Sell or lease ?

sigur

I currently have a small property with a mortgage of around 50% of the current value.

We bought a larger place last year and decided to rent the small property out.


Im now considering whether to sell the small property and use the monies to pay off a chunk of my current mortgage. However the property is in a good location for leasing and Im just wondering whether to go ahead and sell it or continue leasing it.


Anyone willing to offer some sensible advice ??

Trying_to_be_good

Is the small property on a buy-to-let mortgage? Is it let? Does the rent cover the mortgage? Is the value of the property decreasing quickly?

Can you comfortably cover the mortgage repayments on your home?

I would think, in this climate, only sell if you have to.

sigur

Trying_to_be_good wrote: »

Is the small property on a buy-to-let mortgage? Is it let? Does the rent cover the mortgage? Is the value of the property decreasing quickly?

Can you comfortably cover the mortgage repayments on your home?

I would think, in this climate, only sell if you have to.

Is let.

Rent covers the mortgage

Not decreasing too badly

Can meet the repayment on our current home but the money from selling the 2nd property would lower the payments significantly allowing to be more flexible.

2912pwil

Think property prices will keep falling? - Sell... (work it out - try the sums for a further 5% or 10% loss...)

Think property prices will stabilise/rise ?? - Hold on/buy another...

sigur

I have worked out that my current gross yield is around 12%.

Is this a figure that should see me keep the property or should I go ahead and sell in order to reduce my larger mortgage ?