hi, just looking for a bit of advice.
We have a home already, 88.5 k outstanding on a v good tracker rate. Not In negative equity at the mo as house is probably worth 215/240k, assuming a sale can be obtained...Have inherited a house that requires a bit of work, will cost about 200k when all is done to a good standard, we will do it as follows...
130k on boi mortgage, (can't qualify for any of the others, for a variety of reasons)
30 k on credit union loan , balance with our own savings.
Both myself and the wife are working with good secure jobs.
I like the house that we are currently living in and am thinking that it might be a good idea to hold on to it as a rental, however because of the punitive tax associated with house rental, we will be not able to cover the cost of the mortgage and accordingly will have to make up the shortfall from our own resources. There's also the issue of fear of hassle associated with becoming a landlord. Is it worth the bother?
The financial no brainer I am referring to in the title of the post is as follows... Should we cash in our chips, pay off both mortgages, do up the inherited property, and be left with a smallish loan of 30k once all the dealings have been completed.
Or continue to subsidise the tracker mortgage shortfall to the tune of 400pm while renting out our old house to own it outright in 13 years time at whatever value it may be worth then?
Surely the correct decision is to sell original house? Thank you.
We have a home already, 88.5 k outstanding on a v good tracker rate. Not In negative equity at the mo as house is probably worth 215/240k, assuming a sale can be obtained...Have inherited a house that requires a bit of work, will cost about 200k when all is done to a good standard, we will do it as follows...
130k on boi mortgage, (can't qualify for any of the others, for a variety of reasons)
30 k on credit union loan , balance with our own savings.
Both myself and the wife are working with good secure jobs.
I like the house that we are currently living in and am thinking that it might be a good idea to hold on to it as a rental, however because of the punitive tax associated with house rental, we will be not able to cover the cost of the mortgage and accordingly will have to make up the shortfall from our own resources. There's also the issue of fear of hassle associated with becoming a landlord. Is it worth the bother?
The financial no brainer I am referring to in the title of the post is as follows... Should we cash in our chips, pay off both mortgages, do up the inherited property, and be left with a smallish loan of 30k once all the dealings have been completed.
Or continue to subsidise the tracker mortgage shortfall to the tune of 400pm while renting out our old house to own it outright in 13 years time at whatever value it may be worth then?
Surely the correct decision is to sell original house? Thank you.