Hello,
We are moving to a new town due to work and are looking at purchasing a home there. This is to be our final home so we want to renovate it to suit us for the long term. The purchase price is 250K and we expect to have to spend 100k on renovations. There is no hurry with the renovations as it is perfectly liveable now. When we sell the house we live in now we will have 120k. I have a rental property which I am subsidising by 225 euro a month. If I sell this property I could raise another 70k after expenses. We are also selling an inheritance (land) which could raise another 70k. My question is twofold. Should I sell the investment property which I am subsidising but is increasing in capital value and the mortgage is dropping by 10k a year.There is 15 years left on the mortgage and if all went well would be a nice amount to have in the bank in 15 years time when the kids will be starting university and I will be retiring. Or should I sell it now and use the money to reduce amount I need to borrow for our new purchase. Secondly if I sell the investment property should I use this and the money from the land to buy the property outright and then borrow to renovate 120+70+70 = 260 or should I borrow 130K to complete the purchase and use the funds from investment property and land to carry out the renovations. I am a new poster and not an expert in finance so all advice is appreciated.
Regards and thanks in advance.
We are moving to a new town due to work and are looking at purchasing a home there. This is to be our final home so we want to renovate it to suit us for the long term. The purchase price is 250K and we expect to have to spend 100k on renovations. There is no hurry with the renovations as it is perfectly liveable now. When we sell the house we live in now we will have 120k. I have a rental property which I am subsidising by 225 euro a month. If I sell this property I could raise another 70k after expenses. We are also selling an inheritance (land) which could raise another 70k. My question is twofold. Should I sell the investment property which I am subsidising but is increasing in capital value and the mortgage is dropping by 10k a year.There is 15 years left on the mortgage and if all went well would be a nice amount to have in the bank in 15 years time when the kids will be starting university and I will be retiring. Or should I sell it now and use the money to reduce amount I need to borrow for our new purchase. Secondly if I sell the investment property should I use this and the money from the land to buy the property outright and then borrow to renovate 120+70+70 = 260 or should I borrow 130K to complete the purchase and use the funds from investment property and land to carry out the renovations. I am a new poster and not an expert in finance so all advice is appreciated.
Regards and thanks in advance.