Pay down mortgage or keep for investment

Could do with some advice

Selling rented apt will end up with about 110k after all expenses.

Have another rental with 185k left on interest only due to mature in Nov 27 (on a tracker only costing about 110 / month)
Could sell for about 260k
Separately Have saved 150k so well on the way to covering this .

Home has about 135k left on mortgage on fixed rate for just over 2 years

No other short term debt.

Options as I see it

1. pay down the 110 off the other investment property leaving 76k due in 5 years.
2. break out of the fixed and wipe out most of the home mortgage.
3. Leave the mortgages and invest for 5 years
4. Sell the other rental and get out of the evil landlord game altogether clear all mortgages and have about 200k in the bank

I know I am losing money on savings with money in savings with inflation

Frank said:

Separately Have saved 150k so well on the way to covering this .

Home has about 135k left on mortgage on fixed rate for just over 2 years

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Frank said:

Have another rental with 185k left on interest only due to mature in Nov 27

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Hi Frank

Without the detailed figures of rent and interest rates, no one can comment on whether your should sell these investments or not. We would also need to know the current value and the acquisition cost to know whether there is a CGT liability which might help to determine which one to sell.

Having said that...

1) I would guess that the investment properties are very profitable and should be retained.
2) If you do conclude that you should sell an investment property, then there is no need to do it until 2027 when the mortgage matures.
3) In the meantime clear your home mortgage - it is probably on a higher net rate than the two investments. In other words, the rate on the first mortgage less tax is lower than the rate on your family home.

But have you maxed out your pensions contributions?
That is probably why it's best to provide all the following information:

Thanks Brendan

Caught up in RPZ on both so rents are miles off market rates.

APT will end up as a 20k loss for CGT, lucky to have bought it in 07 at the top of the market, rented now for about 10 years.
House would be about a 60k taking the above loss into account. so probably looking at 20k CGT

Clearing the apt and home loan would save me about 1,400 a month better off, leaves us in a good position

I think selling the APT and making a plan around the remining house is where I am leaning.

Pension is a fair point in a semi state will get 32 of 40 years in a DB so AVC's are a good suggestion. 46 now so time is on my side.

Truthfully I am sick of the portrayal in the media and am concerned on some of the ideas Gov and opposition are throwing around.
Not to mention the ever changing rules
the lack of support from RTB
I have been lucky with tenants, but have heard plenty of horror stories.
Hence the thought of getting out altogether.

Frank said:

Truthfully I am sick of the portrayal in the media and am concerned on some of the ideas Gov and opposition are throwing around.
Not to mention the ever changing rules
the lack of support from RTB
I have been lucky with tenants, but have heard plenty of horror stories.
Hence the thought of getting out altogether.

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That certainly is the most important factor.

The decision to keep or sell is not close enough, so hassle would be a factor.

And worry that you might not be allowed to sell it would also be a factor.

Brendan

There still isn’t enough information there to make a meaningful recommendation.