I'm looking for advice/opinions on the following scenario:
We're extenting our home and have an approximate idea of the cost. We have a modest rental property (accidental landlords) that's occupied and have a mortgage on it with 12 years remaining on it. Over the course of a year, after paying mortgage, taxes and upkeep, the rental income is barely breaking even.
In a nutshell we need to decide whether we should sell the rental property and put the profit we make towards our new extension at home and have take a significantly smaller loan, OR, do we retain the rental property, take out a bigger loan which means we could complete the mortgage and sell the property and use the proceeds as a pension pot.
We have tracker mortgages (2.8%) on both our home place and the rental property.
Factors that I'm considering are total cost of ownership of the rental property (and the hassle of managing tenants) VS the potential payoff at the end of the mortgage
We're extenting our home and have an approximate idea of the cost. We have a modest rental property (accidental landlords) that's occupied and have a mortgage on it with 12 years remaining on it. Over the course of a year, after paying mortgage, taxes and upkeep, the rental income is barely breaking even.
In a nutshell we need to decide whether we should sell the rental property and put the profit we make towards our new extension at home and have take a significantly smaller loan, OR, do we retain the rental property, take out a bigger loan which means we could complete the mortgage and sell the property and use the proceeds as a pension pot.
We have tracker mortgages (2.8%) on both our home place and the rental property.
Factors that I'm considering are total cost of ownership of the rental property (and the hassle of managing tenants) VS the potential payoff at the end of the mortgage