sell up or keep and remortgage 2nd property

lotsakids

Hi, this is my first time posting, so please be patient if I'm a bit muddled!


Hubby and I are currently renting our home, but we own a flat which we rent out to tenants. New babies (yes twins!) on the way soon so we are now looking to buy our home and extend. We think we can just about scrape together enough to purchase through a big mortgage, gifts from family and every penny of our savings and with a remortgage of the flat. BUT if we sold the flat we'd have enough to buy and do a bit of work. We could manage without the work for a couple of years while the babies are small, but within 3 years our eldest (the only boy) will likely want his own room so we'd need to extend.


So question... do we flog the flat - it has increased in value by 50% over the last 10 years so we can hopefully realise a fair chunk out of that. Or do we keep it and remortgage to pull out a smaller amount now, with the thought that it will continue to increase in value and in 5-10 years maybe get more out of it.

It is in a good rental location, so we've not had much trouble getting tenants, although they usually only stay a year so we do have costs annually to get new tenants in. The rent more than covers the mortgage payments on it.


Any thoughts or experiences very welcome


Thank you.

Thrugelmir

As you don't currently own your home then sell the flat. Your own security should be the priority. Investment property should follow when you are financially better established.