We currently have 3 houses
1) PPR value approx 600k, mortgage 160k
2) Investment Property, value 340k, mortgage 0, rental income 900pm
3) Investment Property, value 340k, mortgage 38k, rental income 900pm
We have our eye on a holiday home at the moment, cost price after stamp duty 300k.
Our annual income is approx 105k as one of us work part-time. We were going to sell property 3 to finance the holiday home, given that our debt to equity is relatively low, should we hold on to this property do you think ? We can afford to keep property 3 but our savings (immediately available cash) might not be as big as if we sell. We do have 2 SSIAs account comming through next year. My thinking is to hold on to it and consider the monthly repayments as savings as we would probably get more return on putting the money into property than savings plans. Is this dangerous thinking ?
If we should keep house number 3) what is the best way for us to finance it (we would need to borrow 300k) in order to maximize relief on interest payments. We may let out this holiday home for approx 10 weeks per year from next year onwards as this summer would be spent renovating.
If we were to sell property 3) is there any benefit in paying off our home mortgage (160k) first and taking out a 160k mortgage on the holiday home, given that we will probably let it for a portion of the year from 2007 onwards ?
1) PPR value approx 600k, mortgage 160k
2) Investment Property, value 340k, mortgage 0, rental income 900pm
3) Investment Property, value 340k, mortgage 38k, rental income 900pm
We have our eye on a holiday home at the moment, cost price after stamp duty 300k.
Our annual income is approx 105k as one of us work part-time. We were going to sell property 3 to finance the holiday home, given that our debt to equity is relatively low, should we hold on to this property do you think ? We can afford to keep property 3 but our savings (immediately available cash) might not be as big as if we sell. We do have 2 SSIAs account comming through next year. My thinking is to hold on to it and consider the monthly repayments as savings as we would probably get more return on putting the money into property than savings plans. Is this dangerous thinking ?
If we should keep house number 3) what is the best way for us to finance it (we would need to borrow 300k) in order to maximize relief on interest payments. We may let out this holiday home for approx 10 weeks per year from next year onwards as this summer would be spent renovating.
If we were to sell property 3) is there any benefit in paying off our home mortgage (160k) first and taking out a 160k mortgage on the holiday home, given that we will probably let it for a portion of the year from 2007 onwards ?