Hi,
Need advice please. How do I decide to either buy out out a co-owned Rental property or cash in equity?
My co-owner of a rental property wants to sell the property for his own good reasons (needs the equity). I want to support him & not block it.
I am trying to decide do I just sell the property & both take the equity or should I buy him out.
Some details:
Rental House value ~€250K
Rental Remaining Mortgage ~€100K
Equity = ~€150K (€75K each)
Mortgage term remaining ~ 10 years.
Rental ~ = monthly rent (no major issues).
Age - mid 40's.
Personal home mortgage is ~ ~€260K, house value is ~€900K, interest rate ~3.2% (fixed 3 years).
Option 1 - sell house, take €75K minus expenses. Use the Equity to reduce own home mortgage.
Option 2 - Buy out co-owner - Increase mortgage by ~€75K, extend term to ~17 years to ensure rent covers the mortgage repayment. Sell house in 10+ years.
I think I will get the mortgage increase approval.
How do I decide what is the financially correct thing to do? I feel I want to buy them out (option 2).
My pension is ok/needing a top up (thinking this could be this rental property).
thank you all,
Need advice please. How do I decide to either buy out out a co-owned Rental property or cash in equity?
My co-owner of a rental property wants to sell the property for his own good reasons (needs the equity). I want to support him & not block it.
I am trying to decide do I just sell the property & both take the equity or should I buy him out.
Some details:
Rental House value ~€250K
Rental Remaining Mortgage ~€100K
Equity = ~€150K (€75K each)
Mortgage term remaining ~ 10 years.
Rental ~ = monthly rent (no major issues).
Age - mid 40's.
Personal home mortgage is ~ ~€260K, house value is ~€900K, interest rate ~3.2% (fixed 3 years).
Option 1 - sell house, take €75K minus expenses. Use the Equity to reduce own home mortgage.
Option 2 - Buy out co-owner - Increase mortgage by ~€75K, extend term to ~17 years to ensure rent covers the mortgage repayment. Sell house in 10+ years.
I think I will get the mortgage increase approval.
How do I decide what is the financially correct thing to do? I feel I want to buy them out (option 2).
My pension is ok/needing a top up (thinking this could be this rental property).
thank you all,