Hi Wanttomove,
you have another option
3. Sell your home, take out personal loan for the negative equity, and rent in the area you want.
Depending on your short term plans, this might be a lower risk option.
Also, my own personal opinion, for what it's worth, and is solely based on the multiple threads here over the years......
Sell your old house. Do not rent it. Renting a house is a business, and one not to be taken on lightly. There appears to be no return in it, even loss making, and it leaves you open to a lot of heartache and hassle (bad tenants, phone calls in the early hours of the morning regarding broken pipes, and from neighbours about unruly tenants). And remember that you would have a €124, mortgage on the property, which would still have to be serviced, even if the property is between tenants.
Based on the number of costs in renting a house (PRTB, maintenance, insurance, mortgage, advertising etc.) it appears to be one of those business's that gains from owning multiple houses. Renting five houses does not equate to 5 times the hassle and costs. Renting one house just doesn't pay.