Help us decide-short or long term gain??

shamac

This is our situation

Have a self built house which has taken 3 years slog and every penny we have to complete-just started this summer doing holiday lets-been quite successful-fully booked july/aug/sept/oct but who knows over the winter? Have mortgage on it of £130k-it seems it might just about cover costs long term.

Need to be in another area so living in brothers flat-1 bed -4 people-not good.

Our choice is this
1) sell self build house will walk away with about £100k-if lucky! Buy house in area we need to be in, be able to maybe clear mortgage in 10 yearsish (currently 42 yrs old).and live quite comfortably-have 2 kids 8 and 10 years-nice holidays for them etc.

2) Keep holiday let as a business, save for deposit buy another house with huge mortgage-and have no holidays etc. But when mortgage paid off the holiday house will give us an income-but not for another 15 yearsish-so will be good for pension planning.-but will be tight moneywise through the rest of the kids childhood.

Heart says sell, head says keep-would kids prefer the money spent on them now or to potentially be left a house each when we are gone??????

Pension situation is ok-will both get full state pension and husband will get a norwegian pension. I will get a teachers pension and husband also has small pension from an old job.

HELP!!!!

olias

What about selling the holiday let, using half the profit as large deposit on new place (therefore smaller mortgage) and the other half as a deposit on a BTL as a long term investment.

Olias

Fire_Fox

Smart holidays don't make a happy childhood - parents who are affectionate and attentive, who play football or bake cakes with you leave you with cherished memories. If your children are brought up loved they won't care what they are left in the will, they will simply miss their mum and dad.

There are a million and one ways to make a small budget stretch a long way - and they are all over these boards! Start by completing a Statement of Affairs to work out exactly where your current income is being spent. Then address every outgoing one by one. http://www.makesenseofcards.com/soacalc.html

Lots of people have free or very cheap holidays but collecting tokens from the Sun newspaper, Tesco Clubcard points for deals tokens, air miles etc. You have the added advantage of having a property you could holiday in yourself occasionally.