Pay mortgage of investment property or home?

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brodiebabe

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My brother in law has a mortgage for both the house he lives in and also an investment property he rents out. He will be coming in to a lump sum (about 10,000) and is thinking of paying it off one of the mortgages.

Which mortgage should he pay it off.

The home mortgage is about twice the amount of the investment property mortgage so he was thinking of reducing the larger mortgage. Any advice?
 
Reduce the mortgage on the house he lives in ! He will be paying tax on the rental income of his investment property and in simple terms, the larger the mortgage on this investment property the less tax he will have to pay.
 
The (stickied to the top of this forum) suggests that the PPR mortgage should be paid off before the investment property mortgage.
 
brodiebabe said:
My brother in law has a mortgage for both the house he lives in and also an investment property he rents out. He will be coming in to a lump sum (about 10,000) and is thinking of paying it off one of the mortgages.

Which mortgage should he pay it off.

The home mortgage is about twice the amount of the investment property mortgage so he was thinking of reducing the larger mortgage. Any advice?
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Yes pay the home loan I would also suggest that he keep paying the same amout of money of his home mortgage,
 
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