Sun Room Or Clear Mortgage

S

STEPHANIE1

Guest
I have 30,000 left to pay off the mortgage that I have on a house that I am renting out. I have the full amount in savings and am wondering should I do the sensible thing and pay off the mortgage or put it into a sunroom in my home that I would dearly love. Anyone with advice, thanks
 
would you not pay the 30k off the mortgage and be happy in the knowledge of knowing you own your rental property outright ?

would a sunroom cost 30 k??
Ive always been taught to pay for most things cash as it wont take long to save up again, but with loans the interests rates can be so high and can take lifetimes to clear. just a suggestion, i wish you well.
 
wicklowlass said:
would you not pay the 30k off the mortgage and be happy in the knowledge of knowing you own your rental property outright ?
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100% of the interest on the €30K loan can presumably be used to reduce the individual's rental income tax liability so this is something that needs to be looked at.
 
im not sure i understand? would that mean the OP would be less well off?
 
No - if his rental income is more that the interest charged on the €30K then he is effectively getting an interest free loan so is probably better off since he has €30K interest free credit AND €30K in cash. If he clears the investment property mortgage with the cash as you suggest then he has neither so is worse off.
 
i understand, so maybe the sunroom might be the better option !
 
pay off your mortgage and borrow 30,000 at a better rate that a mortgage rate
 
Go with the sun room. 30,000k seems like a lot of money. What size is the sun room you are planning? I know 4 homes do a DIY sunroom that works out about 7k depending on the size and if you erect it yourself. They can be manuefactored to your spec if you get directly onto the makers people.
Also as mentioned above there is no Tax incentive advantage in clearing your investment mortgage.
 
newname said:
pay off your mortgage and borrow 30,000 at a better rate that a mortgage rate
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Er - keep the €30K outstanding on the rental property and switch to interest only and the rate is effectively 0% as long as rental income is greater than or equal to the interest repayments. Can't really better that?
 
plus mortgage rates are far cheaper than personal loans
 
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