hi, I wonder if someone can point me in the right direction about what to do with a second property which I own. This is my current financial situation
1st property
Purchase price - 265000
Value approx today - 210000
Rate - tracker +1.15%
Term left - 23yrs
Mortgage - 188000 approx 750pm
Rent - 1000pm
Second property
Purchase price 420000
Value 420000
Rate - fixed 3%
Mortgage - 325000
My question is, is it time to sell my first property or continue to rent it? The tenants I have are dream tenants and had no issue renting it. I have yet to pay rental income tax as this is my second year of renting so I'm not 100% sure on my tax bill. I'm reluctant to sell solely because of my tracker rate but if it doesn't make financial sense to hold on to it I'll sell. Porting the tracker to my new house didn't benefit me at all as the bank were looking to add 2% on top of my current rate.
I don't mind the hassle of a being a landlord and the extra work. So do I hold on for a couple of more years because of my cheap tracker rate? Which I know won't last forever!
Hope that all makes sense.
Thanks
1st property
Purchase price - 265000
Value approx today - 210000
Rate - tracker +1.15%
Term left - 23yrs
Mortgage - 188000 approx 750pm
Rent - 1000pm
Second property
Purchase price 420000
Value 420000
Rate - fixed 3%
Mortgage - 325000
My question is, is it time to sell my first property or continue to rent it? The tenants I have are dream tenants and had no issue renting it. I have yet to pay rental income tax as this is my second year of renting so I'm not 100% sure on my tax bill. I'm reluctant to sell solely because of my tracker rate but if it doesn't make financial sense to hold on to it I'll sell. Porting the tracker to my new house didn't benefit me at all as the bank were looking to add 2% on top of my current rate.
I don't mind the hassle of a being a landlord and the extra work. So do I hold on for a couple of more years because of my cheap tracker rate? Which I know won't last forever!
Hope that all makes sense.
Thanks