently deliver for you.

I am not personally familiar w...
[Short citation of 8% of the original article]