Downsizing Advice needed

[ThisisMax]

Hi
I got great advice on this forum a while back. Now have a bit of a query and would appreciate any thoughts. Have an appt with a new financial planner in July but interested in responses here.
I'm 50, my wife 51. Both freelancers/ small business. Variable salaries.
Wife 30kish, Me this year 70k.
Two kids 16, 13. College Fund of 100k in fund. Cash of 160k. Mortgage paid off. House worth 500k but cannot sell as parents in law live on site in seperate house. My wife has a biggish inheritance in time. Both of us comfortable now with how things are.
Rental delivering €1050 per month after tax etc. Other rental delivering 1k per month after tax. Thats our cashflow/savings. Both of these are rentals of part of our house.
Our house is big, old, ok energy wise - kids will be gone in 5-6 years to college. We are now thinking we should look at buying a smaller house locally, easy to maintain, better energy, could retrofit etc. We see houses for 250- 300 k that are good.
We could then rent our main house in a good local Airbnb market or long term. Maybe 2-3k month.
Any thoughts? Would have to get mortgage for new house etc. Maybe in a few years. Should we save cash to get an even smaller mortgage? Should we not move at all?
Thanks

 

[llgon]

Rental delivering €1050 per month after tax etc. Other rental delivering 1k per month after tax. Thats our cashflow/savings. Both of these are rentals of part of our house.

We could then rent our main house in a good local Airbnb market or long term. Maybe 2-3k month.

Are you saying that you will get less for letting your house as a whole (after tax) than you are currently getting in rent while living in it as well?

If that is the case I wouldn't see any financial reason to move. You will still have to maintain your current house while it is let.

 

[ThisisMax]

No, Its in three units. Get the same- €1050, 1k and whatever main part of house gets on market- maybe 2k.
€1050 is rent a room tax free so that would change to full market rent of 2k minus tax etc so lets say 1k - becsuse I cant do rebt a room if house is not my ppr. Or could Airbnb it.
The 1k is a small unit so that stays same and then main part of house would be rented seperately. Its kind of a courtyard so there are three parts.

 

[elcato]

One bit of advice that you should start straight away: Start clearing rooms/attics/sheds of hoarding. Bring down to the bare minimum regarding furniture. This, alone, is about 6 months work!