Sell a flat to finance a house?

xchaotic

Hi.

I currently have a mortgage on a flat, which I rent out to a friendly couple. They pay slightly below the market rate, but fix all things on their end and I don't have to worry about anything.
In financial terms, I have to, very slightly top up their rent, to pay off the mortgage.
I am now in the process of acquiring a house, which I may be able to w/o getting the other flat involved, but I am obviously considering selling the flat to finance the house as otherwise my portfolio is rather unbalanced towards property, can not be liquidated easily etc.
On the other hand the flat is in an area where it is easy to rent out, is appreciating in value and it would be nice to have some passive income some time in the future, it also fells like having two properties would me me more 'rich' even if both had mortgages to be paid off. Again, I'm sure a lot of you will disagree and I'd love to hear that.

kidmugsy

"my portfolio is rather unbalanced towards property, can not be liquidated easily etc.": you said it!

Turnbull2000

You should think of the rented property as a pension. You'd contribute hundreds of pounds per month to a traditional pension for most of your working life, whereas with property you'll contribute a few quid now, but the rent will eventually rise above and beyond the mortgage and your tenants will be funding your 'pension' instead.

Perhaps once the rental income rises above the mortgage (which it will, and substantially so given time), divert the profit into alternative investments along with your own contributions.