Hi all,
Looking for some advice on an opportunity in from of us.
A new family home is available for us to purchase. Let's say price is €750k.
We have an existing family home worth approx €370k.
We have approx €250k in the bank and could get a mortgage for €550k as a joint mortgage on our PAYE incomes.
What is the most efficient way to fund the new purchase? Should we:
1. Rent out the existing property for approx €1600pm and get a mortgage for the full purchase price of the new property?
2. Sell the existing property and use the proceeds with a smaller, much more manageable mortgage mortgage (~200k)?
Key considerations are being able to plan for the future. My initial leaning is towards option 1 to keep a property that could be worth more in 10-20 years but the prospect of dealing with tenants etc doesn't appeal to me. Also I know the tax man will take a chunk since there is now BTL mortgage here to offset interest against. Selling the first property is against my instinct of keeping an appreciating asset for the future though. Any advice or experiences appreciated.
Looking for some advice on an opportunity in from of us.
A new family home is available for us to purchase. Let's say price is €750k.
We have an existing family home worth approx €370k.
We have approx €250k in the bank and could get a mortgage for €550k as a joint mortgage on our PAYE incomes.
What is the most efficient way to fund the new purchase? Should we:
1. Rent out the existing property for approx €1600pm and get a mortgage for the full purchase price of the new property?
2. Sell the existing property and use the proceeds with a smaller, much more manageable mortgage mortgage (~200k)?
Key considerations are being able to plan for the future. My initial leaning is towards option 1 to keep a property that could be worth more in 10-20 years but the prospect of dealing with tenants etc doesn't appeal to me. Also I know the tax man will take a chunk since there is now BTL mortgage here to offset interest against. Selling the first property is against my instinct of keeping an appreciating asset for the future though. Any advice or experiences appreciated.