what should i do?

mose_2

hello all, any advise here would be great. i have a flat worth about 120k and a mortgage of 45k, we are looking to move in about a years time as we have baby on the way and want to move away from this area, question is what should i do with my flat? i would like to keep it and rent it out but im thinking it might be a bit of a risk? both our incomes ammount to 37k pa, the rent i could get on the flat would be about 500-550 a month which would cover the mortgage (after re-mortgaging for about 40k taking it to 85k). we would like to put the 40k down on a house for about 160-180k. we are just not sure we would be able to afford the mortgage on the new place, and would be worried that if the flat is tennent-less that we would not be able to pay this.

really confused at the moment as we really want to make the flat work for us.

any advise?

ReportInvestor

If you aren't sure that you will be able to afford the mortgage on your new house, and interest rates are about to go up, you are in dangerous territory.

Will both your incomes continue after the birth of your new baby? I've seen motherhood change people's attitude to their career. Is it an option to wait until you've had the baby to see how you feel then?

mose_2

yes we will be waiting for the birth as my wife has to go back to work for three months to get her maternity pay(shes a teacher) it will be roughly this time next year that we will want to move.
does anybody think it a good idea to keep the flat and rent it out or just sell up and put more deposit down on the new place(roughly 70k).

jamminjamaica

maybe one big change in your life is enough. do you really want to keep the flat? why dont you just sell it and get yourselves a better home and not overstretch yourself. hope it all works out for you. oh and congratulations!

lynzpower

personally Id sell the flat.

As you say yourself you are not likely to want to live in it again ( unless you want to when the kids have grown up & moved out ) and by your own admission if it was vacant you wouldnt be able to afford to run it. What about repairs, repaints, new furniture, and all the wear & tear issues on the falt, would you be able to have the money set aside for these

I dont think its worth the hassle to be honest.

Mrs_pbradley936

I think I would sell it and be in a position to borrow less on the new place. In addition to the previously mentioned hassle you have to pay income tax on the rental income.

mose_2

thanks to everyone for the replies. well i will have a look at my situation again in six months or so.

thanks all......:T