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Auction House
smurf1963
Posts: 2 Newbie
Hi there i have a property which is mortgage free, however i have to pay a relative 40k out of the house we have had it on market for over a year and reduced price but have still not sold, i rent it out normally. i was wondering weather to take it to auction or take mortgage out for 40k to pay off debt, and continue renting.Any ideas.
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Comments
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Well, you have equity (wealth, cash) locked up in the property. 40k of this is not yours.
If you want to have your wealth in the property then take the mortgage out.
If you want to extract your wealth and put it somewhere else, then sell the property and pay the relative from the proceeds.
Where you want to invest your own wealth is the key question - selling the place or mortgaging are both perfectly decent routes to answering it.0 -
At the moment property seems to be the best option for savings.
Regards,
N.Never be afraid to take a profit.
Keep breathing. :eek:
Just because I am surrounded by FOOLS does not make me wise. :j0 -
Are you holding out for a particular price for some reason?
Prices are expected to remain well below peak for at least another 5 years...
Which isn't such a bad thing, as to make the mortgage arrangement and other fees worth paying, you probably want to run a mortgage for more than 5 years anyway.
Trouble is, 5 years worth of interest is going to be around £10k on its own...and going to have to come from somewhere; income, rent, additional borrowing...?
Better to sell for £5k less, and save £5k overall ?0 -
At the moment property seems to be the best option for savings.
Hmmmmmmmm.......0
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