lett or sell

black_taxi_2

my flat is valued at £107k


mortgage 40k


say i want to keep property but move up to a property valued about 200k.

once mortgage is paid off--i can expect a rent of £450 a month after letting agent costs.


1.do i pay mortgage off quickly-3 years--then save for a deposit 2 years(5 year time period.


2.keep part mortgage--save up a deposit(interest rates are low)


3.pay off mortgage-sell flat(the next flat i get is the one i will stay rest of my life--im 47


1.keep flat for pension

thx

Cannon_Fodder

If you have the ability to clear a £40k mortgage in 3 years, then you can raise that amount as deposit in 3 years, and buy the second flat then. 20% deposit will be a decent deal.

Then rent out the first flat. Its rent pays for its mortgage.

That same £40k in 3 years ability, means you can clear the new £160k mortgage in 12 years, getting you to 62, and leaving 3 years of saving another £40k before retirement, to go alongside the value of the flat as your pension.

Don't ignore the normal pension route, altogether. Keeping some eggs in each basket is a good idea, as you don't know which market might suffer a collapse, or when.

black_taxi_2

£1500 payments a month are a bit much---any way i can lower that

CloudCuckooLand

Buy a cheaper place...
Take longer to pay it off, which jeopardises retirement...
Sell the first flat so its equity is the deposit, instead of waiting to save it up...reduces the mortgage £135k too, so takes less time to repay - then do the saving/investing for pension after that.