Age old question...
I live in a great one-bed apt in central Dublin, but I'm buying a new 2-bed one. I'm trying to decide whether to sell the one-bed, or keep it and rent it out.
One-bed value - 320,000
New two-bed value - 600,000
My Savings - 120,000
Projected rent - 1,000 (for 10 months = 850 per month).
It seems I could get an interest only loan for 280,000 on the one-bed (in addition to a repayment one for the new place), in order to "keep" it.Repayments on this interest-only would be about 730 per month. Plus 200 maintenance fee, and 100 general expenses. This means the (conservatively calculated) rent doesn't cover the costs:
Rent - 850
Costs - 730 + 200 + 100 = 1030.
Also, if I factor in a point or two interest rate rises, then having TWO mortgages really seems to increase the risk.
So although the one-bed is really nice and eminantly rentable, I'm not really sure what to do.
I live in a great one-bed apt in central Dublin, but I'm buying a new 2-bed one. I'm trying to decide whether to sell the one-bed, or keep it and rent it out.
One-bed value - 320,000
New two-bed value - 600,000
My Savings - 120,000
Projected rent - 1,000 (for 10 months = 850 per month).
It seems I could get an interest only loan for 280,000 on the one-bed (in addition to a repayment one for the new place), in order to "keep" it.Repayments on this interest-only would be about 730 per month. Plus 200 maintenance fee, and 100 general expenses. This means the (conservatively calculated) rent doesn't cover the costs:
Rent - 850
Costs - 730 + 200 + 100 = 1030.
Also, if I factor in a point or two interest rate rises, then having TWO mortgages really seems to increase the risk.
So although the one-bed is really nice and eminantly rentable, I'm not really sure what to do.