Hi All,
Last year I purchased a new PPR and rented out my previous PPR. The bank were happy to me to keep my existing house. I had bought in the boom so my house was not worth what I paid for it (although not in negative equity). I had a house purchase fall through etc, so it suited to be still in my existing house. My hope (at the time) was that the house would increase a bit further in value in the coming years. I would then sell and reduce the mortgage on my PPR. The current tenant had been about to give notice to quit when the pandemic hit. Now I think they will stay longer. Rent still being paid. If the tenant moves out I'm wondering if I should rent again or look at selling. In looking at the numbers I might be better taking a bit of a hit on the sell price rather than paying out more interest on my PPR? That would be assuming I could get at least the pre covid price (which might not be realistic).
Month on month the investment property (after expenses/tax) is just short of covering cash flow.
Investment property (3 bed semi)
Purchased 2006 for 231,00
Initial Mortgage: 200,000
Interest rate: 0.58%
Remaining term: 13 years aprox
Outstanding balance 117600 aprox
PPR for 13 years
Current value aprox 200,000 before the covid crisis. Unsure at the moment.
PPR
Purchased 2019 for 255,000
Initial Mortgage: 204,000
Interest rate: 3% (fixed for 5 years)
Remaining term; 24 years
Outstanding balance 197,000
Last year I purchased a new PPR and rented out my previous PPR. The bank were happy to me to keep my existing house. I had bought in the boom so my house was not worth what I paid for it (although not in negative equity). I had a house purchase fall through etc, so it suited to be still in my existing house. My hope (at the time) was that the house would increase a bit further in value in the coming years. I would then sell and reduce the mortgage on my PPR. The current tenant had been about to give notice to quit when the pandemic hit. Now I think they will stay longer. Rent still being paid. If the tenant moves out I'm wondering if I should rent again or look at selling. In looking at the numbers I might be better taking a bit of a hit on the sell price rather than paying out more interest on my PPR? That would be assuming I could get at least the pre covid price (which might not be realistic).
Month on month the investment property (after expenses/tax) is just short of covering cash flow.
Investment property (3 bed semi)
Purchased 2006 for 231,00
Initial Mortgage: 200,000
Interest rate: 0.58%
Remaining term: 13 years aprox
Outstanding balance 117600 aprox
PPR for 13 years
Current value aprox 200,000 before the covid crisis. Unsure at the moment.
PPR
Purchased 2019 for 255,000
Initial Mortgage: 204,000
Interest rate: 3% (fixed for 5 years)
Remaining term; 24 years
Outstanding balance 197,000