We recently sold an investment property at a loss. We bought it at the very top of the market in 2005 and it took until 2023 for the price to come anywhere near the original purchase price. We also had our share of difficult tenants as well as some great tenants over the years.
We are lucky enough to have €100k left over from the sale which we are considering using to pay off another investment property.
This would leave us debt free. We have a tracker mortgage on the property. If the tracker rate hadn't gone up so much I wouldn't need to ask the question. However, it seems wrong to be paying €6k interest on a €100k loan when we have the capacity to pay it off.
We appreciate how much luckier we are than others who lost out more in this accidental landlord scenario. It hasn't been an easy eighteen years but we got through it, albeit at a bit of a loss on the first property as well as a lot of tight corners being navigated over the years.
Should we pay off the loan fully?
We are lucky enough to have €100k left over from the sale which we are considering using to pay off another investment property.
This would leave us debt free. We have a tracker mortgage on the property. If the tracker rate hadn't gone up so much I wouldn't need to ask the question. However, it seems wrong to be paying €6k interest on a €100k loan when we have the capacity to pay it off.
We appreciate how much luckier we are than others who lost out more in this accidental landlord scenario. It hasn't been an easy eighteen years but we got through it, albeit at a bit of a loss on the first property as well as a lot of tight corners being navigated over the years.
Should we pay off the loan fully?