Sell investment property and existing home to trade up?

oakcountyguy

Registered User
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3
Hi all,

Looking for some advice.

Married, 2 kids.

Combined income 115k

We have the following properties and are not sure what to do.
1. Home house, 4 bed detached, ok estate but not our house for life, value 290k, mortgage 175k.
2. Investment house, 3 bed semi, rented out, covers the mortgage, value 185, mortgage 110, 9 years left to clear.
3. Investment house, was not the plan as we were going to move there, built over an 8 year period, gifted the site, no mortgage, rented so an income, value 220k.

I know we are fortunate, but we want to move from property 1 to a nice home for our family, which means selling property 3 for sure, and to be almost mortgage free, if we sold our current home house also.....someone has advised we do not sell the current home house, but rent it out, and keep the existing mortgage amount, are we mad to consider this, there's 14 years left on it. Would we just be putting ourselves under pressure ?
 
1) How much will your "house for life" cost?
2) Do you have a tracker mortgage on either your home or your investment property?
3) How much did the investment property with the mortgage cost you?
4) Will there be a capital gain or loss on the mortgage-free property?
 
1) How much will your "house for life" cost? 400-430k approx.
2) Do you have a tracker mortgage on either your home or your investment property? tracker on investment house the 3 bed semi, variable for current home house
3) How much did the investment property with the mortgage cost you? cost 199.
4) Will there be a capital gain or loss on the mortgage-free property? yes 30k capital gains on this property
 
Target house price + costs: €450k
Sell home: €115k
Mortgage required: €330k

Sell mortgage-free property: €210k
Mortgage required: €120k

Result:
Home worth €450k with mortgage of €120k : Equity of €330k
Investment worth €185k , mortgage of €110k: Equity of €75k

Total property: €635k
Total mortgages: €230k

That seems like a large enough exposure to property prices and interest rates.

So it seems to me that you should sell both the investment and your home.

If you keep your home,
Total property: €925k
Total mortgages: €400k

Something wrong with my numbers, but in any event that is too much property and too big a loan.

1) Sell the investment property
2) Try to buy a new home while keeping your old home.
3) Then put your old home on the market.

Brendan
 
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