Should we sell Investment Property to buy house?

[son of riker]

I have a one bed apartment in Tallaght on a tracker. Im renting it at the moment . It used to be my principle residence. The wife and I live in an Apartment in South side dublin which we owe 130k on -a two bed. Ten years or so left on Mortgage and in a very good location. I would still say it would fetch around 200k but hard to say in current climate but it is not in neg equity. She point blank refuses to sell the 2 bed as she regards it as her pension and she bought it originally.

Here is our issue-we want to buy a house next year. The Apartment in tallaght is drowning in neg equity. We owe 130k on tallaght as well but its a longer term-something like 27 yrs left. Its worth only about 80-90k in current market. I bought it for 180k in 2003 (late)

Personally I dont want to have 3 properties-well particularly two investment. Tallaght is renting and taking in 725 . I have a letting agent to pay as well. Im just wondering is that a bad idea keeping both places? Our joint income is secure next few years and totals 90K

 

[fizzelina]

Banks won't take rental income into account very often now, in other words to get a mortgage for a 3rd property house you would need to prove that you could repay all 3 mortgages even if they were vacant and not let out. If the 2 bed has potentially 70k equity in it then this could cover the negative equity on Tallaght apt. You could sell the 2 bed, sell the 1 bed - put both up and hope they do sell and then with any funds left over use that as deposit on a house. Personally I would rather do that, own one house and not be a landlord.